Cloverjo from my days in the NHS, the “budget” idea is a way of working out where to put the money for services. If x number of women are choosing to have community births, then the money goes into community services, if the preference goes to hospital admissions, then the budget goes to hospitals. The figure quoted is not what women will be told they have to “spend” but the average cost of a normal birth. Over and above this NHS funding will still have to be provided for mothers and babies who need special monitoring or special services and also of course for emergency facilities. A similar calculation has been used for many years for things like cataract surgery and joint replacement where the patient can choose where and when to have the op from a range of options. the system is called “the money follows the patient” Hospitals and community services (usually based around GP surgeries) negotiate to set up services and will agree a price per case (in this case 3,000 quid), also how many cases they can accommodate and the level of complexity that they can safely deal with. Its then in their interest to offer an excellent service so that as many people as possible choose them.
Properly applied, the system has benefits. people can choose to have their joint replacement near to their family so they don’t have to go home to be alone. In the same way, this should give women (and their partners) more choice over where and how they want to give birth and what pre and post natal support they want instead of being told “this is what you will get because that;’s what’s available"