HC Deb 27 February 2001 vol 363 cc596-7W
Ms Bridget Prentice

To ask the Secretary of State for Social Security what proposals he has to amend his Department's expenditure limit and running cost limit for 2000–01. [151777]

Mr. Rooker

Subject to parliamentary approval of the necessary Supplementary Estimate for Class XII, Vote 3, the Department of Social Security Departmental Expenditure Limit for 2000–01 will be increased by £66,361,000 from £3,590,339,000 to £3,656,700,000.

The increase is the net effect of additional Comprehensive Spending Review funding of £30,000,000 (running costs), and an increase of £20,000,000 (running costs) for the additional costs associated with the winter fuel payments. Other changes result from a net transfer of £14,315,000 (running costs), mainly for the administration costs of the ONE project, offset by a corresponding reduction on Class I, Vote 3 (Employment Service), a transfer of £1,334,000 (running costs) for expenditure on New Deal for Communities, offset by a corresponding reduction on Class III, Vote 1 (Housing, construction, regeneration, regional policy, planning and countryside and wildlife, England), a transfer of £1,065,000 (running costs) for the cost of collecting expenses associated with road traffic accidents, offset by a corresponding reduction on Class II, Vote 1 (Hospital, community health, family health and related services, England), a transfer of £200,000 (running costs) towards the administrative costs of the Teenage Pregnancy Unit, offset by a corresponding increase on Class II, Vote 2 (Department of Health administration, miscellaneous health and social services, England), a transfer of £99,000 (running costs) towards the administrative costs of making winter fuel payments, offset by a corresponding increase in Department of Health and Social Services (Northern Ireland) and an increase of £173,000 (running costs) for the cost of collecting expenses associated with road traffic accidents in Scotland and Wales. There is also an increase of £7,206,000 (running costs) associated with services provided to other Government Departments on a repayment basis, an increase of £7,178,000 (running costs) arising from increased payments of Value Added Tax on contracted out services, an increase of £500,000 (running costs) associated with expenditure on sub-let accommodation, a reduction of £1,289,000 (running costs) following a reclassification to other current expenditure and an increase of £1,081,000 (other current expenditure) arising from increased secondments. Appropriation in Aid increased by £32,389,000.

Changes in the Welfare to Work provision arise from an increase of £1,276,000 in the administration costs of measures to help unemployed people move from Welfare to Work, of which £776,000 is under the End Year Flexibility Scheme as set out in Table 7 of the Public Expenditure Outturn White Paper, Cm 4812, published on 18 July 2000, an increase of £1,212,000 in the administration costs of measures to help people with a disability or long term illness move into or remain in work, a transfer of £156,000 towards the cost of the innovative scheme lead by the Prince's Trust in respect of the New Deal for Disabled People, offset by a corresponding increase on Class 1, Vote 3 (Employment Service) and a transfer of £306,000 towards the administrative costs of New Deal for Partners of Unemployed People, offset by a corresponding reduction on Class I, Vote 3 Employment Service.

As a result of these changes and the reclassification of £6,500,000 to running cost related receipts the running cost limit of this Department will be increased by £58,799,000 from £3,219,522,000 to £3,278,321,000 and the running costs limit of the Welfare to Work programme will be increased by £2,638,000 from £13,996,000 to £16,634,000.

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.