Departmental Expenditure Limit (Hansard, 5 November 1999)

§ Mr. Wills

Subject to parliamentary approval of the necessary Supplementary Estimates for Class I, Vote 1 (Department for Education and Employment: programmes and central services) and Vote 3 (the Employment Service), the Departmental Expenditure Limit (DEL) for 1999–2000 (excluding Welfare to Work) will be increased by £120,664,000 from £15,671,526,000 to £15,792,190,000.

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This overall increase is made up of DEL increases on Votes 1 and 3 of £122,047,000 and £28,617,000 respectively and a decrease of £30,000,000 in non-voted expenditure. As a result, the Voted element of the Departmental Expenditure Limit (excluding Welfare to Work) will be increased by £150,664,000 from £14,396,974,000 to £14,547,638,000 and the non-Voted element will he reduced by £30,000,000 from £1,274,552,000 to £1,244,552,000.

The changes in Vote 1 are the result of the take up of £73,800,000 of the end-year flexibility entitlement announced by the Chief Secretary to the Treasury on 27 July 1999, Official Report, column 393; transfers of £1,425,000 from Class II, Vote 2 (Department of Health) as their contribution to the Healthy Schools programme, of £4,800,000 from Class II, Vote 1 (Department of Health) for the Tomlinson merger of Kings College and the United Medical and Dental School, of £957,000 from the Students Awards Agency for Scotland for changes in the funding of Oxbridge colleges, of £2,122,000 from Class XVII, Vote 1 (Property Advisers to the Civil Estate) relating to Qualifications and Curriculum Authority premises, and of £8,943,000 from Class I, Vote 3 (the Employment Service) for Key Stage 2 revision classes, National trainees and Employment Zones; and the draw down of £30,000,000 from the Department's non-Voted Departmental Unallocated Provision (DUP) for Adult Basic Skills and Excellence in Cities.

The Employment Service provision has been increased by the take up of £18,022,000 under the capital, £11,300,000 under the running costs and £1,000,000 under the other current end-year flexibility schemes as announced by the Chief Secretary to the Treasury on 27 July 1999, Official Report, column 393; the transfer of £6,631,000 from Class XII, Vote 3 (Department of Social Security: administration) in respect of work undertaken on behalf of the Benefit Agency and the transfer of £607,000 from Class XVII, Vote 1 (Cabinet Office: administration) to cover the transfer of the lease for 102, New Street, Birmingham; offset by the transfer of £8,943,000 to Vote 1.

The Departmental running costs limit (excluding Welfare to Work) will be increased by £18,538,000 from £1,042,210,000 to £1,060,748,000 as a result of the take up of £11,300,000 of end-year flexibility and the transfers of £6,631,000 from the Department of Social Security and £607,000 from the Cabinet Office. The Supplementary estimates also include a transfer of £128,000 of running costs from Vote 3 to Vote 1 which does not affect the running costs limit.

The Department's Welfare to Work provision is being increased by £38,557,000 from £1,349,816,000 to £1,388,373,000. The increase is made up of changes on Votes 1 and 3 of £39,987,000 and -£1,430,000 respectively. The change on Vote 1 is as the result of the take up of £38,654,000 of end-year flexibility, and transfers of £1,351,000 from Vote 3 and of £18,000 to Class XII, Vote 3 (Department of Social Security: administration) to cover the salary costs of staff supporting the New Deal project. The change on Vote 3 is made up of the transfer of £1,351,000 to Vote 1 and transfers of £134,000 to Class XIV, Vote 1 (Welsh Office) to cover costs of monitoring New Deal training in Wales 358W and of £55,000 from Class XII, Vote 3 (Department of Social Security: administration) for work on the New Deal for the Disabled Innovative Scheme.

The Departmental Welfare to Work running costs limit will be decreased by £378,000 from £162,699,000 to £162,321,000 as a result of the transfer from Vote 1 of £18,000 to the Department of Social Security and the transfers from Vote 3 of £281,000 to Vote 1 for Inspection of New Deal Providers, of £134,000 to the Welsh Office and of £55,000 from the Department of Social Security. The Supplementary estimates also include a transfer of £1,070,000 of Welfare to Work running costs from Vote 3 to Vote 1 which does not affect the running costs limit.

The increases are the result of transfers or will be charged to the Reserve and will not therefore add to the planned total of public expenditure.