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Departmental Conditions of Employment

Volume 494: debated on Wednesday 17 June 2009

To ask the Minister of State, Department for Transport pursuant to the answer of 2 June 2009, Official Report, column 295W, on departmental conditions of employment, what his most recent estimate is of the cost of modifying systems in his Department's shared service centre to accommodate the workings of the flexible benefits project. (279994)

The cost of modifying systems in the Department for Transport's shared service centre to accommodate the workings of the flexible benefits project is £62,700. This includes architecture changes, programming and payroll reconfiguration.

To ask the Minister of State, Department for Transport pursuant to the answer of 3 June 2009, Official Report, column 485W, on departmental conditions of employment, on what calculations the estimate that the level of take-up required to break even with the scheme is about 2 per cent. over three years was based. (280007)

The cost of implementing and administering flexible benefits over three years is £173,000, including reconfiguration of the shared services centre system. To break even with the scheme will require a 2 per cent. take-up of the benefits we are considering, which equates to an estimated annual spend of £535,000, with aggregated employer national insurance contribution savings of £183,000 over three years. The costing model has been verified by Deloitte who are acting as our benefit consultants.