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Department for Work and Pensions: Winter Supplementary Estimate

Volume 706: debated on Thursday 4 December 2008

Statement

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

Subject to parliamentary approval of the necessary supplementary estimate, the Department for Work and Pensions departmental expenditure limit will increase by £3,752,000, from £7,834,033,000 to £7,837,785,000, and the administration budget will increase by £1,292,000, from £5,692,537,000 to £5,693,829,000.

Within the departmental expenditure limit change, the impact on resource and capital is as set out in the following table:

Change £kNew Departmental Expenditure Limit £k

Voted

Non-voted

Total

Voted

Non-voted

Total

Resource

78,559

-77,307

1,252

6,381,492

1,508,147

7,889,639

of which:

Administration

1,292

0

1,292

5,643,829

50,000

5,693,829

Near-cash

497

0

497

6,111,830

1,615,932

7,727,762

Capital

3,210

0

3,210

78,113

426

78,539

Depreciation1

-710

0

-710

-128,798

-1,595

-130,393

Total

81,059

-77,307

3,752

6,330,807

1,506,978

7,837,785

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 element of the departmental expenditure limit arises from:

Request for Resources 2

(i) A budget transfer of £569,000 to the Ministry of Justice to fund training relating to the introduction of employment support allowance.

(ii) A budget transfer of £3,500,000 to the Ministry of Justice to fund expected increases in consent orders through the courts for child maintenance, following repeal of Section 6 of the Child Support Act 1991.

Request for Resources 5

(iii) A Machinery of government transfer of £1,030,000 from the Cabinet Office in respect of the Electronic Delivery Team. The Electronic Delivery Team is responsible for the Government Gateway.

(iv) A budget transfer of £45,000 to HM Treasury to support the work of the Centre of Expertise in Sustainable Procurement.

(v) A budget transfer of £40,000 to the Cabinet Office to support the work of the Government Secure Zone.

(vi) A budget transfer of £376,000 from the Cabinet Office to enable the department to meet additional costs arising from the expansion of services provided by the Office of the Parliamentary Counsel.

(vii) A budget transfer of £4,000,000 from the Department for Children, Schools and Families in respect of the costs of Caxton House, for which this department has taken over management responsibility and agreed the transfer of the property to Land Securities Trillium.

Capital Departmental Expenditure Limit

The change in the capital element of the departmental expenditure limit arises from:

Request for Resources 2

(viii) A Machinery of government transfer of £210,000 from the Department for Environment, Food and Rural Affairs to the Health and Safety Executive in respect of the Pesticides Safety Directorate. This transfer occurs as a result of the Hampton review on regulatory inspections and enforcement.

Request for Resources 5

(ix) Budget transfers of £2,000,000 from the Department for Children, Schools and Families and £1,000,000 from the Department for Communities and Local Government relating to the work of Government Connect. Government Connect is a strategic partnership between national and local government that provides a secure IT infrastructure between central government departments and local authorities.

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), (vi) and (vii) above.

Movements in non-voted expenditure

The reduction in non-voted resource expenditure is due to a reduction in the cost of administering national insurance fund benefit payments. This reduction is offset by an increase in voted resource due to an equivalent reduction in income from HM Revenue and Customs to meet the cost of administering National Insurance Fund benefit payments:

Request for Resources 2

(x) a reduction in non-voted resource expenditure of £32,415,000 offset by an increase in voted resource expenditure of £32,415,000.

Request for Resources 3

(xi) a reduction in non-voted resource expenditure of £25,448,000 offset by an increase in voted resource expenditure of £25,448,000.

Request for Resources 5

(xii) A reduction in non-voted resource expenditure of £19,444,000 offset by an increase in voted resource expenditure of £19,444,000.