Spending Review
SR2002/DWP
15 July 2002
A national extension of work-focused help was announced by the Chancellor, Gordon Brown, today. Jobcentre Plus offices - which integrate help in getting into work with benefits services - will be extended nationwide by 2006. This will support a further 2 million interviews with personal job advisors.
The spending review also confirms the Government's commitment to introducing the Pension Credit from 2003, to raise the income of the poorest pensioners and reward those on low and moderate incomes for their saving.
In addition, the spending review announces:
Welcoming the settlement, Andrew Smith, Secretary of State for Work and Pensions, said:
"Today's announcement underlines the strength of the Government's commitment to its key priorities of tackling poverty and increasing employment. The modern work first culture we are introducing with Jobcentre Plus means more people will be helped more quickly and with greater effect."
1. The 2002 Spending Review for the Department for Work and Pensions delivers 1.1 per cent real terms growth over the three years to 2005-06 as follows:
| £ million | 2002-03 | 2003-04 | 2004-05 | 2005-06 |
| Department for Work and Pensions | ||||
| Resource Budget | 7,000 | 7,633 | 7,743 | 7,843 |
| Capital Budget | 117 | -4 | 161 | 83 |
| Total Departmental Expenditure Limit1 | 7,018 | 7,531 | 7,800 | 7,817 |
| Near-cash spending in DWP DEL2 | 7,018 | 7,515 | 7,780 | 7,798 |
1 Full resource budgeting basis, net of depreciation
|
2. The Department for Work and Pensions was created in 2001, bringing together the former Department of Social Security with the parts of the former Department for Education and Employment responsible for employment. The social security benefits programme is in Annually Managed Expenditure.
3. 56 Jobcentre Plus pathfinder offices were opened in Autumn 2001, bringing together the Employment Service and those parts of the Benefits Agency dealing with working age people. Anyone making a claim for benefit at a Jobcentre Plus office receives an interview with a personal advisor to discuss the opportunities available for taking up work, and has access to job vacancies, information, advice, training and support. In March 2002 the Government announced a further 225 new Jobcentre Plus offices by April 2003. The Spending Review announces the extension of the Jobcentre Plus network nationwide by 2006.
4. The Government announced in the 2001 Pre-Budget Report its decision to proceed with the implementation of the Pension Credit from 2003 at a cost of £2 billion in 2004-05. This will bring pensioners' income up to a guaranteed minimum entitlement of at least £100 per week for a single pensioner by 2003, and reward pensioners whose savings, second pensions or earnings give them incomes of up to around £135 per week for single pensioners. The 2002 Spending Review confirms the resources to implement the Pension Credit and funds additional activity to encourage pensioners to apply for the Pension Credit.
5. The Government conducted a comprehensive review of public services - the Comprehensive Spending Review - in 1998. The 2000 Spending Review built on this by setting targets and allocating resources for the three years to 2003-04. The 2002 Spending Review revises these plans for 2003-04 and outlines new plans for 2004-05 and 2005-06.
6. For further details please contact the Department for Work and Pensions Press Office on 020 7238 0866 or visit the DWP website at http://www.dwp.gov.uk/.
Back to top