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Departmental Expenditure Limit (2009-10)

Volume 501: debated on Tuesday 24 November 2009

Subject to parliamentary approval of the necessary Supplementary Estimate, the Department for Work and Pensions Resource Departmental Expenditure Limit will decrease by £166,843,000 to £8,805,256,000 and the Capital Departmental Expenditure Limit will increase by £207,762,000 to £284,517,000. The Administration budget will decrease by £160,512,000 to £6,204,337,000.

Change £kNew Departmental Expenditure Limit £k

Voted

Non-voted

Total

Voted

Non-voted

Total

Resource

-838,686

671,843

-166,843

5,880,783

2,924,473

8,805,256

of which:

Administration

-842,936

682,424

-160,512

4,800,729

1,403,608

6,204,337

Near-cash

-918,863

680,653

-238,210

5,619,053

2,957,899

8,576,952

Capital

207,828

-66

207,762

283,709

808

284,517

Depreciation*

-68,076

329

-67,747

-234,194

-1,105

-235,299

Total DEL

-698,934

672,106

-26,828

5,930,298

2,924,176

8,854,474

*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:

Movements in Voted Expenditure

Request for Resources 1

i. Classification changes as a result of adopting International Financial Reporting

Standards (IFRS). In RfR1 this has led to a reduction in DEL Resource of £132,679,000.

Request for Resources 2

ii. Classification changes as a result of adopting International Financial Reporting Standards (IFRS). In RfR2 this has led to a reduction in DEL Resource of £768,861,000.

iii. A budget transfer of £4,720,000 to the Ministry of Justice to fund increased activity through the courts relating to Child Maintenance, following repeal of section 6 of the Child Support Act 1991.

iv. A budget transfer of £8,600,000 to the Ministry of Justice to meet the costs associated with increased Employment and Support Allowance appeals.

v. A budget transfer of £5,759,000 to the Department for Business Innovation and Skills relating to the self-employment option of the Government’s six month offer.

vi. A budget transfer of £572,000 to the Department for Children, Schools and Families in respect of the Child Poverty Unit.

Request for Resources 3

vii. Classification changes as a result of adopting International Financial Reporting Standards (IFRS). In RfR3 this has led to a reduction in DEL Resource of £117,497,000.

viii. A budget transfer of £440,000 to the Department for Communities and Local Government in respect of Older People’s Engagement.

Request for Resources 4

ix. Classification changes as a result of adopting International Financial Reporting Standards (IFRS). In RfR4 this has led to a reduction in DEL Resource of £53,215,000.

Request for Resources 5

x. Classification changes as a result of adopting International Financial Reporting

Standards (IFRS). In RfR5 this has led to an increase in DEL Resource of £242,700,000.

xi. A budget transfer of £376,000 from the Cabinet Office to enable the Department to meet additional costs incurred by the Office of the Parliamentary Counsel.

Movements in Non-Voted Expenditure

xii. Classification changes as a result of adopting International Financial Reporting Standards (IFRS). This has led to an increase in non-voted DEL Resource of £682,424,000.

xiii. A decrease in non-voted expenditure of £806,000 offset by an increase in voted expenditure of £806,000 relating to decreased spend of Working Ventures (UK) Limited.

xiv. A decrease in non-voted expenditure of £2,774,000 offset by an increase in voted expenditure of £2,774,000 relating to decreased spend of the Independent Living Fund.

xv. An increase in non-voted expenditure of £172,000 offset by a decrease in voted expenditure of £172,000 relating to increased spend of the Pensions Advisory Service.

xvi. An increase in non-voted expenditure of £261,000 offset by a decrease in voted expenditure of £261,000 relating to increased spend of the Pensions Ombudsman.

xvii. A decrease in non-voted expenditure of £7,796,000 offset by an increase in voted expenditure of £7,796,000 relating to decreased spend of the Personal Accounts Delivery Authority.

xviii. An increase in non-voted expenditure of £431,000 offset by a decrease in voted expenditure of £431,000 relating to increased spend of the Pensions Regulator.

xix. A decrease in non-voted expenditure of £69,000 offset by an increase in voted expenditure of £69,000 relating to the alignment of internal plans.

Capital Departmental Expenditure Limit

The change in the capital element of the Departmental Expenditure Limit arises from:

Movements in Voted Expenditure

Request for Resources 2

xx. Classification changes as a result of adopting International Financial Reporting Standards (IFRS). In RfR2 this has led to an increase in DEL Capital of £52,336,000.

Request for Resources 3

xxi. Classification changes as a result of adopting International Financial Reporting Standards (IFRS). In RfR3 this has led to an increase in DEL Capital of £5,913,000.

Request for Resources 5

xxii. Classification changes as a result of adopting International Financial Reporting Standards (IFRS). In RfR5 this has led to an increase in DEL Capital of £149,513,000.

Movements in Non-Voted Expenditure

xxiii. A decrease in non-voted capital expenditure of £9,000 offset by an increase in voted capital expenditure of £9,000 relating to decreased spend of the Pensions Advisory Service.

xxiv. An increase in non-voted capital expenditure of £213,000 offset by a decrease in voted capital expenditure of £213,000 relating to decreased spend of the Personal Accounts Delivery Authority.

xxv. A decrease in non-voted capital expenditure of £270,000 offset by an increase in voted capital expenditure of £270,000 relating to decreased spend of the Pensions Regulator

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 iv, and vii to xii above.