Additional memorandum submitted by DWP
Here is an explanation of HSE's financial allocations
following publication of the three-year plan and Lord McKenzie's
appearance before the Committee.
The funding figures in the three year plan contained
a series of assumptions about the level of EYF and the income
generated by additional charging available to HSE. These assumptions
have since changed and will continue to be subject to change until
the year end accounts for HSE are signed off. After that, the
amount of EYF available to HSE will still be subject to agreement
In terms of what resource is available to HSE,
DWP will provide HSE with £689.5 million (which includes
£12 million declared end year flexibility) and the remainder
of their accumulated end year flexibility (EYF) for 2007-08 likely
to be around £13 million, subject to HMT agreement that the
Department can access total EYF. As part of the mid-year review
process HSE declared an under spend of £12 million in 2007-08.
DWP will also give HSE access to exit funding
of up to £10m in SR07, subject to a business case.
HSE will also generate an additional £12
million through charging regimes.
Excluding the additional income from charging,
this total settlement represents up to £712.5 million over
three years including exit funding. Including the additional income
from charging this represents up to £724.5 million. This
compares with a total of £715 million over the SR04 period.
The costs to HSE of the Adventure Activities
Licensing Authority (AALA), the Office for Civil Nuclear Security
(OCNS) and UK Safeguards Office (UKSO), and REACH work have all
been met through either transfers from other government departments,
from income raised by charging for this work or a combination
of both. There has been no financial impact on HSE's net budget
position. The future status of the Gangmaster Licensing Authority
(GLA) is awaiting Ministerial decision.