§ Kali MountfordTo ask the Secretary of State for Social Security if he will make a statement on changes in the(a) cash limits and (b) running costs of his Department for 1998–99. [71249]
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§ Mr. TimmsSubject to the Parliamentary approval of the necessary Supplementary Estimate the cash limit for Class XII Vote 3 will be increased by £71,694,000 from £1,972,331,000 to £2,044,025,000.
The Estimate takes account of increased requirements of £12,700,000 (running costs) for the administration costs associated with the Winter Fuel payments, £12,000,000 (running costs) towards the cost of the new payment card system, £175,000,000 (running costs) under the end year flexibility scheme as announced by my right hon. Friend, the Chief Secretary to the Treasury, on 14 July 1998, Official Report, columns 131–36 and an increase of £4,078,000 (capital) under the capital end year flexibility scheme.
Other changes result from a reduction of £6,798,000 (running costs) arising from the recalculation of JSA implementation costs offset by a corresponding increase on Class IX, Vote 3 (Education and Employment), a reduction of £ 102,000 (running costs) towards the cost of the National Childcare Strategy, offset by a corresponding increase on Class IX, Vote 1 (Education and Employment), a reduction of £415,000 (running costs) which represents an aggregate of a number of small transfers offset by a corresponding increase on Class VII, Vote 1 (Lord Chancellor's and Law Officers' Departments), an increase of £1,191,000 (running costs) offset by a corresponding reduction on Class XI, Vote 1, Class XIII, Vote 4 and Class XIV, Vote 4, a reduction of £310,000 (running costs) for costs relating to Decision Making and Appeals offset by a corresponding increase on Class IX Vote 3 (Education and Employment), an increase of £1,455,000 (running costs) in connection with the cost implication for DSS of the Scotland Bill offset by a corresponding reduction on Class XIII, Vote 6 (Scottish Office Administration), a reduction of £60,000 (running costs) for the expenses of the Student Grant Unit offset by a corresponding increase on Class XI, Vote 1 (Department of Health) and an increase of £334,000 (capital) as a result of a transfer from Class V, Vote 1 (Trade and Industry and Export Credit Guarantee Department). Further transfers arise from an increase in running cost cover of £196,000 for services provided to Department of Health and Social Services (Northern Ireland), £200,000 for expenses associated with the provision of legal services provided to Department of Health and £179,000 for services provided to other Government Departments. There is also a reduction of £1,900,000 (running costs) arising from the Machinery of Government change to transfer responsibility for the Women's Unit to Cabinet Office (Class XVII, Vote 1).
There is an increase of £60,765,000 in running costs to take account of the reclassification of VAT refunds on contracted out services and an increase of £451,000 in the running cost limit due to a shortfall in running cost related receipts. Also an increase of £11,168,000 resulting from the virement from capital expenditure to running costs. Cash Limit changes of £190,195,000 arise from an increase in appropriations in aid and a change to the net running cost controlled area of the Vote.
Changes in the Welfare to Work running cost provision arise from a reduction of £70,000 for costs associated with the Lone Parent project team costs offset by a corresponding increase on Class IX, Vote 1 (Education and Employment), an increase of £1,133,000 in the administrative costs associated with measures to help people with a disability or long term illness move into or 389W remain in work and a requirement of £413,000 for the costs relating to the programme for partners of the unemployed.
As a result of these changes the running cost limit of this Department (within the Control Total) will be increased by £204,955,000 from £2,975,679,000 to £3,180,634,000 and the running cost limit for the Welfare to Work programme (outside the Control Total) will be increased by £1,476,000 from £27,620,000 to £29,096,000.
The cash limit on Class XII, Vote 1 has been reduced by £10,350,000 from £22,200,000 to £11,850,000 as a result of a transfer of resources to Class IX, Vote 3 (Education and Employment) for costs associated with the Welfare to Work initiative for Lone Parents.
Increases will be offset by transfers or charged to the Reserve and will not therefore add to the planned total of Public Expenditure.