Written Statement of 11 December 2003

HOME DEPARTMENT

  Police Pension Scheme
  The Secretary of State for the Home Department (Mr. David Blunkett)
  I have today published a consultation paper which sets out proposals for a new police pension scheme for future entrants. We intend that the new scheme should be in place by no later than April 2006.

  The aim is to produce a modernised, more flexible scheme for a twenty first century police service. The proposed new scheme would include benefits such as a full pension of half final salary plus a lump sum of four times' pension after 35 years, life-long survivor benefits extended to unmarried and same sex partners as well as spouses, and a lower contribution rate of between 9 to 9.5 per cent. of pensionable pay. In line with Government policy on pension ages in future the new scheme would have a minimum pension age of 55 and a deferred pension age of 65 for those leaving the service before the age of 55.

  Currently serving officers who are in the existing scheme will remain there unless they opt to transfer to the new scheme. As members of the current scheme they will still be able to retire after 25 or more years' service with a pension age unaffected by the proposed changes. However, younger serving officers who leave the service early might be affected by Government proposals to apply the planned rise in the normal public service pension age from 60 to 65 to some existing staff. Any future move to raise the deferred pension age of currently serving officers to 65 would not be made before there had been a full debate about how this might be implemented across the public sector, and would apply only to pensionable service falling after the date of change.

  Government plans to raise the minimum pension age to 55 in April 2005 will not affect currently serving officers who continue in service until retirement under the present police pensions scheme. However, the consultation document discusses the arrangements that should be made for officers who enter the service between April 2005 and the start date of the new scheme, if such a time lag occurs.

  The consultation document also sets out Government plans for reforming the system of financing police pensions with a view to making expenditure on paying pensions to retired officers more predictable and more clearly separated from operational costs.

  We seek a well-informed and constructive debate on the proposed elements of a new scheme for future entrants to the police service before we come to our final decision on how to take police pensions forward into the twenty-first century.
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  Copies of the consultation document are available in the House library and on the Home Office web-site www.homeoffice.gov.uk/ Comments have been requested by 11 March 2004.

  Community Capacity Building
  The Parliamentary Under-Secretary of State for the Home Department (Fiona Mactaggart)
  A Home Office consultation document on the Review of support for community groups and community capacity building in England is being published online today. The consultation document outlines the results of the review on mapping existing Government activity in the field of community capacity building and makes proposals for change. The consultation document asks questions to inform how Government might take forward actions to implement change.

  The Government aim is to unify and make more effective the planning, resourcing and evaluating of provision for building the capacity of individuals and groups in communities to participate in community activity and contribute to a wide range of social objectives.

  The review focused on two main areas, and the proposals for change outlined in the consultation document relate to the:
  provision of support to community groups and community capacity building activities at community level, whether that be a neighbourhood, locality, parish or across a community of interest;
  policies and practices that govern the way that central, regional and local government supports community engagement, and thus civil renewal, through community capacity building initiatives and programmes.

  Copies of the consultation document are available in the House Library and on the Home Office http://www.homeoffice.gov.uk/docs2/ccbrconsult.pdf website. We would welcome views on the proposals and questions outlined in the consultation document.

  A partial regulatory impact assessment is included with the consultation document.

  Voluntary/Community Sector
  The Secretary of State for the Home Department (Mr. David Blunkett)
  I am pleased to announce that arrangements for the implementation of the futurebuilders fund for voluntary and community sector have now been completed. The fund will be transferred to the active communities unit in the Home Office from HM Treasury. Futurebuilders is a £125 million investment over three years, mainly for one-off investment funding. We expect funding to come on stream towards the end of this financial year. The vast majority of the funds will be available in the next two financial years. The availability of funding will be publicised and organisations will be able to apply.

  The fund will be aimed at helping individual voluntary and community sector organisations strengthen the scale and scope of their contribution to the delivery of public services. This fund complements the £80 million already being made available to support the implementation of a strategy for the development and support of voluntary and community organisations being jointly developed by government and the sector.

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  Over £200 million is therefore being invested between now and 2006 to building capacity within communities.

  This fits with our wider strategy to promote and develop volunteering and mentoring for all ages. We will shortly be investing funding in a number of volunteering initiatives including work with older volunteers.

  This will strengthen our communities and help ensure that they are better able to shape and deliver the services they need and to engage in volunteering and mentoring.

HOUSE OF COMMONS

  Parliamentary Pay and Allowances
  The Leader of the House of Commons (Mr. Peter Hain)
  In 1996 the Senior Salaries Review Body recommended that Parliamentary pay and allowances should be reviewed every three years, commencing in 2000. In line with this recommendation my right hon. Friend, the Prime Minister has recently written to John Baker, the Chairman of the Senior Salaries Review Body asking the body to report next year.

TRADE AND INDUSTRY

  BNFL
  The Secretary of State for Trade and Industry (Ms Patricia Hewitt)
  In July this year, I announced that DTI and BNFL would conduct a joint review of the company's future strategy, and that recommendations would he made to the BNFL Board and Ministers in the Autumn.

  It was decided that a review was necessary to evaluate alternative strategies, following on from the decision to rule out a flotation of the company after the Nuclear Decommissioning Authority had been formed in April 2005. The review has been conducted against the framework of the Government's policy objectives set out in the White Paper "Managing the Nuclear Legacy—a Strategy for Action" and in particular the need to develop a competitive market for nuclear site management. It has been driven by the Government's overriding priority to ensure safe, efficient and effective clean-up at Sellafield and other civil nuclear sites. One of the key objectives of the review was to focus BNFL's activities more closely on the priority of UK clean-up.

  As announced in the White Paper, the NDA will take over strategic responsibility for the discharge of BNFL's UK nuclear liabilities from April 2005, subject to Parliamentary approval of the Energy Bill. A new parent company will be established at that point to hold those parts of BNFL that will not become the NDA's responsibility.

  The Government does not intend that the new parent company and its holdings will be privatised as a whole by flotation. We have also agreed that the sale of the entire group as an integrated structure is not an objective. However, proposals for involving the private sector in individual businesses will be examined on their merits, consistent with the Government's overall objectives of focusing on a more competitive market in UK clean-up, maximising the value and limiting the risk
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  of BNFL's businesses to taxpayers; while ensuring that safety, security and environmental standards are maintained.

  Other key conclusions are:
  The principal focus of the new parent company will be clean-up activities at UK sites.

  In the period up to the establishment of the NDA in April 2005, BNFL and its Board will continue to have responsibility for the safe and efficient running of its existing sites and for the financial performance of the company and its subsidiaries.

  At the same time as a new parent company is established in April 2005, a new group of subsidiary companies will be established which will have initial responsibility for managing clean-up and operations at BNFL's UK sites under transitional arrangements to be agreed with the NDA. These companies will have the chance to bid to continue managing these sites when the NDA introduces competition.

  Fuel manufacture will continue at the Springfields site, where clean-up activity is also underway. It will be established as a separate licensed entity, likely to be managed initially by Westinghouse, and with the NDA taking financial responsibility for the relevant decommissioning and clean-up liabilities.

  The vast majority of the existing BNFL UK workforce will continue to be employed by companies that operate current BNFL sites. Initially, the two largest site licensee companies will be British Nuclear Fuels plc (which will continue to have the licence for the Sellafield site) and Magnox Electric plc. Other employees will transfer into companies within the clean-up group.

  BNFL's existing Research and Technology facilities and a proportion of the personnel will remain with the site licensee companies. Other staff will transfer to a new Nuclear Science and Technology Service (NSTS) which will initially be a subsidiary of the new parent company and will deliver services on a commercial basis to the NDA, site licensee companies and third parties. These proposed arrangements for R & T are consistent with the Government's policy to keep the nuclear option open as set out in the White Paper "Our Energy Future—creating a low carbon economy".

  The BNFL Board, and from April 2005, the Board of the new parent company will manage the other businesses to deliver value and in a way that limits and controls risk to the UK taxpayer.

  In relation to the Westinghouse business, the Government has agreed with the BNFL Board that steps will be taken to enable the business to operate with greater financial independence from its parent, so that possibilities for private sector participation are opened up.

  Future strategy for the investment in the Urenco fuel enrichment business will take full account of the strategic significance of this business and of the UK's nuclear non-proliferation obligations.

  BNFL is seeking routes to reduce significantly its exposure to the US clean-up market.

  These proposals are designed to help deliver the policy objectives set out in the 2002 White Paper "Managing the Nuclear Legacy" and are entirely

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  consistent with our continuing commitment to keep the nuclear option open as set out in the 2003 Energy White Paper. They offer the best route towards both a more competitive market for UK clean-up, better value for taxpayers and a genuine opportunity for BNFL staff and management to continue to play a key role in meeting the challenge of nuclear clean-up.

  We are also very conscious of the need to consider the impact of the NDA proposals and BNFL's future strategy on local communities. This is why the legislation to establish the NDA will facilitate its involvement in social and economic activities to support them.

  We have sought to maximise the benefits from the establishment of the NDA to West Cumbria, for example:
  The headquarters of the NDA will be in West Cumbria.
  We have established a key project on UK nuclear skills in West Cumbria with the North West Development Agency
  Moreover, we are today setting out plans to establish a strategic taskforce for West Cumbria whose job it will be to plan and ensure the implementation of the social and economic regeneration of the area in light of decommissioning the Sellafield site.

  I am placing further details of the review outcome in the Library of the House.

  EU Regional Policy
  The Secretary of State for Trade and Industry (Ms Patricia Hewitt)
  On 17th September,Official Report, columns 53–54WS, I confirmed that the Government's proposed EU Framework for Devolved Regional Policy would form the basis of our negotiating position in Europe. The Government believe that the EU Framework offers the best model to reform EU regional policy in line with the principles of a flexible UK regional policy, ensuring that it is both effective and fair for all Member States.

  We also believe that our proposal provides a sustainable response to the challenge of EU Enlargement and that it will actively support the Lisbon agenda of higher productivity and employment. The Government are committed to promoting regional policy over the longer term and this proposal reflects the Government's strong and enduring commitment to decentralisation and devolution and to ensuring that economic disparities between our nations and regions are identified and addressed.

  In the consultation exercise the Government conducted earlier this year, most of those who commented on the overall aim for reform of EU regional and cohesion policy supported our key objectives. But many of the respondents felt they did not have enough information to make a proper judgment and requested further details on how the proposed approach would operate in practice. This statement aims to provide that further information, while recognising that we cannot provide a definitive blueprint at this stage. Details will inevitably change as negotiations progress. The statement refers to a more detailed paper that I have deposited in the Library of the House today.
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  OPERATION OF THE EU FRAMEWORK

  We envisage that the EU Framework would be established by agreement in the European Council of a set of high level, outcome-focused objectives which support the achievement of the Lisbon and Gothenburg agendas. Member States would then develop with their nations and regions, consistent with their respective constitutional arrangements or devolution arrangements, Devolved Strategies for Regional Policy which would be subject to a peer review process facilitated by the Commission. More details are given in section 1 of the accompanying paper.

  THE FINANCIAL GUARANTEE

  The Government's guarantee that the nations and regions of the UK will not lose out if the EU Framework approach is agreed is based upon the amount of Structural Fund receipts that could be expected if, in 2007, the current allocation system were applied but in the context of an enlarged EU. This is explored further in section 2 of the accompanying paper.

  POSSIBLE DELIVERY MECHANISMS

  The Government stressed in the consultation document that we want regional policy to respect devolution in Scotland, Wales and Northern Ireland, and in future possibly in some English regions, and to be locally led with decisions taken as close as possible to local people, thereby supporting civil renewal. We also wanted to retain the strengths of the Structural Funds, such as multi annual funding and partnership working, but achieve significantly simplified delivery mechanisms. The ways in which such delivery in support of Framework objectives might work must take into account current devolved and decentralised arrangements and the views of stakeholders.

  In addition to seeking reassurance about their future role in decision-making on regional policy, many respondents also wanted to be reassured that the agendas supported by the Structural Funds would continue to be supported through domestic funding under the proposed approach. This applied particularly in the areas of skills and employment, social inclusion and regeneration and for rural and urban areas. Although it is not possible now to say exactly what the domestic institutional arrangements will be in 2007, nor exactly how increased domestic funding would be distributed or on what it would be focused, the direction of our thinking on these areas is set out in section 3 of the accompanying paper. This focuses on arrangements in England given that, as outlined in the consultation document, Devolved Administrations would continue to devise and implement their own regional policies.

  LINKS BETWEEN EU REGIONAL POLICY REFORM AND OTHER EU POLICIES

  The UK Government is a firm advocate of the need to transfer more funding from Common Agricultural Policy (CAP) production support and income subsidy to the CAP rural development budget. The aims of CAP rural development to effectively assist in conversion of the EU agriculture industry to a more sustainable structure and to tackle the social, economic and environmental consequences in rural areas of change in the sector, and our objectives for EU and domestic regional policy, need to be mutually supportive. Among other things, this means that the range of instruments available at EU, national or regional level needs to make

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  a proper and well co-ordinated contribution to the Government's productivity agenda in rural areas as well as elsewhere. This is discussed further in section 4 of the accompanying paper.

  Since the Lisbon Council in March 2000, successive European Councils have called on Member States to
  "further their efforts to promote competition and reduce the general level of state aids."

  The Stockholm Council in March 2001 established the target that Member States should demonstrate a downward trend in state aid in relation to GDP by 2003. More recently, the Barcelona Council in March 2002 restated that aid should he directed to
  "horizontal objectives of common interest, including economic and social cohesion, and to target it to identified market failures. Less and better-targeted state aid is a key part of effective competition."

  The UK Government firmly supports these conclusions.

  In the context of regional policy, the Commission announced on 2 April 2003 that it would conduct a thorough review of its rules on regional state aid for the period after 1 January 2007. In line with the European Council conclusions on state aid, the UK will be seeking a modernised state aid system which is more efficient and which allows Member States to tackle the market failures which cause regional underperformance, while bearing down on distortive aids.

  Under an EU Framework, the objective of Structural Funds would be to aid development in the poorest Member States, while the state aid rules would allow all Member States to provide support to address regional and sub-regional/area underperformance, consistent with the need to ensure state aid discipline.

  EU BUDGET

  We believe that our proposal benefits all Member States by focusing scarce EU Budget resources where they will have the greatest effect. It also supports regional policy across the EU, by providing a shared policy framework for all Member States—whether recipients of funding or not—linked to the Lisbon goals and objectives. Our proposals, by providing a solution that is sustainable in the long-term (both for the Financial Perspective starting in 2007, and beyond), will bring lasting benefits shared by all Member States.

  The UK also believes that, like other elements of the budget, spending on regional policy should achieve a fair budgetary deal for the UK taxpayer. As a net contributor to the Structural and Cohesion Fund (SCF) budget, additional receipts from a larger SCF budget would only come at a net cost to the UK taxpayer, reducing the amount of potential funding available for UK regional policy. Further details on the budgetary aspects of reform are contained in section 5 of the accompanying paper.

  CONCLUSION

  The Government have already reformed domestic regional policy in England to enable all regions to reach their full potential, based on their indigenous strengths, and devolved substantial power to Scotland, Wales and Northern Ireland. If the Government is to meet its ambitious domestic goals, and if EU cohesion policy is to be both sustainable, effective and fair for all Member States, radical reform is needed. In particular, we believe that EU regional policy should be substantially devolved
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  and decentralised. The Commission has committed to examining in detail the options that have been put forward so far in its 3rd Cohesion report due next month and we await this analysis with interest. We, in turn, are committed to continuing to consult with domestic stakeholders and our EU partners as the debate develops with the aim of producing the best outcome for the new Member States, for Europe and for the nations and regions of the United Kingdom.

CABINET OFFICE

  Digital Television Policy Paper
  The Minister for the Cabinet Office and Chancellor of the Duchy of Lancaster (Mr. Douglas Alexander)
  A new policy framework for Digital TV, which has been developed by the Office of the e-Envoy within the Cabinet Office, has been published today.

  This new set of policies will provide guidance and co-ordination to central and local government in developing digital TV as a viable channel for delivering e-Government services to the consumers. It is the result of extensive work and consultation with key stakeholders across government, industry, and the public.

  The DTV channel is an important tool in contributing to the Government objective of delivering all services electronically by 2005, with high levels of take-up. Currently, more than 11 million households in the UK have DTV, and the numbers are growing. DTV gives people the opportunity to access electronic government services in new ways, using the unique interactive and informational features of the medium.

  The framework document encourages all tiers of government, industry, broadcasters and other leading bodies to work together on a co-ordinated approach to ensure DTV succeeds in delivering its potential.

  Copies have been placed in the Libraries of the House.

DEPUTY PRIME MINISTER

  Local Government Finance Settlement 2004–05
  The Minister for Local Government, Regional Governance and Fire (Mr. Nick Raynsford)
  Further to the Pre-Budget Statement made by my right hon. Friend the Chancellor of the Exchequer, I am today announcing the proposed allocation to English local authorities of an extra £340 million of revenue support grant for 2004–05.

  The Government are clear that it is right to provide this extra support to authorities to help them to improve public services. We are particularly conscious of the pressures for improvements in the areas of the environment and social services for children. The additional support will be provided as revenue support grant, which is not ring-fenced, and so can be used for any purpose.

  The increase in grant distributed by formula will now be 5.5 per cent. compared to 2003–04, on a like-for-like basis: overall grants to local authorities will increase by 7.1 per cent.
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  The floors and ceilings on grant increases will change for authorities with education and social services responsibilities, to 4 per cent. and 7.5 per cent. respectively. In some cases, however, authorities will receive more than 7.5 per cent. because we are continuing to provide support for increased capital investment outside the floors and ceilings system.

  For shire districts, the additional grant is sufficient to raise the floor to 3 per cent. so all districts will get an above inflation increase. There will be no effective ceiling for districts, giving grant increases of up to 12.2 per cent. for individual authorities.

  There will be no changes in floors or ceilings for police and fire authorities.

  This will mean that for the second year running, every local authority will get at least an above inflation increase, with many getting substantially more.

  Tables showing grant totals and the revised provisional allocation of formula grant to all English local authorities for 2004–05 have been placed in the Vote Office and are also available in the Libraries of both Houses.

  Given the scale of this change, the consultation period on our proposals will be extended and will now end on 9 January 2004. The House will then have the chance to debate the Government's final proposals in late January or early February. As is normal, the detailed allocations to individual authorities may still change as data on council tax base and capital allocations are updated.

  Given the scale of the investment in local services and the scope for efficiency improvements in local government, the Government believe next year local authorities must aim to deliver council tax increases in low single figures. Unreasonably large council tax increases will be neither justified nor acceptable.

  So the Government are prepared to use targeted capping powers next year if that proves necessary.

  When considering whether to cap authorities, the Government will look at a range of factors including the level and increase in the council tax and the level of the budget. In areas where there is a combined fire authority, budgets for 2004–05 will not be comparable with 2003–04 because the combined fire authority is precepting for the first time in 2004–05. The Office of the Deputy Prime Minister is today issuing a consultation document which sets out the proposed methodology and the notional budget figures as a result of this change. A copy of this will be made available in the Libraries of both Houses.

  Draft Fire and Rescue Framework 2004–05
  The Minister for Local Government, Regional Governance and Fire (Mr. Nick Raynsford)
  In June the Government published the White Paper, "Our Fire and Rescue Service". It set out a package of reforms designed to improve the service and to save more lives. Today the Office of the Deputy Prime Minister is publishing a draft fire and rescue national framework that will outline how to implement the White Paper's proposals. It sets out the Government's objectives for the Fire and Rescue Service and what Fire and Rescue Authorities should do to achieve these outcomes. It also sets out what the Government will do to improve the service and what support it will provide to Fire and 98WS
  Rescue Authorities. In due course, the expectations in the Framework will also help to shape the Audit Commission's fire and rescue Comprehensive Performance Assessment.

  The Framework is based on a partnership approach. The Government is committed to giving Fire and Rescue Authorities adequate support and flexibility to help them meet the specific needs of their local communities. For this reason we are initially issuing it in draft form and welcome comments and suggestions by 12 March 2004 both on the proposals in the draft Framework and on how to make the future versions as helpful and relevant as possible. We aim to publish the first National Framework in Spring 2004.

  The legislation announced in the Queen's speech will place the Framework on a statutory footing. It will require the Government to report to Parliament on the extent to which Fire and Rescue Authorities are acting in accordance with the National Framework and any steps the Government has taken to ensure that they do.

  We are also today publishing Mott MacDonald's most recent study into fire and rescue control rooms, and HM Fire Service Inspectorate's review of the subject. The study reinforced the report's conclusions that regional control rooms would significantly enhance national resilience. The Government is persuaded by the conclusions of the study and proposes to establish regional control rooms in England, including the one already established in London, working closely with Fire and Rescue Authorities through their Regional Management Boards. We have written to the Practitioners Forum asking for their views on our proposed approach.

  The Fire and Rescue Service is, rightly, widely admired for its professionalism and the dedication of its staff. The White Paper made clear, however, that it was also in need of urgent reform. Publication of the draft National Framework sets out the Government's expectations of the Service, what Fire and Rescue Authorities should do and the support the Government will provide. It demonstrates the Government's continued commitment, in partnership with Fire and Rescue Authorities, to driving down the number of fire deaths and injuries, improving fire and rescue services and saving more lives.

  Copies of the Draft Fire and Rescue National Framework 2004/05, the full Mott MacDonald report, the summary of the Mott MacDonald report, and the HM Fire Service Inspectorate review are available in the libraries of both Houses.

CULTURE, MEDIA AND SPORT

  BBC Charter
  The Secretary of State for Culture, Media and Sport (Tessa Jowell)
  The BBC's Royal Charter—the seventh in the history of the corporation—is due to expire on 31 December 2006. I have today launched the first phase of a process of review that will result in a strong BBC, independent of Government, from the end of the current Charter and beyond. That period will be marked by continuing rapid advances in technology, and changes in society, culture and practice—the way people receive and make use of broadcast content. Charter review will
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  be characterised by our openness, our efforts to engage as broad a section of the population as we can, and our commitment to listen to what people have to say. And I am being helped in this by Lord Burns, who will provide me with independent advice throughout.

  Charter review is not a single process. It will take in a range of existing and planned work, including Ofcom's review of public service television, the independent review of BBC online and the forthcoming reviews of the BBC's new digital services.

  But it will also feature widespread public involvement, built around a three-phase process of consultation. Phase one starts today, based on a very broad consultation document—The Review of the BBC's Royal Charter—which I have published today. I have placed copies of the document—and a supporting leaflet—in the Libraries of both Houses.

  Phase two, timed to begin around the end of 2004, will aim to bring together the results of phase one, the conclusions of various reviews taking place over the course of next year and the findings of our own programme of research into a green paper, which will be published for a further stage of consultation.

  A White Paper will follow, with a further round of consultation. We will conclude the process with a full and formal opportunity for both Houses to contribute their views.

  Today's publication forms the central plank of phase one. It sets out a framework for consultation—based on a series of key themes—within which there is plenty of room for discussion of all aspects of the BBC's role, structure and function. The consultation will be supported by a programme of survey research and direct engagement with the public and stakeholders.

  The BBC belongs to everyone. It is one of our most valued institutions. In many ways, it reflects what is best about the values, culture and society of the United Kingdom, at home and abroad. Charter review gives the whole country an opportunity to have its say about the kind of BBC it wants for the future.

ENVIRONMENT, FOOD AND RURAL AFFAIRS

  Water Framework Directive
  The Minister for the Environment (Mr. Elliot Morley)
  The Government is today laying regulations1 before Parliament which transpose the Water Framework Directive in England and Wales. Defra is also publishing on the Defra web-site a final Regulatory Impact Assessment (RIA)2 as well as a summary of the views of those who commented on the most recent consultation on the Directive, and a Government response to their comments3.

  The regulations provide the framework for delivery of the Directive's demanding environmental objectives. The quality of rivers, lakes, estuaries, coastal waters and groundwaters must be protected and enhanced by 2015. In addition, wetlands depending on groundwater must be safeguarded and water related requirements of other Community legislation taken into account.

  All this action must be integrated into packages of measures and plans based on river basins, which must be drawn up with full public participation.
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  The regulations comprise one set covering England and Wales (which have already been approved by the National Assembly for Wales) and a further set covering the Northumbria river basin district which crosses slightly over the England/Scotland border.
  1 The Water Environment (Water Framework Directive) (England and Wales) Regulations 2003 and
  The Water Environment (Water Framework Directive (Northumbria River Basin District) Regulations 2003 can be found at http://www.legislation.hmso.gov.uk/si/dsis2003.htm and a transposition note can be found at http://www.defra.gov.uk/corporate/ria/default.htm
  Maps showing the district boundaries for each set of Regulations can be found at http://www.defra.gov.uk/environment/water/wfd/index.htm
  1The Regulatory Impact Assessment can he found at http:// www.defra.gov.uk/corporate/ria/default.htm
  3Summary of third Framework Directive consultation paper responses and Government response/commentary on regulations can be found at http://www.defra.gov.uk/environment/water/wfd/index.htm

  TRANSPOSITION IS ONLY THE FIRST STEP

  The Water Framework Directive is of exceptional importance in setting the objectives for our policies towards the water environment for years to come. The Government is fully committed to these objectives. Transposition of the Directive through these regulations is a significant stage in its implementation. But it is important to recognise that it is only one step along the road. Full implementation will depend on a wide range of further decisions and actions to be taken over the coming years. The transposition regulations should be seen as enabling and requiring these further steps to take place. But they are by no means all that is needed to put the directive into practice. Key issues, as currently envisaged, on which further decisions and action will be needed, in order to achieve this, are summarised in the annex.

  The overall effect of the regulations is that in England, the Secretary of State has ultimate responsibility for the Directive's implementation; this responsibility includes:
  an explicit role in approving environmental objectives, programmes of measures and river basin management plans;
  the power to issue guidance to the Agency and other relevant bodies, to which they are bound to have regard.
  The Environment Agency has responsibility to:
  Characterise river basin districts;
  Identify bodies of water used for the abstraction of drinking water;
  Prepare, review and keep up to date a register of protected areas for each river basin district;
  Establish programmes to monitor water status, so as to establish an overview of water status within each river basin district;
  Prepare and submit to the 'appropriate authority' (i.e. Secretary of State and/or National Assembly for Wales) environmental objectives for each body of water and programmes of measures;
  Prepare and submit to the appropriate authority a river basin management plan for each district (including consultation, publicity and taking account of views) and supplementary plans.
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  The Government has greatly appreciated the input made through the comments of those who have responded to consultation. The Government is setting out its response to them today on the Defra website. A very wide range of comments were received and a wide range of changes have been made to the draft regulations published in August this year. These include revisions to provisions dealing with programmes of measures, river basin management plans, public participation and publication of information.

  A FRAMEWORK FOR ACTION

  The regulations set the framework for further implementation action by both the Government and the Environment Agency, as competent authority for the Directive. There is much more action to come. The regulations achieve transposition; but the Government will be building on the regulations by bringing forward a range of proposals dealing with such issues as controls on diffuse pollution, River Basin Management Plan guidance and the development of a Water Framework Directive communications strategy.

  Discussions continue in Brussels on linked proposals for new Directives on groundwater and priority substances, building on Water Framework Directive requirements. Further work is underway at Community level to develop guidance packages to support implementation of the Directive. The UK will continue actively to support such work, including through its pilot river basin scheme based on the river Ribble in the North-West. The regulations need to be seen therefore in the context of this further future action.

  KEY EARLY ACTIONS

  The EA, as competent authority in England and Wales, will consult in 2004 on a public participation strategy. This will in turn inform the formal mechanisms that will ensure full and proper participation of wider society at the river basin level. It is not just the Government that must ensure that all are aware of and fully engaged in this process—there is also an important role for all agencies and organisations that wish to see a better quality water environment. To this end Defra and the EA are already developing, in close consultation with stakeholders, a WFD communication strategy for England to raise awareness of both the WFD and water quality issues.

  The benefits and opportunities the Directive will provide—economic and social regeneration, biodiversity, integration of land-use and sectoral planning, flood management, fisheries/marine, health and amenity—must be explained and seized upon. For its own part the Government has instituted much of this integration within its own structures already, building on the principles outlined in its 2002 statement of priorities for water policy, "Directing the Flow". This will continue, as will the focus on delivery at the regional and sub-regional level.

  Meeting the good ecological and chemical status requirements in the directive will be a challenge. A key analysis of impacts of human activity on water bodies must be completed by December 2004. Diffuse pollution from agricultural and urban sources will need to be tackled as a priority to meet the Directive's objectives, as well as further reductions in point source discharges. The costs of the measures required to meet "good status" will need to be apportioned to water users and
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  other sectors in a transparent and rational way. A robust economic analysis is a core requirement of this Directive and will ensure that the benefits of the measures employed justify the costs involved. (Defra will assess the scope for updating the final RIA from 2005). Costs must, as far as possible, adhere to the polluter pays principle. Defra is leading this analysis in England, in conjunction with Ofwat and the Environment Agency. The results will underpin the identification of the most effective suite of measures be they regulatory, fiscal, incentive or voluntary. Each of these measures will be formulated with the full engagement of the wider public both within the auspices of the WFD stakeholder forum for England and at the regional and local level through the active

  HELPING TO CARRY FORWARD THE DIRECTIVE WITH THE WIDER WATER AGENDA

  Alongside action to carry forward implementation of the requirements of the Directive through these regulations, the Government will actively be pursuing linked actions, consistent with the overall policy objectives of "Directing the Flow" and the aims and spirit of the Directive.

  These will include: work to carry forward and implement the provisions of the Water Act 2003 that will
  further the sustainable use of water resources;
  promote water conservation; including a requirement for mandatory water company drought plans which up until now have been voluntary.
  completion of the current Periodic Review of water prices and related environmental investment programmes to protect and enhance surface and groundwater water quality, including the water needs of important wetlands and other important biodiversity sites;
  work within the context of the Convention for the Protection of the Marine Environment of the North-East Atlantic (OSPAR) on hazardous substances and nutrients and work to help deliver the Government's vision for the marine environment as set out in "Seas of Change";
  work on establishing effective integration and linkages between river basin management plans (including supplementary plans) and other plans with a bearing on them, including abstraction plans, flood management plans and land use plans.
  Annex—Key further decisions and action likely to be taken in the implementation of the WFD

  (Note: all key decisions will be subject to prior consultation with stakeholders)

  Year

  Activity

  2004

  Defra consults on measures to tackle diffuse pollution from agriculture, and on priorities for action to tackle urban diffuse pollution.

  Consultation on diffuse pollution regulatory enabling powers.

  1st phase of characterization of water bodies (including identification of heavily modified water bodies), review of environmental impacts and pressures and economic analysis for each river basin district completed. (This will be refined from 2005 onwards).

  103WS

  Year

  Activity

  Defra completes economic analysis work necessary for 2004 on cost recovery, economic importance and dynamics of water use and the preparation of a methodology for cost effective analysis.

  WFD communications strategy for England launched.

  EA consults on draft strategy for River Basin Planning (RBP) including public participation. Defra assesses need to amend WFD regulations in clued further bodies under a duty to exercise relevant functions so as to secure compliance with the requirements of the Directive

  Defra/Scottish Executive assess whether further regulatory provisions needed for England/Scotland cross border river basin districts Defra assesses adequacy of existing powers to ensure hydromorphological conditions are consistent with meeting water status objectives 2004 Periodic Review of Water Price Limits sets the investment by water companies to improve water quality and water resource management for the period 2005–10. This will deliver substantial environmental quality improvements that will help achieve "good status".

  EA completes register of WFD "protected areas" with input from others including English Nature and Countryside Council for Wales. Establishment of arrangements for linkage between Strategic Environmental Directive and WFD.

  EU Environment Council consideration of daughter directive on groundwater EU Commission publishes proposals for daughter directive on priority substances

  2005

  Defra consults on River Basin Planning (RBP) guidance to EA (including the scope and use of "supplementary plans")

  Defra issues guidance to EA on RBP. EA launches national RBP strategy, including plans for public participation and administrative structures.

  2005 onwards

  Refinement of characterization to reduce uncertainty in risk assessments.

  Assess scope for updating final RIA

  2006

  Defra consults on and brings into force water status classification regulations.

  Intercalibration results published by European Commission.

  Formal monitoring of sites starts.

  EA publish for consultation the timetable/work in progess for the production of each River Basin Management Plan (RBMP).

  2007

  EA to publish and make available for comment an interim overview of significant issues identified for each RBMP.

  Preparation of a prototype River Basin

  FEES FOR REGISTRATION AND INSPECTION 2004/05

  (2003–04 fees in brackets)

  REGISTRATION FEES

  Service

  Unit

  Current fee

  New fee

  Provider registration

  home

  £1320*

  £1584

  Provider registration small homes and adult placements

  home

  £360*

  £432

  Manager registration

  manager

  £360*

  £432

  Minor variation

  application

  £60

  £72

  Variation requiring visit

  application

  £660*

  £792

  104WS

  Year

  Activity

  Management Plan and Programme of Measures for the Ribble Pilot.

  2008

  EA to publish and make available for comment first round of draft RBMPs, including summaries of Programmes of Measures (PoMs) and other material specified in Annex VII of the WFD.

  2009

  EA to publish finalized RBMPs, including summary of PoMs. After approval by SoS/NAW

  Programmes of Measures established.

  2012

  Programme of Measures operational

  2013

  Freshwater Fish, Shellfish, Groundwater, Surface Water Abstraction and (partly) Dangerous Substance Directives repealed by WFD.

  2014

  EA to publish draft of second round of RBMPs for consultation

  2015

  Environmental objectives of WFD met. PoMs reviewed and, if necessary, updated.

  2015 onwards

  RBMPs and PoMs reviewed every 6 years.

HEALTH

  Care Service Regulatory Fees
  The Parliamentary Under-Secretary of State for Health (Dr. Stephen Ladyman)
  The fees for care services currently regulated by the National Care Standards Commission (NCSC) will be increased in April 2004. A table of the new fees is as follows.

  Regulatory fee income is to assist with the funding of the NCSC, with the intention of achieving full cost recovery after five years, with a review in 2004. The policy on regulatory fees—including the intention of full cost recovery and the consequences for later years—was established following consultation in 2001. The fee structure also makes the costs of regulation transparent and borne by those who stand to benefit from more consistent national minimum standards so that pressures will apply to the regulatory process to ensure that it continues to be effective and efficient.

  Next April, the Commission for Social Care Inspection will take on the NCSC's role of regulating independent social care providers. The regulation of private and voluntary healthcare providers will move from the NCSC to the Commission for Healthcare Audit and Inspection. The new Commissions will further strengthen the system for inspecting those services.

  Individual letters are being sent to all providers of care services regulated by the NCSC to notify them about the increases.
  105WS

  FEES FOR REGISTRATION AND INSPECTION 2004/05

  (2003–04 fees in brackets)

  REGISTRATION FEES

  ANNUAL FEES

  Approved Place

  Approved place

  Service

  Flat rate

  from 4th—29th

  over 30th

  Care homes & hospices

  £21 6 (£180)

  £72 (£60)

  £72 (£60)

  Small care homes and adult placements

  £114 (£120)

  N/a

  N/a

  Acute and mental health hospitals

  £ 3600 (£3000)

  £144 (£120)

  £72 (£60)

  Prescribed techniques clinics

  £1080 (£900)

  £144 (£120)

  £72 (£60)

  Independent hospital

  £1440 (£1200)

  £144 (£120)

  £72 (£60)

  Other independent healthcare

  £1440 (£1200)

  N/a

  N/a

  Children's homes

  £720 (£600)

  £ 72 (£60)

  £72 (£60)

  Small children's homes

  £720 (£600)

  N/a

  N/a

  Boarding schools and further education

  £360 (£300)

  £21.60 (£18)

  £10.80 (£9)

  Residential special schools

  £576 (£480)

  £57.60 (£48)

  £28.80 (£24)

  Fostering agencies and local authorities

  £1440 (£1200)

  N/a

  N/a

  Residential family centres

  £ 480 (£400)

  £60 (£50)

  £60 (£50)

  Domiciliary care agencies

  £ 900 (£750)

  N/a

  N/a

  Small domiciliary care agencies

  £ 450 (£375)

  N/a

  N/a

  Nurses agencies

  £ 600 (£500)

  N/a

  N/a

  Voluntary adoption agencies

  £ 600 (£500)

  N/a

  N/a

  Voluntary adoption agency branches

  £ 300 (£250)

  N/a

  N/a

  Small nurses agencies

  £ 300 (£250)

  N/a

  N/a

  *Domiciliary care agencies, voluntary adoption agencies, nurse agencies and residential family centres pay 2003–04 prices

TREASURY

  Aspire IT Services Contract
  The Paymaster General (Dawn Primarolo)
  The Inland Revenue is today announcing that Cap Gemini Ernst & Young (CGEY) has been selected as the Department's preferred supplier for the Aspire IT services contract.

  Aspire will provide a range of Information Technology/Information Systems and related services including voice. These services are intended to support current and new business channels (including e-business) as the Department faces the challenges of the future. Because no one single supplier can provide the full range of IT services the Inland Revenue requires, CGEY will act as the Prime supplier with responsibility for integrating Inland Revenue systems and supporting transformation, supported by co-partners.

  The initial term of the contract will be 10 years, with options to extend, potentially in a number of stages, for up to 18 years.

  The competition sought to identify the bidder which delivers the most economically advantageous tender. Two preferred bidders were announced on 16 July 2003. Cap Gemini Ernst & Young and Revenue Professional Services (RPS—an alliance of EDS and Accenture). The Project developed a comprehensive and exhaustive evaluation process that commenced with the receipt of responses to the Invitation to Tender (ITT) in March 2003. The technical fit of each proposition was tested against specific criteria for:
  strategic partnership potential
  ability to deliver IT services
  ability to innovate and deliver technology enabled change
  ability to manage transition to the new contract effectively.
  106WS
  In parallel with this activity there was a financial and commercial evaluation.

  CGEY proved themselves across the range of evaluation criteria and demonstrated their capacity to act as strategic partner. In addition, the contract prices quoted by both bidders were compared with each other and with a baseline established through the use of professional benchmarking advisers (a "Should Cost Model").

WORK AND PENSIONS

  Social Security Benefits Uprating 2004
  The Secretary of State for Work and Pensions (Mr. Andrew Smith)
  The proposed rates of benefit for 2004 are set out in the table below. The annual uprating of benefits will take place for State Pension and most other benefits in the first full week of the tax year. In 2004, this will be the week beginning 12 April. My right hon. Friend the Secretary of State for Northern Ireland proposes to introduce similar changes for Northern Ireland.

  (Weekly rates unless otherwise shown)

  Rates 2003

  Rates 2004

  ATTENDANCE ALLOWANCE

  higher rate

  57.20

  58.80

  lower rate

  38.30

  39.35

  CARER'S ALLOWANCE

  43.15

  44.35

  COUNCIL TAX BENEFIT

  Personal allowances single

  18 to 24

  43.25

  44.05

  25 or over

  54.65

  55.65

  lone parent—18 or over

  54.65

  55.65

  couple—one or both over 18

  85.75

  87.30

  Dependent Children

  from birth to September following 16th birthday

  38.50

  42.27

  from September following 16th birthday to day before 19th birthday

  38.50

  42.27

  107WS

  (Weekly rates unless otherwise shown)

  Rates 2003

  Rates 2004

  Pensioner (from October 2003)

  single—60–64

  102.10

  105.45

  couple—one or both 60–64

  155.80

  160.95

  single—65 and over

  116.90

  121.00

  couple—one or both 65 and over

  175.00

  181.20

  Premiums

  family

  15.75

  15.95

  family (lone parent rate)

  22.20

  22.20

  pensioner

  single

  47.45

  49.80

  couple

  70.05

  73.65

  pensioner (enhanced)

  single

  47.45

  49.80

  couple

  70.05

  73.65

  pensioner (higher)

  single

  47.45

  49.80

  couple

  70.05

  73.65

  disability

  single

  23.30

  23.70

  couple

  33.25

  33.85

  enhanced disability premium single rate

  11.40

  11.60

  disabled child rate

  16.60

  17.08

  couple rate

  16.45

  16.75

  severe disability

  single

  42.95

  44.15

  couple (lower rate)

  42.95

  44.15

  couple (higher rate)

  85.90

  88.30

  disabled child

  41.30

  42.49

  carer

  25.10

  25.55

  bereavement

  22.80

  23.95

  Allowance for persona] expenses for claimants in hospital

  higher rate

  19.35

  19.90

  lower rate

  15.50

  15.90

  Non-dependant deductions aged 18 or over and in remunerative work

  — gross income: £308 or more

  6.95

  6.95

  —gross income: £247—£307.99

  5.80

  5.80

  —gross income: £144—£246.99

  4.60

  4.60

  —gross income less than £144

  2.30

  2.30

  others, aged 18 or over

  2.30

  2.30

  Alternative maximum Council Tax Benefit second adult on IS, JSA(ib) or Pension Credit

  25% of Council Tax

  25% of Council Tax

  second adult's gross income:

  —under £144

  15% of Council Tax

  15% of Council Tax

  —£144 to £185.99

  7.5% of Council Tax

  7.5% of Council Tax

  Capital

  upper limit

  16,000.00

  16.000.00

  amount disregarded

  3,000.00

  3,000.00

  upper limit (claimant/partner 60 or over)

  16,000.00

  16,000.00

  upper limit (PC guarantee) from Oct 2003

  No limit

  No limit

  amount disregarded (clmt/ptner 60 or over)

  6,000.00

  6,000.00

  child disregard

  3,000.00

  3,000.00

  upper limit of RC/NH

  16,000.00

  16,000.00

  amount disregarded of RC/NH

  10,000.00

  10,000.00

  Tariff income

  £1 for every complete £250 or part thereof between amount of capital disregarded and capital upper limit

  Tariff income (claimant/partner 60 or over) from October 2003

  £1 for every £500 or part thereof between amount of capital disregard and capitalupper limit

  Earnings disregards

  where disability premium awarded

  20.00

  20.00

  various specified employments

  20.00

  20.00

  lone parent

  25.00

  25.00

  where the claimant has a partner

  10.00

  10.00

  single claimant

  5.00

  5.00

  where carer premium awarded

  20.00

  20.00

  childcare

  94.50

  135.50

  childcare charges (2 or more children)

  140.00

  200.00

  Other income disregrads

  maintenance disregards

  15.00

  15.00

  war disablement pension and war widow's pension

  10.00

  10.00

  certain voluntary and charitable payments

  20.00

  20.00

  student loan

  10.00

  10.00

  stident's covenanted income

  5.00

  5.00

  108WS

  (Weekly rates unless otherwise shown)

  Rates 2003

  Rates 2004

  income from boarders: disregard the fixed amount (£20) plus 50% of the balance of the charge

  20.00

  20.00

  30/16 hour disregard

  11.90

  12.32

  Expenses for subtenants

  furnished or unfurnished

  4.00

  4.00

  where heating is included, additional

  9.65

  9.80

  DEPENDENCY INCREASES

  Adult Dependency Increases for spouse or person looking after children, with;

  retirement pension on own insurance,

  46.35

  47.65

  long term incapacity benefit, unemployability supplement

  43.15

  44.35

  severe disablement allowance

  25.90

  26.65

  carers allowance

  25.80

  26.50

  short-term incapacity benefit if beneficiary over pension age

  41.50

  42.65

  maternity allowance/short-term incapacity benefit

  33.65

  34.60

  Child Dependency Increases, with; retirement pension, widowed mothers allowance, widowed parents allowance, short-term incapacity benefit at the higher rate & long term incapacity benefit, carers allowance, severe disability allowance, higher rate industrial death benefit, unemployability supplement and short-term incapacity benefit if beneficiary over pension age

  11.35

  11.35

  NB—The Overlapping Benefits Regulations provide for the rate of child dependency increases to be adjusted where the increase is payable for the eldest eligible child for whom Child Benefit is also payable. The weekly rate of the increase is reduced by the differential (less £3.50 from April 2000) between the rate of Child Benefit payable for the oldest eligible child and that payable for a subsequent child.

  DISABILITY LIVING ALLOWANCE

  Care Component

  Highest

  57.20

  58.80

  Middle

  38.30

  39.35

  Lowest

  15.15

  15.55

  Mobility Component

  Higher

  39.95

  41.05

  Lower

  15.15

  15.55

  EARNINGS RULES

  Carers Allowance

  77.00

  79.00

  Limit of earnings from councillor's allowance

  67.50

  72.00

  Permitted work earnings limit

  67.50

  72.00

  Industrial injuries unemployability supplement permitted earnings level (annual amount)

  3,510.00

  3,744.00

  Adult dependency increases with short-term incapacity benefit where claimant is

  (a) under pension age

  33.65

  34.60

  (b) over pension age

  41.50

  42.65

  maternity allowance

  33.65

  34.60

  retirement pension, long-term incapacity benefit, severe disablement allowance, unemploy ability supplement where dependant

  (a) is living with claimant

  54.65

  55.65

  (b) still qualifies for the tapered earnings rule

  45.09

  45.09

  retirement pension,

  46.35

  47.65

  long-term incapacity benefit and unemployability supplement where dependant not living with claimant

  43.15

  44.35

  severe disablement allowance where dependant not living with claimant

  25.90

  26.65

  carers allowance

  25.80

  26.50

  Child dependency increases level at which CDIs are affected by earnings of claimant's spouse or partner

  for first child

  160.00

  165.00

  for each subsequent child

  20.00

  21.00

  HOSPITAL DOWNRATING

  20% rate

  15.50

  15.90

  38% rate

  29.45

  30.25

  HOUSING BENEFIT

  Personal allowances single

  16 to 24

  43.25

  44.05

  25 or over

  54.65

  55.65

  109WS

  (Weekly rates unless otherwise shown)

  Rates 2003

  Rates 2004

  lone parent

  under 18

  43.25

  44.05

  18 or over

  54.65

  55.65

  couple

  both under 18

  65.30

  66.50

  one or both 18 or over

  85.75

  87.30

  dependent children from birth to September following 16th birthday

  38.50

  42.27

  from September following 16th birthday to day before 19th birthday

  38.50

  42.27

  pensioner (from October 2003)

  single—60–64

  102.10

  105.45

  couple—one or both 60–64

  155.80

  160.95

  single—65 and over

  116.90

  121.00

  couple—one or both 65 and over

  175.90

  181.20

  Premiums

  family

  15.75

  15.95

  family (lone parent rate)

  22.20

  22.20

  pensioner

  single

  47.45

  49.80

  couple

  70.05

  73.65

  pensioner (enhanced)

  single

  47.45

  49.80

  couple

  70.05

  73.65

  pensioner (higher)

  single

  47.45

  49.80

  couple

  70.05

  73.65

  disability

  single

  23.30

  23.70

  couple

  33.25

  33.85

  enhanced disbility premium single rate

  11.40

  11.60

  disabled child rate

  16.60

  17.08

  couple rate

  16.45

  16.75

  severe disability

  single

  42.95

  44.15

  couple (lower rate)

  42.95

  44.15

  couple (higher rate)

  85.90

  88.30

  disabled child

  41.30

  42.49

  carer

  25.10

  25.55

  bereavement

  22.80

  23.95

  Allowance for personal expenses for claimants in hospital

  higher rate

  19.35

  19.90

  lower rate

  15.50

  15.90

  Non-dependant deductions rent rebates and allowances aged 25 and over, in receipt of Income Supporter income-based Job Seekers Allowance aged 18 or over, not in remunerative work or in receipt of Pension Credit

  7.40

  7.40

  —gross income less than £97 aged 18 or over and in remunerative work

  7.40

  7.40

  —gross income: less than £97

  7.40

  7.40

  —gross income: £97 to £143.99

  17.00

  17.00

  —gross income: £144 to £185.99

  23.35

  23.35

  —gross income: £186 to £246.99

  38.20

  38.20

  —gross income: £247 to £307.99

  43.50

  43.50

  —gross income: £308 and above

  47.75

  47.75

  Service charges for fuel

  heating

  9.65

  9.80

  hot water

  1.15

  1.20

  lighting

  0.80

  0.80

  cooking

  1.15

  1.20

  Amount ineligible for meals three or more meals a day single claimant

  19.50

  19.85

  each person in family aged 16 or over

  19.50

  19.85

  each child under 16

  9.85

  10.05

  less than three meals a day single claimant

  12.95

  13.20

  each person in family aged 16 or over

  12.95

  13.20

  each child under 16

  6.55

  6.65

  breakfast only—claimant and each member of family

  2.40

  2.45

  Capital

  upper limit

  16,000.00

  16,000.00

  amount disregarded

  3,000.00

  3,000.00

  upper limit (claimant/partner 60 or over)

  16,000.00

  16,000.00

  upper limit (PC guarantee) from Oct 2003

  No limit

  No limit

  amount disregarded (claimant/partner 60 or over)

  6,000.00

  6,000.00

  child disregard

  3,000.00

  3,000.00

  upper limit of RC/NH

  16,000.00

  16,000.00

  amount disregarded of RC/NH

  10,000.00

  10,000.00

  110WS

  (Weekly rates unless otherwise shown)

  Rates 2003

  Rates 2004

  Tariff income

  £1 for every complete £250 or part thereof between amount of capital disregarded and capital upper limit

  Tariff income (claimant/partner 60 or over) from Oct 2003

  £1 for every £500 or part thereof between amount of capital disregard and capital upper limit

  Earnings disregards

  where disability premium awarded

  20.00

  20.00

  various specified employments

  20.00

  20.00

  lone parent

  25.00

  25.00

  where the claimant has a partner

  10.00

  10.00

  single claimant

  5.00

  5.00

  where carer premium awarded

  20.00

  20.00

  childcare charges

  94.50

  135.00

  childcare charges (2 or more children)

  140.00

  200.00

  Other income disregards

  maintenance disregard

  15.00

  15.00

  war disablement pension and war widow's pension

  10.00

  10.00

  certain voluntary and charitable payments

  20.00

  20.00

  student loan

  10.00

  10.00

  student's covenanted income

  5.00

  5.00

  income from boarders: disregard the fixed amount (£20) plus 50% of the balance of the charge

  20.00

  20.00

  30/16 hour disregard

  11.90

  12.32

  Expenses for subtenants furnished or unfurnished

  4.00

  4.00

  where heating is included, additional

  9.65

  9.80

  Maximium rates for recovery of overpayments ordinary overpayments

  8.25

  8.40

  where claimant convicted of fraud

  10.80

  11.20

  INCAPACITY BENEFIT

  Long-term Incapacity Benefit

  72.15

  74.15

  Short-term Incapacity Benefit (under pension age)

  lower rate

  54.40

  55.90

  higher rate

  64.35

  66.15

  Short-term Incapacity Benefit (over pension age)

  lower rate

  69.20

  71.15

  higher rate

  72.15

  74.15

  Increase of Long-term Incapacity Benefit for age

  higher rate

  15.15

  15.55

  lower rate

  7.60

  7.80

  Invalidity Allowance (Transitional)

  higher rate

  15.15

  15.55

  middle rate

  9.70

  10.00

  lower rate

  4.85

  5.00

  INCOME SUPPORT

  Personal Allowances single

  under 18—usual rate

  32.90

  33.50

  under 18—higher rate payable in specific circumstances

  43.25

  44.05

  18 to 24

  43.25

  44.05

  25 or over

  54.65

  55.65

  lone parent

  under 18—usual rate

  32.90

  33.50

  under 18—higher rate payable in specific circumstances

  43.25

  44.05

  18 or over

  54.65

  55.65

  couple

  both under 18

  32.90

  33.50

  both under 18, one disabled

  43.25

  44.05

  both under 18, with responsibility for a child

  65.30

  66.50

  one under 18, one 18–24

  43.25

  44.05

  one under 18, one 25 +

  54.65

  55.65

  both 18 or over

  85.75

  87.30

  dependent children

  birth to September following 16th birthday

  38.50

  42.27

  from September following 16th birthday to day before 19th birthday

  38.50

  42.27

  Premiums

  family

  15.75

  15.95

  family (lone parent rate)

  15.90

  15.95

  pensioner couple

  70.05

  73.65

  pensioner (enhanced) couple

  70.05

  73.65

  pensioner (higher) couple

  70.05

  73.65

  disability

  single

  23.30

  23.70

  couple

  33.25

  33.85

  enhanced disability premium single rate

  11.40

  11.60

  111WS

  (Weekly rates unless otherwise shown)

  Rates 2003

  Rates 2004

  disabled child rate

  16.60

  17.08

  couple rate

  16.45

  16.75

  severe disability

  single

  42.95

  44.15

  couple (lower rate)

  42.95

  44.15

  couple (higher rate)

  85.90

  88.30

  disabled child

  41.30

  42.49

  carer

  25.10

  25.55

  bereavement

  22.80

  23.95

  Allowances for personal expenses for claimants in hospital:

  higher rate

  19.35

  19.90

  lower rate

  15.50

  15.90

  Housing costs deduction for non-dependants aged 25 and over, in receipt of Income Support or income based Job Seekers Allowance aged 18 or over, not in work or in receipt of Pension Credit

  7.40

  7.40

  aged 18 or over and in remunerative work

  —gross income: less than £97

  7.40

  7.40

  —gross income: £97 to £143.99

  17.00

  17.00

  —gross income: £144 to £185.99

  23.35

  23.35

  —gross income: £186 to £246.99

  38.20

  38.20

  —gross income: £247 to £307.99

  43.50

  43.50

  —gross income: £308 and above

  47.75

  47.75

  Deduction for direct payments, arrears of housing, fuel and water costs council tax and fines default

  2.75

  2.80

  Deductions for child maintenance (standard)

  5.50

  5.60

  Deductions for child maintenance (lower)

  2.75

  2.80

  Arrears of Community Charge

  court order against claimant

  2.75

  2.80

  court order against couple

  4.30

  4.40

  Third party deductions personal expenses allowance

  17.50

  18.10

  Maximium rates for recovery of overpayments ordinary overpayments

  8.25

  8.40

  where claimant convicted of fraud

  10.80

  11.20

  Reduction in benefit for strikers

  29.50

  30.00

  Capital

  upper limit

  8,000.00

  8,000.00

  amount disregarded

  3,000.00

  3,000.00

  upper limit (claimant/partner 60 or over)

  12,000.00

  12,000.00

  amount disregarded (claimant/partner 60 or over)

  6,000.00

  6,000.00

  child's limit

  3,000.00

  3,000.00

  upper limit (care home)

  16,000.00

  16,000.00

  amount disregarded (care home)

  10,000.00

  10,000.00

  Tariff income £1 for every complete £250 or part thereof between amount of capital disregarded and capital upper limit

  Disregards

  standard earnings

  5.00

  5.00

  couples earnings

  10.00

  10.00

  higher earnings

  20.00

  20.00

  war disablement pension and war widow's pension

  10.00

  10.00

  voluntary and charitable payments

  20.00

  20.00

  student loan

  10.00

  10.00

  student's covenanted income

  5.00

  5.00

  income from boarders: disregard the fixed amount (£20) plus 50% of the balance of the charge

  20.00

  20.00

  Expenses for subtenants furnished or unfurnished

  4.00

  4.00

  where heating is included, additional

  9.65

  9.80

  INDUSTRIAL DEATH BENEFIT

  Widow's pension

  higher rate

  77.45

  79.60

  lower rate

  23.24

  23.88

  Widower's pension

  77.45

  79.60

  INDUSTRIAL INJURIES DISABLEMENT PENSION

  18 and over, or under 18 with dependants

  100%

  116.80

  120.10

  90%

  105.12

  108.09

  80%

  93.44

  96.08

  70%

  81.76

  84.07

  60%

  70.08

  72.06

  50%

  58.40

  60.05

  40%

  46.72

  48.04

  30%

  35.04

  36.03

  20%

  23.36

  24.02

  Under 18

  100%

  71.55

  73.55

  90%

  64.40

  66.20

  80%

  57.24

  58.84

  70%

  50.09

  51.49

  112WS

  (Weekly rates unless otherwise shown)

  Rates 2003

  Rates 2004

  60‥

  42.93

  44.13

  50%

  35.78

  36.78

  40%

  28.62

  29.42

  30%

  21.47

  22.07

  20%

  14.31

  14.71

  Maximum life gratuity (lump sum)

  7,760.00

  7,980.00

  Unemployability Supplement

  72.15

  74.15

  plus where appropriate an increase for early incapacity

  higher rate

  15.15

  15.55

  middle rate

  9.70

  10.00

  lower rate

  4.85

  5.00

  Maximum reduced earnings allowance

  46.72

  48.04

  Maximum retirement allowance

  11.68

  12.01

  Constant attendance allowance

  exceptional rate

  93.60

  96.20

  intermediate rate

  70.20

  72.15

  normal maximum rate

  46.80

  48.10

  part-time rate

  23.40

  24.05

  Exceptionally severe disablement allowance

  46.80

  48.10

  JOBSEEKERS ALLOWANCE

  Contribution based JSA—Personal rates

  under 18

  32.90

  33.50

  18 to 24

  43.25

  44.05

  25 or over

  54.65

  55.65

  Income-based JSA—personal allowances

  under 18

  32.90

  33.50

  18 to 24

  43.25

  44.05

  25 or over

  54.65

  55.65

  lone parent

  under 18—usual rate

  32.90

  33.50

  under 18—higher rate payable in specific circumstances

  43.25

  44.05

  18 or over

  54.65

  55.65

  couple

  both under 18

  32.90

  33.50

  both under 18, one disabled

  43.25

  44.05

  both under 18, with responsibility for a child

  65.30

  66.50

  one under 18, one 18–24

  43.25

  44.05

  one under 18, one 25+

  54.65

  55.65

  both 18 or over

  85.75

  87.30

  dependent children from birth to September following 16th birthday

  38.50

  42.27

  from September following 16th birthday to day before 19th birthday

  38.50

  42.27

  Premiums

  family

  15.75

  15.95

  family (lone parent rate)

  15.90

  15.95

  pensioner

  single

  47.45

  49.80

  couple

  70.05

  73.65

  pensioner (enhanced) couple

  70.05

  73.65

  pensioner (higher)

  single

  47.45

  49.80

  couple

  70.05

  73.65

  disability

  single

  23.30

  23.70

  couple

  33.25

  33.85

  enhanced disability premium single rate

  11.40

  11.60

  disabled child rate

  16.60

  17.08

  couple rate

  16.45

  16.75

  severe disability

  single

  42.95

  44.15

  couple (lower rate)

  42.95

  44.15

  couple (higher rate)

  85.90

  88.30

  disabled child

  41.30

  42.49

  carer

  25.10

  25.55

  bereavement

  22.80

  23.95

  hospital

  higher rate

  19.35

  19.90

  lower rate

  15.50

  15.90

  Housing costs

  deduction for non-dependants aged 25 and over, in receipt of Income Support or income based Job Seekers Allowance aged 18 or over, not in remunerative work or in receipt of Pension Credit 0.00

  7.40

  7.40

  aged 18 or over and in remunerative work

  —gross income: less than £97

  7.40

  7.40

  —gross income: £97 to £143.99

  17.00

  17.00

  —gross income: £144 to £185.99

  23.35

  23.35

  —gross income: £186 to £246.99

  38.20

  38.20

  —gross income: £247 to £307.99

  43.50.

  43.50

  113WS

  (Weekly rates unless otherwise shown)

  Rates 2003

  Rates 2004

  gross income: £308 and above

  47.75

  47.75

  Deduction for direct payments Deductions from JSA (IB) arrears of housing, fuel and water costs council tax and fines default, and

  2.75

  2.80

  Deductions for Child Maintenance deductions for child maintenance (standard)

  5.50

  5.60

  deductions for child maintenance (lower)

  2.75

  2.80

  Arrears of Community Charge

  court order against claimant

  2.75

  2.80

  court order against couple

  4.30

  4.40

  Third party deductions personal expenses allowance

  17.50

  18.10

  Deductions from JSA (continued)

  Arrears of Community Charge, Council Tax, fines & overpayment recovery

  Age 16–17

  10.96

  11.16

  Age 18–24

  14.41

  14.68

  Age 25+

  18.21

  18.55

  Maximum deduction for arrears of Child Support Maintenance

  Age 16–17

  10.96

  11.16

  Age 18–24

  14.41

  14.68

  Age 25+

  18.21

  18.55

  Maximium rates for recovery of overpayments in JSA(ib)

  ordinary overpayments

  8.25

  8.40

  where claimant convicted of fraud

  10.80

  11.20

  Reduction in benefit for strikers

  29.50

  30.00

  Capital

  upper limit

  8,000.00

  8,000.00

  amount disregarded

  3,000.00

  3,000.00

  child's limit

  3,000.00

  3,000.00

  upper limit (care home)

  16,000.00

  16,000.00

  amount disregarded (care home)

  10,000.00

  10,000.00

  upper limit (claimant/partner 60 or over)

  12,000.00

  12,000.00

  amount disregarded (claimant/partner 60 or over)

  6,000.00

  6,000.00

  Tariff income £1 for every complete £250 or part thereof between amount of capital disregarded and capital upper limit

  Disregards

  standard earnings

  5.00

  5.00

  couples earnings

  10.00

  10.00

  higher earnings

  20.00

  20.00

  war disablement pension and war widow's pension

  10.00

  10.00

  voluntary and charitable payments

  20.00

  20.00

  student loan

  10.00

  10.00

  student's covenanted income

  5.00

  5.00

  income from boarders: disregard the fixed amount (£20) plus 50% of the balance of the charge

  20.00

  20.00

  Expenses for subtenants

  furnished or unfurnished

  4.00

  4.00

  where heating is included, additiona

  9.65

  9.80

  MATERNITY ALLOWANCE

  Standard rate

  100.00

  102.80

  MA threshold

  30.00

  30.00

  PENSION CREDIT

  Standard minimum guarantee

  single

  102.10

  105.45

  couple

  155.80

  160.95

  Additional amount for severe disability

  single

  42.95

  44.15

  couple (one qualifies)

  42.95

  44.15

  couple (both qualify)

  85.90

  88.30

  Additional amount for carers

  25.10

  25.55

  Savings credit

  threshold—single

  77.45

  79.60

  threshold—couple

  123.80

  127.25

  maximum—single

  14.79

  15.51

  maximum—couple

  19.20

  20.22

  Capital

  Amount disregard

  6,000.00

  6,000.00

  Amount disregard—care homes

  10.000.00

  10,000.00

  Deemed income £1 for each complete £500 or part thereof in excess of above amounts

  Housing costs

  Deduction for non-dependents

  —aged 18 or over, not in work or in work and in receipt of Pension Credit

  7.40

  7.40

  —aged 18 or over and in work: aged 18 or over and in remunerative work

  —gross income: less than £97

  7.40

  7.40

  —gross income: £97 to £143.99

  17.00

  17.00

  114WS

  (Weekly rates unless otherwise shown)

  Rates 2003

  Rates 2004

  —gross income: £144 to £185.99

  23.35

  23.35

  —gross income: £186 to £246.99

  38.20

  38.20

  —gross income: £247 to £307.99

  43.50

  43.50

  —gross income: £308 and above

  47.75

  47.75

  Amount for claimant and first spouse in polygamous marriage

  155.80

  160.95

  Additional amount for additional spouse

  53.70

  55.50

  Disregards

  Standard earnings

  5.00

  5.00

  Couples earnings

  10.00

  10.00

  Higher earnings

  20.00

  20.00

  War disablement pension and War widows pension

  10.00

  10.00

  Widowed Parent's Allowance

  10.00

  10.00

  Income from subtenants

  20.00

  20.00

  Income from boarders (disregard the fixed amount (£20) plus 50% of the balance of the charge)

  20.00

  20.00

  Third Party Deductions arrears of housing, fuel, water costs, council tax and fines default

  2.75

  2.80

  Arrears of Community Charge

  court order against claimant

  2.75

  2.80

  court order against couple

  4.30

  4.40

  Maximum rates of recovery of overpayments

  —ordinary overpayments

  8.25

  8.40

  —where claimant convicted of fraud

  10.80

  11.20

  Third party deductions personal expenses allowance

  17.50

  18.10

  PNEUMOCONIOSIS, BYSSINOSIS, AND MISCELLANEOUS DISEASES SCHEME AND THE WORKMEN'S COMPENSATION (SUPPLEMENTATION)

  Total disablement allowance and major incapacity allowance (maximum)

  116.80

  120.10

  Partial disablement allowance

  43.15

  44.35

  Unemployability supplement plus where appropriate increases for early incapacity

  72.15

  74.15

  higher rate

  15.15

  15.55

  middle rate

  9.70

  10.00

  lower rate

  4.85

  5.00

  Constant attendance allowance

  exceptional rate

  93.60

  96.20

  intermediate rate

  70.20

  72.15

  normal maximum rate

  46.80

  48.10

  part-time rate

  23.40

  24.05

  Exceptionally severe disablement allowance

  46.80

  48.10

  Lesser incapacity allowance

  maximum rate of allowance

  43.15

  44.35

  based on loss of earnings over

  57.20

  58.80

  RETIREMENT PENSION

  Category A or B

  77.45

  79.60

  Category B (lower)—husband's insurance

  46.35

  47.65

  Category C or D—non-contributory

  46.35

  47.65

  Category C (lower)—non-contributory

  27.70

  28.50

  Additional pension

  Increase by

  2.8%

  Increments to:

  Increase by

  Basic pension

  2.8%

  Additional pension

  2.8%

  Increase to AP where Contracted out deduction

  2.8%

  (COD) relates to pre-April 1988 earnings

  2.8%

  Graduated Retirement Benefit (GRB)

  2.8%

  Increase to AP where COD relates to April 1988 April 1997 earnings [3.0% paid by schemes]

  Nil

  Graduated Retirement Benefit (unit)

  0.0937

  0.0963

  Graduated Retirement Benefit (Inherited)

  Increase by

  2.8%

  Addition at age 80

  0.25

  0.25

  SEVERE DISABLEMENT ALLOWANCE

  Basic rate

  43.60

  44.80

  Age-related addition (from Dec 1990)

  Higher rate

  15.15

  15.55

  Middle rate

  9.70

  10.00

  Lower rate

  4.85

  5.00

  STATUTORY ADOPTION PAY

  Earnings threshold

  77.00

  79.00

  Rate

  100.00

  102.80

  STATUTORY MATERNITY PAY

  Earnings threshold

  77.00

  79.00

  Standard rate

  100.00

  102.80

  115WS

  (Weekly rates unless otherwise shown)

  Rates 2003

  Rates 2004

  STATUTORY PATERNITY PAY

  Earnings threshold

  77.00

  79.00

  Rate

  100.00

  102.80

  STATUTORY SICK PAY

  Earnings threshold

  77.00

  79.00

  Standard rate

  64.35

  66.15

  WIDOW'S BENEFIT

  Widowed mother's allowance

  77.45

  79.60

  Widow's pension

  standard rate

  77.45

  79.60

  age-related

  age 54 (49)

  72.03

  74.03

  53 (48)

  66.61

  68.46

  52 (47)

  61.19

  62.88

  51 (46)

  55.76

  57.31

  50(45)

  50.34

  51.74

  49 (44)

  44.92

  46.17

  48 (43)

  39.50

  40.60

  47 (42)

  34.08

  35.02

  116WS

  46 (41)

  28.66

  29.45

  45 (40)

  23.24

  23.88

  Note: For deaths occurring before 11 April 1988 refer to age-points shown in brackets.

  BEREAVEMENT BENEFIT

  Bereavement payment (lump sum)

  2,000.00

  2,000.00

  Widowed parent's allowance

  77.45

  79.60

  Bereavement Allowance

  standard rate

  77.45

  79.60

  age-related

  age 54

  72.03

  74.03

  53

  66.61

  68.46

  52

  61.19

  62.88

  51

  55.76

  57.31

  50

  50.34

  51.74

  49

  44.92

  46.17

  48

  39.50

  40.60

  47

  34.08

  35.02

  46

  28.66

  29.45

  45

  23.24

  23.88