HC Deb 28 November 2001 vol 375 cc894-6W
Mr. Laxton

To ask the Secretary of State for Work and Pensions what plans he has to change the(a) departmental expenditure limit and (b) administration costs limit for 2001–02. [19700]

Mr. Nicholas Brown

Subject to Parliamentary approval of the necessary supplementary estimate, the Department for Work and Pensions Departmental Expenditure Limit will be increased by £3,338,291,000 from £3,964,124,000 to £7,302,415,000 and the administration cost limit by £1,336,666,000 from £3,566,177,000 to £4,902,843,000. Within the DEL change, the impact on resources and capital are set out in the following table:

Resources Capital
Change 3,230,537 107,754
New DEL 7,091,614 210,801
Of which: voted 5,843,935 121,461
Non voted 1,247,679 89,340

The change in the resource element of the DEL arises from:

  1. (i) the transfer of the Employment Service from the Department for Education and Skills (£2,191,389 of which £1,239,729 are administration costs), the transfer of certain functions previously undertaken by Department for Education and Employment (£225,468,000 of which £18,322,000 are administration costs) and the transfer of the War Pensions Agency to Ministry of Defence (£35,799,000 of which £36,466,000 are administration costs) as announced by the Prime Minister on 8 June.
  2. (ii) take up of end year flexibility entitlements (£178,291,000 of which £136,213,000 are administration costs) announced by the Chief Secretary to the Treasury in Table 6 of the 2000–01 Public Expenditure Outturn White Paper (Cm 5243).
  3. (iii) an increase of £4,612,000 (administration costs) in provision from the Employment Opportunities Fund in DEL for expenditure on the new deals for the unemployed and sick and disabled.
  4. (iv) an increase of £78,000 (administration costs) from the repayment arrangement with Department of Trade and Industry for the cost incurred by Department for Work and Pensions on the Post Office General Practitioners pilot.
  5. (v) a net reduction of £1,302,000 (administration costs) due to a transfer to the Scottish Executive of the Resettlement programme in Scotland (£1,318,000) and from the Scottish Executive (£16,000) towards the cost of the Family Resources Survey.
  6. (vi) an increase in provision of £509,000 (administration costs) following a transfer from Department of Health towards the project costs of preserved rights cases and care direct.
  7. (vii) a net reduction of £4,679.000 (administration costs) due to a transfer to Inland Revenue of Programme Protection Funding (£50,000), for the cost of work being performed by Inland Revenue to assist the Benefits Agency clearing a backlog of CA 5400 work (5£00,000), the cost of work being performed by Inland Revenue on NIRS development work (£5,000,000) and a transfer of £1,571,000 from Inland Revenue for accommodation office services at Newcastle.
  8. (viii) an increase of £1,229,000 (administration costs) from the reserve under the Debt Recovery Incentive Scheme.
  9. (ix) an increase of £362,000 (administration costs) from an allocation to the department from the evidence based policy fund.
    10. 896W
  10. (x) a net reduction of £165,000 due at transfer of £190,000 to Department for Transport, Local Government and the Regions for Rough Sleepers and a transfer from Department for Transport, Local Government and the Regions of £25,000 (administration costs) for Local PSAs.
  11. (xi) a transfer of £200,000 (administration costs) from Lord Chancellor's Department to meet the cost of work being provided to them by the departmental central index.
  12. (xii) an increase of £20,000,000 (administration costs) from the Employment Opportunities Fund to enable Employment Services to maintain the present office network during the review of the Jobcentre Plus future network.
  13. (xiii) an increase in provision of £117,400,000 (administration costs) from the Employment Opportunities Fund to set up the Jobcentre Plus Pathfinder offices.
  14. (xiv) a reduction in provision of £1,200,000 as result of a transfer to Department for Education and Skills to cover the cost of work performed by the Adult Learning Inspectorate for Employment Services.
  15. (xv) an increase of £78,000 in appropriations in aid.
  16. (xvi) a net reduction in Employment Opportunities Fund requirements of £8,439,000 following a reapportionment of expenditure within and between RfRs.
  17. (xvii) as a result of the machinery of government changes there is an increase in the Department for Work and Pensions Departmental Expenditure Limit of £542,661,000 which is non-Voted.
  18. (xviii) administration cost limit changes arise from a reduction of £138,928,000 due to a reclassification of Employment Opportunities Fund expenditure and an increase of £20,638,000 in administration costs related appropriations in aid.

The change in the capital element of the DEL arises from:

  1. (i) the transfer of the employment service from the Department for Education and Skills (£12,550,000) and the transfer of the War Pensions Agency to Ministry of Defence (£300,000) as announced by the Prime Minister on 8 June.
  2. (ii) take up of end year flexibility entitlements of £81,200,000 announced by the Chief Secretary to the Treasury in Table 6 of the 2000–01 Public Expenditure Outturn White Paper (Cm 5243).
  3. (iii) an increase in provision of £4,800,000 from the Employment Opportunities Fund to set up the Jobcentre Plus Pathfinder offices.
  4. (iv) an increase of £2,000,000 from the Capital Modemisation Fund for Supported Employment.
  5. (v) as a result of the machinery of government changes there is an increase in the Department for Work and Pensions Departmental Expenditure Limit of £7,504,000 which is non-Voted.

All of these changes will either be offset by transfers or charged to the reserve and will not therefore add to the planned total of public expenditure.