The Department for Education and Employment has an entitlement to end-year flexibility on running costs of £94.9 million. This amount comprises underspends from 1995–96 and previous years.
The 1995–96 underspend was £55 million. Of this amount, £36 million was the result of reducing work loads in the Employment Service, largely because of falling unemployment.
The main factors giving rise to the balance of the 1995–96 underspend were payments falling due later than expected and the early achievement of some efficiency savings planned for 1996–97.