---

WALES OFFICE

Supplementary Estimates

The Secretary of State for Wales (Mr. Peter Hain): As a result of the 2004–05 winter supplementary estimate, the Wales departmental expenditure limit (DEL) increased by £109,058,000 from £11,789,595,000 to £11,898,653,000.

The increase was a result of:

Take up of EYF entitlement    £130,000,000

Additional provision for Child Poverty    £78,000

Transfers to and from the National Assembly for Wales:

Transfers In

From DWP for Work Based Learning for Adults    £28,000

From DFES for Hardship Loans    £591,000

From DWP for Sure Start    £184,000

From DoH for Out of Areas Treatments    £11,128,000

From DoH for publications    £32,000

From Home Office for Operation Tarian    £315,000

From Home Office for CRU running costs £602,000

From Home Office for a Business Crime Advisor    £52,000

From Home Office for Social Cohesion    £64,000

Total    £12,996,000

Transfers Out

To the Scottish Executive for the 15th Conference

of the Commonwealth Education Ministers    (£100,000)

To the Department for Constitutional Affairs

(transfer of services to the Wales Office)    (£490,000)

To the Met Office for NMP and NSWWS    (£611,000)

To DWP for Housing Benefit and Council Tax Subsidy    (£23,615,000)

To DWP for Administration Subsidy 2004–05    (£9,200,000)

Total    (£34,016,000)

Net transfers out    (£21,020,000)

Net change to Wales DEL    £109,058,000

As a result of the above transfers provision within the Wales Office increased by £490,000. This expenditure is contained within the single DCA DEL and Administration Costs Limit.

Spring Supplementary Estimate 2004–05

Subject to Parliamentary approval of any necessary Supplementary Estimate, the Wales Departmental Expenditure Limit (DEL) Wales Administration costs will be increased by £287,528,000 from £11,413,862,000 to £11,701,390,000.

The changes are a result of:

The take-up of Departmental Expenditure Limit end year flexibility of for the National Assembly for Wales;    £156,000,000

Net transfers from other Government Departments to the National Assembly for Wales of    £2,106,000

The movement of the Supporting People programme from AME to DEL     £121,000,000

A machinery of Government change with the responsibility for the Fire Service devolved to the National Assembly for Wales. This has led to an increase to the DEL.    £8,422,000

Net change to Wales DEL    £287,528,000

 
22 Feb 2005 : Column 50WS
 

Transfers are as follows:

Transfer In

From the DWP for Adult Learning Inspectorate;    £200,000

From the Home Office for Prison Health—Pay Uplift;     £51,000

From the Home Office for Prison Health - (Estate Planning and Development Group)    £71,000

From the DoH for Dental Sift;    £13,000

From the DoH for High Security Psychiatric Services;     £192,000

From the DoH for Cross Border Flows    £2,024,000

From the Scotland Office for Out of Areas Treatments     £14,000

From the Northern Ireland Office for Out of Areas Treatments    £7,000

From the Home Office for Golden Jubilee Awards      £34,000

Total    £2,606,000

Transfers Out

To DfES for part time student support;    (£500,000)

Total    (£500,000)

Net Transfer Total    £2,106,000

The increase in DEL will be charged to the reserve or offset by transfers from other Departments and will not therefore add to the planned total of public expenditure.

Wales DEL provision for Wales Office increased by £16,000 as a result of a transfer from Parliamentary Counsel Office. Wales Office spending is contained within single Department of Constitutional Affairs Departmental Expenditure Limit and Administration Costs Limit.

WORK AND PENSIONS

Benefit Fraud (Redbridge)

The Parliamentary Under-Secretary of State for Work and Pensions (Mr. Chris Pond): On behalf of my Rt hon. Friend the Secretary of State for Work and Pensions, the BFI inspection report on the London Borough of Redbridge was published on 17 February 2005 and copies of the report are available in the Library.

In 2003–04, the London Borough of Redbridge administered some £82.1 million in housing benefits, about 13.5 per cent. of its gross revenue expenditure. BFI reviewed the counter-fraud arrangements in place to protect these significant sums, at the invitation of the Borough.

BFI found that Redbridge gives a high priority to combating benefit fraud and that the Investigation Team is experienced and sharply focused on deterring fraud. The Team raises a considerable number of sanctions against fraudsters and is well supported by council Members and managers.

However, BFI have serious concerns about:

inappropriate use of authorised individual's powers when obtaining information from third parties;

a poor relationship with the department's Counter Fraud Investigation Service;

non-compliance with the provisions of the code of practice on covert surveillance;

 
22 Feb 2005 : Column 51WS
 

failure to follow the Department's guidance on the administration of formal cautions;

breaches of the Police and Criminal Evidence Act 1984 in half of the interviews under caution examined by BFI;

the nature of referrals from the Metropolitan Police to the Investigation Team.

My Rt hon. Friend the Secretary of State is now considering the report and may ask the council for its proposals in response to BFI's findings and recommendations.

BFI will continue to undertake inspections focused on counter-fraud arrangements in other local authorities.

BFI is an independent unit within the Department for Work and Pensions that inspects and reports directly to the Secretary of State for Work and Pensions on the standard of Benefits administration and counter-fraud activity in local authorities and the Department itself.

Supplementary Estimates

The Secretary of State for Work and Pensions (Alan Johnson): Subject to Parliamentary approval of any necessary Supplementary Estimate, the Department for Work and Pensions DEL will be increased by £151,841,000 from £8,497,041,000 to £8,648,882,000 and the administration costs limits will be increased by £124,621,000 from £5,995,966,000 to £6,120,587,000. Within the DEL change, the impact on resources and capital are as set out in the following table:
£'000s

		New DEL
	Change	Voted	Non-voted	Total
Resource	147,571	7,283,080	1,188,829	8,471,909
Capital	4,000	293,445	1,202	294,647
Depreciation*	270	-116,960	-714	-117,674
Total	151,841	7,459,565	1,189,317	8,648,882

* 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.

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

RfR2

i. an increase in provision of £24,000,000 (grants) in Section Z due to increased spending by the European Social Fund with an equivalent increase in appropriations in aid in Section AC (take up of end of year flexibility);

ii. an increase in provision of £297,000 (administration costs) due to a transfer from the Department for Transport for work on a code of practice for transport;

iii. an increase in provision of £122,000 (administration costs) in Section A due to a transfer from the Department for Constitutional Affairs for implementation of the Fines Project;

iv. an increase in provision of £1,377,000 (administration costs) in Section A due to a transfer from the Office of the Deputy Prime Minister in respect of Neighbourhood Renewal;

v. an increase in provision of £131,000 (administration costs) in Section A due to a transfer from the Scottish Executive in respect of work undertaken by the Disability Rights Commission;

vi. an increase in provision of £65,000 (administration costs) in Section A due to a transfer from the Office of the Deputy Prime Minister for the administration costs of local Public Service Agreements;

 
22 Feb 2005 : Column 52WS
 

vii. an increase in provision of £600,000 (administration costs) in Section A due to a transfer from the Department for Education and Skills in respect of Young Persons' Bridging Allowance;

viii. a reduction in provision of £5,750,000 (other current) in Section B due to a transfer to the Department for Education and Skills for costs incurred by the Adult Learning Inspectorate;

ix. a reduction in provision of £200,000 (other current) in Section B due to a transfer to the Welsh Assembly for costs incurred by the Adult Learning Inspectorate;

x. a reduction in provision of £25,000 (administration costs) in Section C due to a transfer to the Department for Transport in relation to the Carriage of Dangerous Goods;

RfR3

xi. an increase in provision of £100,000 (administration costs) due to a transfer from the Office of the Deputy Prime Minister in respect of Neighbourhood Renewal;

xii. a reduction in provision of £63,000 (administration costs) in Section A due to a transfer to Northern Ireland SSA in respect of work on Winter Fuel payments;

RfR5

xiii. an increase in provision of £115,000,000 (administration costs) in Section A due to additional spending on Departmental Modernisation (end of year flexibility);

xiv. a reduction in provision of £420,000 (administration costs) in Section A due to a transfer to the Inland Revenue in respect of the Payment Modernisation Project;

xv. a reduction in provision of £1,241,000 (administration costs) in Section A due to a transfer to the Inland Revenue for the costs of the Cheque Payment Service;

RfR6

xvi. an increase in provision of £13,000,000 (administration costs) in Section A due to additional spending by Corporate Services (end of year flexibility);

xvii. an increase in provision of £326,000 (administration costs) in Section A due to a transfer from the Cabinet Office for funding of the Parliamentary Counsel Office;

xviii. an increase in provision of £252,000 (administration costs) in Section A due to a transfer from the Scottish Executive for work carried out on the Family Resources Survey;

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

RfR5

xix. an increase in provision of £4,000,000 in Section A due to increased spending on Departmental Modernisation (take up of End Year Flexibility);

Administration Costs

The movement in the Administration Cost limit arises from those items noted above as affecting administration costs plus the following item which is neutral in terms of overall resource DEL but which impacts the Administration Cost limit:

xx. a transfer of £4,900,000 from administration to other current in respect of the Employment Development and Modernisation Fund;

 
22 Feb 2005 : Column 53WS
 

Movements from Non-voted expenditure

Additionally there are the following draw downs that are neutral in overall DEL terms:

Departmental Unallocated Provision

xxi. £5,000,000 into RfR1 for additional costs incurred by the Child Support Agency;

xxii. £2,000,000 into RfR2 for additional costs incurred by the Health and Safety Executive in connection with the Cullen report;

xxiii. £1,950,000 into RfR3 for additional costs incurred by the Pension Service;

 
22 Feb 2005 : Column 54WS
 

xxiv. £76,507,000 into RfR6 for additional costs incurred by Corporate Services;

Welfare Modernisation Fund

xxv. £74,122,000 (resource) and £22,800,000 (capital) into RfR5 for expenditure on the modernisation of the Department;

Employment Development Fund

xxvi. £83,000,000 into RfR2 for employment related expenditure;

Employment Development and Modernisation Fund

xxvii. £74,700,000 into RfR2 for employment related expenditure.

---

---