Contingency Fund Advance

Department for Work and Pensions written statement – made at on 18 July 2018.

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Photo of Alok Sharma Alok Sharma The Minister of State, Department for Work and Pensions

The Department for Work and Pensions has identified the need for minor revisions to two Statutory Instruments. These relate to the award of some premiums to people entitled to income-based Jobseeker’s Allowance, and to the application of the shared accommodation rate for foster carers in Universal Credit. Both drafting points date back to April 2013.

No customers have been adversely affected in either circumstance and payments of benefit have been – and continue to be – made fully in accordance with the policy intent.

The Department will amend the relevant legislation as soon as practically possible to ensure that these payments are included on the statutory framework.

Parliamentary approval for resources of £ 21,400,000 for this new service has been sought in the Main Estimate for the Department for Work and Pensions. Pending that approval, urgent expenditure estimated at £ 21,400,000 will be met by repayable cash advances from the Contingencies Fund.

Once the Supply and Appropriation (Main Estimates) (No.2) Bill achieves Royal Assent, the advance will be repaid in full and ongoing expenditure will legitimately rest on the sole authority of the Supply and Appropriation Act, until the amending legislation is in place.

This statement has also been made in the House of Lords: HLWS844

House of Lords

The house of Lords is the upper chamber of the Houses of Parliament. It is filled with Lords (I.E. Lords, Dukes, Baron/esses, Earls, Marquis/esses, Viscounts, Count/esses, etc.) The Lords consider proposals from the EU or from the commons. They can then reject a bill, accept it, or make amendments. If a bill is rejected, the commons can send it back to the lords for re-discussion. The Lords cannot stop a bill for longer than one parliamentary session. If a bill is accepted, it is forwarded to the Queen, who will then sign it and make it law. If a bill is amended, the amended bill is sent back to the House of Commons for discussion.

The Lords are not elected; they are appointed. Lords can take a "whip", that is to say, they can choose a party to represent. Currently, most Peers are Conservative.