My right honourable friend the Secretary of State for Work and Pensions (James Purnell) has made the following Statement.
Subject to parliamentary approval of the necessary supplementary estimate, the Department for Work and Pensions departmental expenditure limit will increase by £60,847,000 from £7,643,047,406 to £7,703,894,406 and the administration budget will decrease by £88,000 from £5,816,364,000 to £5,816,276,000.
Within the departmental expenditure limit change, the impact on resource and capital is as set out in the following table:
Voted Non-voted Total Voted Non-voted Total Resource 142,825 -117,913 24,912 6,592,712 1,165,437 7,758,149 of which: Administration 104,812 -104,900 -88 5,815,366 910 5,816,276 Near-cash 97,825 -117,913 -20,088 6,336,342 1,214,095 7,550,437 Capital 35,439 496 35,935 99,219 891 100,110 Depreciation1 - - - -153,023 -1,342 -154,365 Total 178,264 -117,417 60,847 6,538,908 1,164,986 7,703,894
1 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 departmental expenditure limit arises from:
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(i) A Machinery Of Government transfer of the Disability Rights Commission (sponsored by the Department for Work and Pensions) to the Commission for Equality and Human Rights (sponsored by Government Equalities Office).
(ii) The Disability Rights Commission is an executive non-departmental public body. The resource departmental expenditure limit transactions were a reduction in voted administration of £88,000 (near-cash) and a reduction in non-voted other current £20,000,000 (near-cash).
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(iii) A drawdown of £45,000,000 other current end of year flexibility to support non-cash expenditure.
Capital Departmental Expenditure Limit
The change in the capital departmental expenditure limit arises from:
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(iv) A budget transfer from the Northern Ireland Executive of £4,935,000 in respect of expenditure incurred by the Pension Transformation Programme.
(v) A drawdown of £31,000,000 end of year flexibility to support expenditure on the Pensions Change Programme.
Administration Costs Limit
The movement in the administration cost limit arises from the changes to the resource departmental expenditure limit as noted at items i and ii above.
Movements in Non-Voted Resource Expenditure
The changes in non-voted resource expenditure arise from the changes to the resource departmental expenditure limit as noted at items i and ii above. In addition the following adjustments:
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(vi) A reduction in non-voted resource expenditure of £104,900,000 offset by an increase in voted resource expenditure of £104,900,000 in respect of the allocation of the departmental unallocated provision to support the Child Support Agency Operational Improvement Plan.
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(vii) An increase in non-voted expenditure of £1,461,000 offset by a decrease in voted expenditure of £1,461,000 in respect of increased spend of Working Ventures (UK) Limited.
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(viii) An increase in non-voted expenditure of £244,000 offset by a decrease in voted expenditure of £244,000 in respect of increased spend of the Pensions Advisory Service.
(ix) An increase in non-voted expenditure of £189,000 offset by a decrease in voted expenditure of £189,000 in respect of decreased spend of the Pensions Ombudsman.
(x) A reduction in non-voted expenditure of £839,000 offset by an increase in voted expenditure of £839,000 in respect of decreased spend of the Pensions Regulator.
(xi) An increase in non-voted expenditure of £6,532,000 offset by a decrease in voted expenditure of £6,532,000 in respect of planned expenditure for the Personal Accounts Delivery Authority.
(xii) A reduction in non-voted expenditure of £600,000 offset by an increase in voted expenditure of £600,000 in respect of an adjustment to the classification of spend for Better Government for Older People.
Movements in Non-Voted Capital Expenditure
The changes in non-voted capital relate to the following adjustments:
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(xiii) An increase in non-voted expenditure of £5,000 offset by a decrease in voted expenditure of £5,000 in respect of increased spend of the Pensions Advisory Service.
(xiv) An increase in non-voted expenditure of £17,000 offset by a decrease in voted expenditure of £17,000 in respect of increased spend of the Pensions Ombudsman.
(xv) An increase in non-voted expenditure of £474,000 offset by a decrease in voted expenditure of £474,000 in respect of increased spend of the Pensions Regulator.