2004 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

  • DWP is undertaking a radical programme to modernise and transform both its key businesses and back office processes, achieving substantial efficiency savings: reducing its workforce by 30,000 and its administration budget in real terms by 3.0 per cent per year by 2007-8. Key DWP services will be improved through the reallocation of at least half of these savings to the frontline.
  • A new target has been established to reduce the proportion of children living in workless households by 5 per cent between Spring 2005 and Spring 2008. This will represent a further step towards halving the number of children in relative low-income households by 2010-11 and eradicating child poverty by 2020.
  • By 2008, the Government will increase the number of pensioner households in receipt of Pension Credit to at least 3.2 million. Of those 3.2 million, at least 2.2 million will receive the Guaranteed Credit.
  • A new Informed Choice Programme will help people plan for their retirement and take advantage of savings opportunities.
  • The national roll out of Jobcentre Plus will be completed by 2006.
  • DWP will establish the most effective interventions to support disabled people and people with health conditions into employment, building on a comprehensive and rigorous evaluation of the Pathways to Work pilots.
  • A new Disability Discrimination Bill and changes to the Disability Discrimination Act will further improve the rights of disabled people and remove barriers to their participation in society.

£ 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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