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Department for Work and Pensions: DEL

Volume 689: debated on Tuesday 20 February 2007

My right honourable friend the Secretary of State for Work and Pensions (John Hutton) has made the following Ministerial Statement.

Subject to parliamentary approval of the necessary supplementary estimate, the Department for Work and Pensions DEL will increase by £204,654,000 from £7,780,201,000 to £7,984,855,000 and the administration budget will increase by £225,465,000 from £5,827,134,000 to £6,052,599,000.

Within the DEL change, the impact on resources and capital are as set out in the following table:

Change £kNew DEL £k

Voted

Non-voted

Voted

Non-voted

Total

Resource

278,595

-43,754

6,784,298

1,208,481

7,992,779

of which:

Administration

262,965

-37,500

6,051,289

1,310

6,052,599

Near-cash

205,681

-42,414

6,497,384

1,247,269

7,744,653

Capital

42,903

570

222,235

720

222,955

Depreciation1

-75,000

1,340

-229,667

-1,212

-230,879

Total

246,498

-41,844

6,776,866

1,207,989

7,984,855

1 Depreciation, which forms part of resource DEL, is excluded from the total DEL since capital DEL includes capital spending and to include depreciation of those assets would lead to double counting.

Resource DEL

The change in the resource element of the DEL arises from:

RfR2

a drawdown of end of year flexibility to support expenditure in respect of Jobcentre Plus Change Programme £200 million administration (of which £50 million non-cash);

additional funding in respect of in-work credit as provided in the pre-Budget report £151,000 administration and £9,849,000 other current;

RfR3

a transfer to capital spend of £473,000 in respect of planned expenditure of the pension protection fund.

RfR5

a drawdown of end of year flexibility to support expenditure in respect of centrally managed non-cash costs £25 million (administration).

Capital DEL

The change in the capital element of the DEL arises from:

RfR2

a drawdown of end of year flexibility to support expenditure in respect of Jobcentre Plus Change Programme £43 million;

RfR3

a transfer from resource spend of £473,000 in respect of planned expenditure of the pension protection fund;

Administration Costs

The movement in the administration cost limit arises from those items noted above as affecting administration costs plus the following entry which is offset by other current receipts from the National Insurance Fund (NIF):

an increase in provision of £314,000 (administration) relating to the transfer of functions from the Government Actuary’s Department (GAD).

Movements in non-voted expenditure

Transfers from other government departments:

£314,000 increase in non-voted spend relating to the transfer of functions from Government Actuary’s Department (GAD) and related NIF receipts from Her Majesty’s Revenue and Customs (HMRC).

Additionally, there are the following drawdowns that are neutral in overall DEL terms:

Resource DEL

Housing Benefit Reform Fund (HBRF)

£6,500,000 into RfR2 for modernisation of housing benefit.

Unallocated Provision

£37,500,000 into RfR1 to increase provision for the Child Support Agency operational improvement plan.

Non-Departmental Public Bodies (NDPBs)

£2,285,000 from RfR2 for expenditure by National Employment Panel (NEP) Limited;

£264,000 from RfR2 for increased expenditure by Disability Rights Commission (DRC);

£75,000 from RfR3 for increased expenditure by Centre for Policy on Ageing;

£73,000 into RfR3 relating to decreased expenditure by the Pensions Advisory Service (TPAS);

£708,000 into RfR3 relating to decreased expenditure by the Pensions Ombudsman (PO);

£1,911,000 into RfR3 relating to decreased expenditure by the Pensions Regulator (TPR).

Capital DEL

Non-Departmental Public Bodies (NDPBs)

£550,000 from RfR3 for increased capital expenditure by the Pensions Regulator (TPR).

£20,000 from RfR3 for increased capital expenditure by the Pensions Advisory Service (TPAS).