The Home Office is seeking an advance of £275 million in 2014-15 from the Contingencies Fund under category D of the supply estimates guidance manual to meet its cash funding obligations. The cash advance from the Contingencies Fund is the only mechanism through which the Home Office can meet its financial obligations in March ahead of the conclusion of the supplementary process.
The Home Office has come under significant and sustained cash funding pressure towards the end of the 2014-15 financial year. A number of core and policing pressures have contributed to this. The Department pays out a large proportion of its monthly cash requirement—predominantly police related—within the first week of the month. This leads to a funding shortfall at the start of March, until the additional funds secured through the supplementary become available towards the end of the month. Parliamentary approval for additional resources of £66,400,000 and additional cash of £208,600,000 is being sought within a supplementary estimate for the Home Office. Pending that approval, urgent expenditure estimated at £275 million will be met by repayable cash advances from the Contingencies Fund.