Subject to Parliamentary approval of the necessary Supplementary Estimate, the Department for Work and Pensions Total Departmental Expenditure Limit will increase by £175,531,000 from £7,837,785,000 to £8,013,316,000 and the administration budget will increase by £139,878,000 from £5,693,829,000 to £5,833,707,000.
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 207,846 -51,120 156,726 6,589,338 1,457,027 8,046,365 Of which: Administration 189,878 -50,000 139,878 5,833,707 — 5,833,707 Near-cash 207,527 -50,801 156,726 6,396,664 1,487,824 7,844,488 Capital 2,546 1,319 3,865 80,659 1,745 82,404 Depreciation1 14,621 319 14,940 -114,177 -1,276 -115,453 Total 225,013 -49,482 175,531 6,555,820 1,457,496 8,013,316 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 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 1
i. A draw down of £46,000,000 of the Department’s Resource End of Year Flexibility stock to fund expenditure of the Child Maintenance Enforcement Commission.
Request for Resources 2
ii. An increase of £20,000,000 as a result of benefit savings realised by the rollout of Provider Led Pathways. An agreement with HM Treasury allows the Department to convert 50p of every £1 saved into Departmental Expenditure Limit funding.
iii. A budget transfer of £1,455,000 to the Ministry of Justice to fund increased operating costs relating to the introduction of Employment Support Allowance.
iv. A budget transfer of £220,000 to the Ministry of Justice to fund expected increases in consent orders through the courts for Child Maintenance, following repeal of section 6 of the Chid Support Act 1991.
v. A budget transfer of £330,000 to the Department for Business Enterprise and Regulatory Reform in relation to Mesothelioma compensation payments.
vi. A budget transfer of £132,000 to the Department for Children, Schools and Families relating to Joint Birth registrations.
vii. Budget transfers to the Scottish Government £114,000, the Welsh Assembly £66,000 and the Department for Children, Schools and Families £1,142,000 in relation to Child Poverty Pilots.
viii. A transfer of £4,000,000 Administration funding was made to the Government Equalities Office, in return for £4,000,000 of Programme funding, resulting in a net nil overall impact on the Departmental Expenditure Limit.
ix. A £3,500,000 reduction in Departmental Expenditure Limit to contribute to increased Annually Managed Expenditure resulting from enhancements to the Support for the Mortgage Interest scheme, announced as part of the Government’s package of help for home-owners.
Request for Resources 3
x. A draw down of £55,000,000 from the Department’s Modernisation Fund. As part of the Comprehensive Spending Review 2007 (CSR07), the Department was given access to a Modernisation Fund of £550,000,000 across all CSR07 years, in addition to its settlement funding.
xi. A budget transfer of £2,000,000 to the Department for Culture, Media and Sport to support the Government’s free swimming initiative.
Request for Resources 5
xii. A draw down of £45,000,000 from the Department’s Modernisation Fund. Refer paragraph 12. above.
xiii. A budget transfer of £315,000 to the Department for Innovation, Universities and Skills in relation to the Government Skills Programme.
Capital Departmental Expenditure Limit
The change in the capital element of the Departmental Expenditure Limit arises from:
Request for Resources 3
xiv. A budget transfer of £2,402,000 from the Northern Ireland Executive relating to the Pension Transformation Programme.
xv. A budget transfer of £1,463,000 from the Department for Children, Schools and Families in relation to the Employee Authentication Service project.
Administration costs
The movement in the Administration Cost limit arises from the changes to the Resource Departmental Expenditure Limit as noted in terms i, iii, iv, vi, viii, x, xii and xiii above, and item xvii below.
Movements in Non-Voted Resource Expenditure
The changes in non-voted resource expenditure arise from:
Request for Resources 1
xvii. A £50,000,000 reduction in non-voted resource fully offset by a £50,000,000 increase in voted resource to reflect the allocation of the Departmental Unallocated Provision to support expenditure on the Child Maintenance and Enforcement Commission.
Request for Resources 2
xviii. An increase in non-voted expenditure of £1,313,000 offset by a decrease in voted expenditure of £1,313,000 in respect of increased spend of Working Ventures (UK) Limited.
Request for Resources 3
xix. An increase in non-voted expenditure of £8,000,000 offset by a decrease in voted expenditure of £8,000,000 on respect of an increased utilisation of the Financial Assistance Scheme provision.
xx. A reduction in non-voted expenditure of £141,000 offset by an increase in voted expenditure of £141,000 in respect of decreased spend of The Pensions Advisory Service.
xxi. An increase in non-voted expenditure of £82,000 offset by a decrease in voted expenditure of £82,000 in respect of decreased spend of The Pensions Ombudsman.
xxii. A reduction in non-voted expenditure of £3,801,000 offset by an increase in voted expenditure of £3,801,000 in respect of decreased spend of The Pensions Regulator.
xxiii. A reduction in non-voted expenditure of £6,573,000 offset by an increase in voted expenditure of £6,573,000 in respect of decreased spend of the Personal Accounts Delivery Authority.
Movements in Non-Voted Capital Expenditure
The changes in non-voted capital relate to the following adjustments:
Request for Resources 3
xxiv. An increase in non-voted expenditure of £448,000 offset by a decrease in voted expenditure of £448,000 in respect of increased spend of The Pensions Regulator.
xxv. An increase in non-voted expenditure of £871,000 offset by a decrease in voted expenditure of £871,000 in respect of increased spend of the Personal Accounts Delivery Authority.