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.
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.