House of Lords written statement – made at on 21 November 2006.
Lord Hunt of Kings Heath
Parliamentary Under-Secretary, Department for Work and Pensions, Parliamentary Under-Secretary (Department for Work and Pensions)
My Right Honourable Friend the Secretary of State for Work and Pensions (John Hutton) has made the following Statement.
Subject to parliamentary approval of the necessary supplementary estimate, the Department for Work and Pensions DEL will decrease by £5,668,000 from £7,785,869,000 to £7,780,201,000 and the administration budget will decrease by £4,136,000 from £5,831,270,000 to £5,827,134,000.
Within the DEL change, the impact on resources and capital are as set out in the following table.
| Change £k | New DEL £k | |||
| Voted | Non-voted | Total | ||
| Resource | (5,730) | 6,505,703 | 1,252,235 | 7,757,938 |
| of which: | ||||
| Administration | (4,136) | 5,788,324 | 38,810 | 5,827,134 |
| Near-cash | (5,730) | 6,291,703 | 1,289,683 | 7,581,386 |
| Capital | 62 | 179,332 | 150 | 179,482 |
| Depreciation1 | - | (154,667) | (2,552) | (157,219) |
| Total | (5,668) | 6,530,368 | 1,249,833 | 7,780,201 |
| 1 Depreciation, which forms part of resource DEL, is excluded from the total DEL since capital DEL includes capital spending and to include depreciation of those assets would lead to double counting. | ||||
Resource DEL
The change in the resource element of the DEL arises from:
RfR2
i. a reduction in provision of £4,507,000 (administration) relating to the transfer of rail safety from HSE to the Office of Rail Regulation (ORR);
ii. a reduction in provision of £1,594,000 (other current) relating to the transfer of rail safety from HSE to the Office of Rail Regulation (ORR); and
RfR5
iii. an increase in provision of £371,000 (administration) due to a transfer of funding from the Cabinet Office for the transfer of the functions of the Parliamentary Counsel Office.
Capital DEL
The change in the capital element of the DEL arises from:
RfR2
iv. an increase in provision of £78,000 due to a successful bid from the invest to save budget; and
v. a decrease in provision of £16,000 relating to the transfer of rail safety from HSE to the Office of Rail Regulation (ORR).
Administration Costs
The movement in the administration cost limit arises from those items noted above as affecting administration costs.
Movements from non-voted expenditure
Additionally there are the following drawdowns that are neutral in overall DEL terms:
Housing Benefit Reform Fund (HBRF)
vi. £20,000,000 into RfR2 for employment programmes within Jobcentre Plus;
vii. £4,200,000 into RfR2 for the Rent Service;
viii. £37,250,000 into RfR2 for modernisation of housing benefit; and
Employment Development and Skills Fund (EDSF)
ix. £40,000,000 into RfR2 to increase provision for Jobcentre Plus.
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