§ Mr. Burtasked the Secretary of State for Social Services what has been the cost of the dispute at the Newcastle central office of his Department.
§ Mr. FowlerWe estimate that additional administrative costs in 1984–85 arising from the dispute and the recovery programme will be some £143 million, representing mainly additional payments to the Post Office and the costs of extra manpower and overtime in local and central social security offices and in unemployment benefit offices. These costs will be offset to some extent by administrative savings elsewhere; the excess will be charged to the Reserve.
The greater part of the costs will be recovered from the national insurance fund, and some allowance was made for this in the estimates given in the report by the Government Actuary on the draft of the Social Security (Contributions, Re-rating) (No. 2) Order 1984 (Cmnd. 9386). In addition, subject to parliamentary approval of the necessary Supplementary Estimate, the cash limit for DHSS administrative and miscellaneous services Class XII, Vote 5, will be increased from £720,108,000 by £23,474,000 to £743,582,000.