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Departmental Expenditure Limits

Volume 519: debated on Tuesday 23 November 2010

Subject to parliamentary approval of the necessary supplementary estimate, the Department for Work and Pensions Resource departmental expenditure limit will decrease by £35,781,000 to £8,730,218,000 and the Capital departmental expenditure limit will remain unchanged at £243,052,000. The Administration budget will decrease by £31,185,000 to £6,076,705,000.

Change(£’000)New DEL (£’000)

Voted

Non-voted

Total

Voted

Non-voted

Total

Resource

-58,183

22,402

-35,781

5,599,225

3,130,993

8,730,218

of which:

Administration

-31,185

0

-31,185

4,543,556

1,533,149

6,076,705

Capital

18,496

-18,496

0

191,224

51,828

243,052

Depreciation1

919

-1,018

-99

-254,880

-834

-255,714

Total DEL

-40,606

4,924

-35,682

5,535,569

3,181,987

8,717,556

1Depreciation, which forms part of the 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 2

i. A budget transfer of £4,183,000 to the Department for Education to meet the Department’s agreed share of the costs associated with the Child Poverty Innovation fund for 2010-11.

ii. A budget transfer of £413,000 to the Department for Business, Innovation and Skills for Regional Development Agency payments in relation to the School Gates project.

Request for Resources 3

iii. A budget transfer of £1,200,000 to the Paydays and Periodicity for Pension benefits. Small up-front cost of £ 1.2 million required to be transferred to Non-voted AME.

iv. A transfer from Request for Resources 5 of £1,000,000 to cover the costs of Information Assurance for 2010-11.

v. A budget transfer of £1,000,000 to the Cabinet Office for the Department’s contribution to Information Assurance for 2010-11.

Request for Resources 5

vi. A Machinery of Government change of £28,985,000 to the Cabinet Office. This is to bring together and consolidate in the Cabinet Office all the various strands of work on transparency, open data, Government websites and digital engagement.

vii. A transfer to Request for Resources 3 of £1,000,000 to cover the costs of Information Assurance for 2010-11.

Movements in Non-Voted Expenditure

viii. A decrease in non-voted expenditure of £16,000 offset by an increase in voted expenditure of £16,000 relating to decreased spend of the Independent Living Fund.

ix. A decrease in non-voted expenditure of £14,495,000 offset by an increase in voted expenditure of £14,495,000 relating to decreased spend of the Pensions Regulator.

x. A decrease in non-voted expenditure of £226,000 offset by an increase in voted expenditure of £226,000 relating to decreased spend of the Pensions Advisory Service.

xi. A decrease in non-voted expenditure of £75,000 offset by an increase in voted expenditure of £75,000 relating to decreased spend of the Office of the Pensions Ombudsman.

xii. An increase in non-voted expenditure of £37,214,000 offset by an increase in voted income of £37,214,000 relating to the increase of income for administering National Insurance Benefits.

Capital Departmental Expenditure Limit

The net nil movement in the capital element of the Departmental Expenditure Limit arises from:

Movements in Non-Voted Expenditure

xiii. A decrease in non-voted capital expenditure of £18,508,000 offset by an increase in voted capital expenditure of £18,508,000 relating to decreased spend of the Pensions Regulator.

xiv. An increase in non-voted capital expenditure of £12,000 offset by an decrease in voted capital expenditure of £12,000 relating to increased spend of the Pensions Advisory Service.

Administration Costs

The movement in the Administration Cost limit arises from the changes to the Resource Departmental Expenditure Limit as noted in items iii to vii.