§ Mr. Connarty
To ask the Secretary of State for Social Security what changes will be made to his Department's Departmental Expenditure Limit and running costs limit for 2000–01. 
§ Mr. Rooker
Subject to parliamentary approval of the necessary Supplementary Estimate for Class XII, Vote 2 and Class XII, Vote 3, the Department of Social Security Departmental Expenditure Limit for 2000–01 will be increased by £399,594,000 from £3,190,745,000 to £3,590.339,000.
The increase of Class XII, Vote 3 is the net effect of additional Comprehensive Spending Review funding of £86,000,000 (running costs), an increase of £112,000,000 (running costs) associated with the move to ACT as the method of payment for all benefits, a take up of £40,026,000 (running costs) from the Departmental Unallocated Provision (which will not change the gross running costs limit), an increase of £37,946,000 (running costs) and £1,118,000 capital under the End Year Flexibility Scheme as set out in Table 7 of the Public Expenditure Out-turn White Paper Cm 4812 published on 18 July, an increase of £6,670,000 (running costs) for the administration costs of additional pensions work, an increase of £18,500,000 for the administrative costs arising from Budget 2000 measures, an increase of £9,000,000 (running costs) resulting from the Debt Recovery Scheme, an increase of £6,000,000 (running costs) arising from initiatives contained in the Grabiner report, an increase of £4,320,000 (running costs) associated with the Civil Service Modernisation programme, an increase of £750,000 (running costs) towards the administrative costs of ONE, an increase of £75,000,000 (capital) from the Welfare Modernisation Fund to help speed up IT modernisation, and an increase of £11,542,000 (capital) arising from the proceeds of a development gain under the PRIME initiative.
Other changes result from a transfer of £2,374,000 (running costs) towards the administrative costs of Decision Making and Appeals offset by a corresponding increase on Class I, Vote 3 (Employment Services), a transfer of £1,199,000 (running costs) and £1,328,000 capital for the Resettlement Programme in Scotland, offset by a corresponding increase in the Scottish Executive, a transfer of £400,000 (capital) for expenditure on the London Rough Sleepers Unit, offset by a corresponding increase on Class III, Vote 1 (Housing, 290W construction, regeneration, regional policy, planning and countryside and wildlife, England) and a transfer of £11,000 (running costs) in respect of Better Government for Older People, offset by a corresponding reduction on Class III, Vote 2 (Planning, roads, local transport and vehicle safety), (£6,000) and Class XVII, Vote 1 (Cabinet Office: administration) (£5,000).
There is also an increase of £20,970,000 (running costs) associated with services provided to other Government Departments on a repayment basis, an increase of £47,021,000 (running costs) arising from increased payments of Value Added Tax on contracted-out services, an increase of £15,153,000 (running costs) associated with expenditure on sub let accommodation and an increase of £168,000 to meet the costs of overseas medical examinations. Appropriation in Aid increases by £169,152,000.
Changes in the Welfare to Work provision arise from an increase of £975,000 under the End Year Flexibility Scheme as set out in Table 7 of the Public Expenditure Out-turn White Paper Cm 4812 published on 18 July, a reduction of £7,367,000 offset by a corresponding increase on Class 1, Vote 3 (Employment Service), an increase of £15,000 offset by a corresponding reduction on Class 1, Vote 1 (Department for Education and Employment: programmes and central services), an increase of £2,308,000 for costs associated with pilots and innovative schemes arising from the programme of measures to help people with a disability or long term illness move into or remain in work and an increase of £2,313,000 for expenditure on work focused interviews relating to the measures to help Lone Parents move from Welfare to Work.
As a result of these changes the running costs limit of this Department will be increased by £277,792,000 from £2,941,730,000 to £3,219,522,000 and the running costs limit of the Welfare to Work programme will be reduced by £1,756,000 from £15,752,000 to £13,996,000.
Changes to Class XII, Vote 2 arise from an increase of £37,430,000 under the End Year Flexibility Scheme as set out in Table 7 of the Public Expenditure Out-turn White Paper Cm 4812 published on 18 July and an increase of £2,500,000 associated with the administration cost of Budget 2000 measures.
Increases will be offset by transfers or a charge to the DEL Reserve and will not, therefore, add to the planned total of public expenditure.