Subject to Parliamentary approval of the necessary Supplementary Estimate, the Department for Work and Pensions Departmental Expenditure Limit will increase by £6,486,406 from £7,636,561,000 to £7,643,047,406 and the administration budget will increase by £17,880,000 from £5,798,484,000 to £5,816,364,000.
Within the Departmental Expenditure Limit change, the impact on resource and capital is as set out in the following table:
Change New Departmental Expenditure Limit Voted Non-voted Total Voted Non-voted Total Resource 53,139 -45,766 7,373 6,449,887 1,283,350 7,733,237 Of which: Administration 17,880 0 17,880 5,710,554 105,810 5,816,364 Near-cash 53,139 -45,766 7,373 6,238,517 1,332,008 7,570,525 Capital -887 0 -887 63,780 395 64,175 Depreciation1 0 0 0 -153,023 -1,342 -154,365 Total 52,252 -45,766 6,486 6,360,644 1,282,403 7,643,047 1 Depreciation, which forms part of resource Departmental Expenditure Limit, is excluded from the total Departmental Expenditure Limit since the capital Departmental Expenditure Limit includes capital spending and to include depreciation of those assets would lead to double counting.
Resource Departmental Expenditure Limit
The change in the resource element of the Departmental Expenditure Limit arises from:
Request for Resources 3
i. A HM Treasury reclassification of grant in aid of £1,093,000 paid to the Pension Protection Fund from capital to resource (grants).
Request for Resources 5
ii. A draw down of £6,000,000 from the Financial Inclusion Fund in respect of the Growth Fund (administration).
iii. A transfer of £280,000 from the Cabinet Office in respect of the expansion of the Parliamentary Counsel Office (administration).
Capital Departmental Expenditure Limit
The change in the capital element of the Departmental Expenditure Limit arises from:
Request for Resources 2
iv. A draw down of £206,406 from the Invest to Save Budget in respect of funding for the Single Homelessness Enterprise project (£191,406) and the Aspire project (£15,000).
Request for Resources 3
v. A HM Treasury reclassification of grant in aid of £1,093,000 paid to the Pension Protection Fund from capital to resource.
Administration costs
The movement in the Administration Cost limit arises from the changes to the Resource Departmental Expenditure Limit as noted in items i to iii above, plus:
vi. A transfer from other current to administration of £11,600,000,000 previously drawn down from the Housing Benefit Reform Fund to support the Rent Service.
Movements in non-voted expenditure
The reduction in non-voted resource expenditure is due to a reduction in the cost of administering National Insurance Fund benefit payments. This reduction is offset by an increase in voted resource due to an equivalent reduction in income from the HM Revenue and Customs to meet the cost of administering National Insurance Fund benefit payments:
Request for Resources 2
vii. A reduction in non-voted resource expenditure of £23,571,000 offset by an increase in voted resource expenditure of £23,571,000.
Request for Resources 3
viii. A reduction in non-voted resource expenditure of £12,105,000 offset by an increase in voted resource expenditure of £12,105,000.
Request for Resources 5
ix. A reduction in non-voted resource expenditure of £10,090,000 offset by an increase in voted resource expenditure of £10,090,000.