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HM Treasury

Spending Review

PN A13

12 July 2004

Improved work and pensions services

The Government today announced the reallocation of large efficiency savings to improve front line Department of Work and Pensions (DWP) services through reform initiatives in priority areas.

By 2007-08 DWP will reduce its workforce by 30,000 and its administration budget in real terms by 3.0 per cent per year. The savings will fund reform in key service areas including helping people on incapacity benefit into employment and assisting future pensioners plan for retirement and take advantage of savings opportunities.

The Secretary of State for Work and Pensions, Andrew Smith, said:

“Today's announcement sets out a very challenging but deliverable settlement for the Department and reflects the substantial investments made in previous Spending Reviews. Major improvements in efficiency will release resources for front-line services allowing us to make further progress on full employment as well as continuing to tackle child and pensioner poverty”

Details

£ million 2004-05 2005-06 2006-07 2007-08
Department for Work and Pensions
Resource Budget 7849 8198 8198 8198
(Of which administration) (5913) (6049) (5885) (5828)
Capital Budget 435 356 155 50
Total Departmental Expenditure Limit 1 8164 8434 8212 8105
1 Full resource budgeting basis, net of depreciation

Notes for editors

  1. Media enquiries to HM Treasury press office on 020 7270 5238.
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