Department for Work and Pensions

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Department for Work and Pensions

Introduction

1. This Estimate provides for expenditure by the Department for Work and Pensions on a range of reforms to simplify the welfare system to develop the Work Programme, an integrated package of personalised support to get people into work; and to continue to develop a welfare system that recognises work as the primary route out of poverty.

2. The Estimate also provides for expenditure on Operational Delivery within the Department and on the Health and Safety Executive. It also provides for non-contributory benefits and the cost of administration of Social Security Schemes in Great Britain, which includes the cost of other organisations who act as agents of the Department for Work and Pensions in administering various aspects of social security including payments made to third parties for encashment. Gross expenditure includes the costs incurred by the Department for Work and Pensions in administering contributory benefits which are payable from the National Insurance Fund.

3. The Estimate also provides support for local authorities, payments to and from the European Social Fund and payments to the National Insurance Fund which comprise of compensation in respect of Statutory Sick Pay and Statutory Maternity Pay. The Estimate also makes provision for sums payable to the BBC in respect of the over 75's Free TV Licence Scheme, Financial Assistance Scheme, the Pension Protection Fund, Remploy Limited, National Employment Savings Trust and various Executive Non-Departmental Bodies.

A

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Part I

£

Voted Non-Voted Total

Departmental Expenditure Limit

Resource † †† 7,086,718,000 640,080,000 7,726,798,000

Capital 242,000,000 44,490,000 286,490,000

Annually Managed Expenditure

Resource 72,792,452,000 94,799,881,000 167,592,333,000

Capital - - -

Total Net Budget

Resource 79,879,170,000 95,439,961,000 175,319,131,000

Capital 242,000,000 44,490,000 286,490,000

Non-Budget Expenditure 2,400,108,000

Net cash requirement 81,233,603,000

Amounts required in the year ending 31 March 2015 for expenditure by Department for Work and Pensions on:

Departmental Expenditure Limit:

Expenditure arising from:

Funding for the administration and operating costs of the Department, including grants, loans and payments to other Government Departments, Local Authorities, Devolved Administrations, private, public and voluntary

organisations. This will enable the Department to fulfil its obligations to support people who are out of work move into work quickly, support the most vulnerable people in society, alleviating poverty and supporting responsible behaviour and reforms to the welfare system. The provision of employment and training programmes and payments of appropriate allowances to help people back to work, including the support of cross-government initiatives related to employment.

Assisting people to make plans for their retirement, including research into pensions, private pension industry regulatory work, programmes and measures to help improve independence and social inclusion for older people.

Provision for general levy payments to the Pension Regulator in respect of Public Sector Pension Schemes, the costs and payments associated with the collapse of private pension schemes. The provision of expenditure promoting the Department's objectives in other Government Departments; Local Authorities; Devolved Administrations; Crown and Executive Non-Departmental Public Bodies, including the Health and Safety

Executive; private, public and voluntary organisations. Training and employment projects assisted by the European Union through the European Social Fund, including programme losses and disallowances, refunds to the European Union and exchange rate gains and losses.

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Part I (continued)

The payment of social security benefits to people of working age, pensioners, and people with disabilities and their carers in accordance with the prevailing legislation and regulations. Significant social security benefits include Jobseekers Allowance, Income Support, Employment Support and Allowance, Disability Living Allowance, Pension Credit, Universal Credit, Personal Independence Payment and other associated benefits, including housing benefit, rent rebates, temporary subsidies to employers. Compensation for dust related diseases, payments for education and provisions and other non-cash costs relating to AME. Costs and payments associated with the collapse of private pension schemes.

Income arising from:

Income arising from the receipt from damages payable to recipients of Statutory Sick Pay, receipts in respect of benefits paid in lieu and recoveries of payments towards Motability costs.

Non-Budget Expenditure:

Payment of the Grant to the Social Fund to fund Regulated, Discretionary and Winter Fuel payments.

Department for Work and Pensions will account for this Estimate.

Annually Managed Expenditure:

Income arising from:

In accordance with the prevailing legislation and regulations, income arising from the administration of the Department for Work and Pensions, Crown and Executive Non-Departmental Public Bodies in delivering its statutory responsibilities, including receipts from staff, outward secondments, sale of non-capital items, recovery of court costs, services carried out on behalf of public and private sector bodies and members of the public, EU activity, levy funded bodies and other associated income.

Subsidies to housing, billing, levying and local authorities for administering the Housing Benefit. The costs incurred from the collection of debt arising from overpayments of benefit and on behalf of other public and private sector bodies.The provision of IT, employee and financial services to other public sector bodies; policy; research;

publicity; the UK subscription to the International Labour Organisation; international educational, training and employment programmes; assistance and advice on employment and labour market issues to international organisations; measures to promote financial inclusion; measures and assistance to promote digital inclusion;

associated depreciation and any other non-cash costs relating to DEL.

Payments in relation to Specialised Vehicles Fund; Vaccine Damage Payments; Funeral Expense Payments; Sure Start Maternity Grants.

Receipts in respect of recoveries of payments towards Motability costs.

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Part I (continued)

£

Voted Total Allocated in Vote on Account

Balance to complete or

surrender

Resource 7,086,718,000 3,215,401,000 3,871,317,000

Capital 242,000,000 167,279,000 74,721,000

Resource 72,792,452,000 32,544,041,000 40,248,411,000

Capital - - -

Non-Budget Expenditure 2,400,108,000 1,081,518,000 1,318,590,000

Net cash requirement 81,233,603,000 36,383,532,000 44,850,071,000

† £549,000 has been advanced from the Contingencies Fund to provide cash in respect of resource DEL spending of

£ 37,000,000 supporting the service provided for under section J of this Estimate. A corresponding cash amount is required to enable repayment to be made to the Fund by July 2014.

†† Expenditure totalling £ 37,000,000 under section J is subject to the passage of the Pensions Bill, which has passed second reading in the House of Commons. The provision sought will not be used for the service, or for any purpose, until the enabling legislation has been enacted.

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Resources Capital

Gross Income Net Gross Income Net Gross Income Net Net Net

1 2 3 4 5 6 7 8 9 10 11

1,237,675 -29,046 1,208,629 6,422,416 -544,327 5,878,089 242,000 - 242,000 6,789,666 198,938 Of which:

121,750 - 121,750 1,979,391 -3,494 1,975,897 3,020 - 3,020 2,707,940 1,423

68,464 - 68,464 401,777 -22,976 378,801 5,500 - 5,500 467,104 11,025

93,722 - 93,722 48,084 - 48,084 6,100 - 6,100 157,317 7,683

- - - 400,001 -400,000 1 - - - -3,299 -

20,084 - 20,084 323,831 - 323,831 1,500 - 1,500 358,514 3,540

- - - 905,500 - 905,500 - - - 1,041,314 6,326

- - - 656,497 - 656,497 - - - 469,259 -

- - - 159,607 -50,679 108,928 85,408 - 85,408 34,273 66,087

933,655 -29,046 904,609 135,068 -67,178 67,890 30,472 - 30,472 1,403,347 102,854

- - - 1,412,660 - 1,412,660 110,000 - 110,000 - -

- - - - - - - - - 153,897 -

- - - 640,080 - 640,080 44,490 - 44,490 611,355 -

Of which:

- - - 600,163 - 600,163 - - - 611,379 -

- - - 39,917 - 39,917 44,490 - 44,490 - -

- - - - - - - - - -24 -

1,237,675 -29,046 1,208,629 7,062,496 -544,327 6,518,169 286,490 - 286,490 7,401,021 198,938

Consolidated Fund Extra Receipts - -

Total Spending in DEL

Non-voted expenditure

K National Insurance Fund - -

L Expenditure incurred by the Social Fund - -

J Unallocated provision - -

Financial Assistance Scheme - -

H Other Programmes - -

I Departmental operating costs - -

F Employment Programmes - -

G Support for Local Authorities - -

D European Social Fund - -

E Executive Non-Departmental Public Bodies (Net) - -

-

B Child Maintenance Group - -

C Health and Safety Executive (Net) - -

Spending in Departmental Expenditure Limits (DEL)

Voted expenditure

A Operational Delivery -

2014-15 2013-14

Plans Provisions

Part II: Subhead detail

£'000

Administration Programme

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1 2 3 4 5 6 7 8 9 10 11

- - - 72,888,198 -95,746 72,792,452 - - - 72,558,461 2,360

Of which:

- - - 537,212 - 537,212 - - - 877,314 -

- - - 933,725 -24,331 909,394 - - - 907,215 11

- - - 2,935 - 2,935 - - - 10,037 138

- - - 3,177,670 -2,287 3,175,383 - - - 3,985,922 1,908

- - - 8,328,895 -22,815 8,306,080 - - - 6,805,431 137

- - - 2,838,149 -14,732 2,823,417 - - - 3,708,668 166

- - - 6,704,426 - 6,704,426 - - - 7,149,967 -

- - - 442,372 - 442,372 - - - 625,654 -

- - - 630,617 - 630,617 - - - 610,084 -

- - - 5,525,757 -3,922 5,521,835 - - - 5,427,863 -

- - - 1,426,048 - 1,426,048 - - - 144,001 -

- - - 13,416,528 -27,659 13,388,869 - - - 13,768,224 -

- - - 2,266,970 - 2,266,970 - - - 2,084,613 -

- - - 18,258,270 - 18,258,270 - - - 17,951,174 -

- - - 5,862,715 - 5,862,715 - - - 5,814,056 -

- - - 2,400,117 - 2,400,117 - - - 2,213,156 -

- - - 141,792 - 141,792 - - - 474,555 -

- - - -6,000 - -6,000 - - - 918 -

- - - - - - - - - -391 -

-

AA Rent Rebates -

AB Statutory Sick Pay and Statutory Maternity Pay -

Y Carer's Allowance -

Z Housing Benefit -

Part II: Subhead detail (continued)

£'000

2014-15 2013-14

AC Other Benefits -

AD Other Expenditure -

Other Expenditure ENDPBs (Net)

W Personal Independence Payment -

X Disability Living Allowance -

U TV Licences for the over 75s -

V Attendance Allowance -

S Pension Credit -

T Financial Assistance Scheme -

Q Employment and Support Allowance -

R Income Support -

O Universal Credit -

P Jobseekers Allowance -

M Severe Disablement Allowance -

N Industrial Injuries Benefits Scheme -

Spending in Annually Managed Expenditure (AME)

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1 2 3 4 5 6 7 8 9 10 11

- - - 94,836,242 -36,361 94,799,881 - - - 92,030,459 -31,443

Of which:

- - - 154,999 -534 154,465 - - - 1,199,138 -

- - - 487,363 -355 487,008 - - - 540,640 66

- - - 4,385,924 -35,472 4,350,452 - - - 3,487,142 1

- - - 400,098 - 400,098 - - - 403,331 -

- - - 86,559,848 - 86,559,848 - - - 83,203,637 -

- - - 573,720 - 573,720 - - - 585,994 -

- - - 2,274,290 - 2,274,290 - - - 2,610,577 -31,510

- - - - - - - - - 1 -

- - - - - - - - - -1 -

- - - 167,724,440 -132,107 167,592,333 - - - 164,588,920 -29,083

- - - 2,400,108 - 2,400,108 - - - 2,490,213 -

Of which:

- - - 2,400,108 - 2,400,108 - - - 2,490,213 -

- - - 2,400,108 - 2,400,108 - - - 2,490,213 -

1,237,675 -29,046 1,208,629 177,187,044 -676,434 176,510,610 286,490 - 286,490 174,480,154 169,855 Of which:

1,237,675 -29,046 1,208,629 81,710,722 -640,073 81,070,649 242,000 - 242,000 81,838,340 201,298

- - - 95,476,322 -36,361 95,439,961 44,490 - 44,490 92,641,814 -31,443

Non Voted Expenditure Voted Expenditure

Total Non-Budget Spending

Total for Estimate Total Spending in AME

Non-Budget spending

AL Cash paid in to the Social Fund - -

Other Contributory Benefits - -

Consolidated Fund Extra Receipts - -

AJ Bereavement benefits - -

AK Expenditure incurred by the Social Fund - -

AH Maternity Allowance - -

AI State Pension - -

AF Jobseekers Allowance - -

AG Employment and Support Allowance - -

Non-voted expenditure

AE Incapacity Benefit - -

Part II: Subhead detail (continued)

£'000

2014-15 2013-14

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Net Cash Requirement 81,233,603 81,890,316 81,330,676

Other adjustments -95,484,451 -92,610,371 -90,251,030

Of which:

Consolidated Fund Standing Services - - -

Removal of non-voted budget items -95,484,451 -92,610,371 -90,251,030

Increase (-) / Decrease (+) in creditors 600,000 600,000 159,529

Use of provisions 171,100 157,074 159,645

Increase (+) / Decrease (-) in stock - - -

Increase (+) / Decrease (-) in debtors 400,000 400,000 910,946

Add cash grant-in-aid 497,153 526,842 695,404

Adjustments to reflect movements in working balances:

Adjustment for NDPBs:

Remove voted resource and capital -493,321 -526,663 -623,023

Prior Period Adjustments - - -

Other non-cash items -301,473 -304,906 -309,768

Departmental Unallocated Provision -1,522,660 - -

Supported capital expenditure (revenue) - - -

Depreciation -192,999 -218,784 -253,939

New provisions and adjustments to previous provisions -445,475 -782,885 -204,125

Of which:

Adjustments to remove non-cash items:

Accruals to cash adjustments -1,287,675 -149,322 534,669

Net Capital Requirement 286,490 169,855 402,429

Net Resource Requirement 177,719,239 174,480,154 170,644,608

Plans Provisions Outturn

Part II: Resource to cash reconciliation

£'000

2014-15 2013-14 2012-13

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Consolidated Fund Extra Receipts in the budget but not in the SoCNE

Total Resource (Estimate) 177,719,239 174,480,154 170,644,608

Other adjustments 2,400,108 2,490,188 2,517,753

Adjustments to remove:

Consolidated Fund Extra Receipts in the resource budget - 25 -

Prior period adjustments - - -

Adjustments to include:

Grants to devolved administrations - - -

Resource AME 167,592,333 164,588,920 160,760,722

Of which:

Resource DEL 7,726,798 7,401,021 7,366,133

Total Resource Budget 175,319,131 171,989,941 168,126,855

Other adjustments -165,276 57,472 -71,552

Grants to devolved administrations - - -

Non-Budget Consolidated Fund Extra Receipts in the SoCNE - - 712

Adjustments to remove:

Capital in the SoCNE - - 70

- - -

Adjustments to include:

Departmental Unallocated Provision (resource) 1,412,660 - -

Non-budget 868,925 722,607 721,544

Resource AME 167,598,333 164,746,385 160,922,280

Capital AME - - -

Resource DEL 5,604,489 6,463,477 6,553,871

Capital DEL - - -70

Total Net Operating Costs 174,071,747 171,932,469 168,197,625

Of which:

Net Programme Costs 172,863,118 170,718,383 167,112,769

Programme AME Income -132,107 -138,644 -31,146

Non-budget income - - -712

Less:

Programme DEL Income -544,327 -343,492 -296,004

Gross Programme Costs 173,539,552 171,200,519 167,440,631

Administration DEL Income -29,046 -53,587 -9,462

Net Administration Costs 1,208,629 1,214,086 1,084,856

Less:

Part III: Note A - Statement of Comprehensive Net Expenditure &

Reconciliation Table

£'000

2014-15 2013-14 2012-13

Gross Administration Costs 1,237,675 1,267,673 1,094,318

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-573,373 -397,055 -305,466

-29,046 -52,212 -4,469

- -1,996 -3,169

- -2,578 -25

-29,046 -47,638 -1,275

- - -1,667

- -180 -175

- -1,195 -3,151

- -63 -18

- - -67

- -1,132 -3,066

-29,046 -53,587 -9,462

-400,000 -200,000 -187,365

-133,827 -44,840 -28,229

-3,494 -3,372 -1,908

-22,976 -439 -284

- -1,850 -3,393

-50,679 - -55

-56,678 -39,179 -22,589

- -17,154 -13,166

- - -88

- -17,154 -13,078

-10,500 -8,920 -8,925

- -10,024 -4,246

- -1,674 -1,867

I Departmental operating costs Other Income

Of which:

A Operational Delivery Interest and Dividends Of which:

A Operational Delivery I Departmental operating costs Other Grants

Of which:

A Operational Delivery B Child Maintenance Group F Employment Programmes H Other Programmes I Departmental operating costs Programme

EU Grants Received Of which:

D European Social Fund Sales of Goods and Services Other Income

Of which:

A Operational Delivery B Child Maintenance Group I Departmental operating costs Total Administration

Interest and Dividends Of which:

I Departmental operating costs Other Grants

Of which:

I Departmental operating costs Of which:

A Operational Delivery B Child Maintenance Group I Departmental operating costs

Plans Provision Outturn

Voted Resource DEL

Of which:

Part III: Note B - Analysis of Departmental Income

£'000

2014-15 2013-14 2012-13

Administration

Sales of Goods and Services

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- - -34

- - -2

- -8,350 -2,343

- -62,530 -54,073

-544,327 -343,468 -296,004

-95,746 -101,201 -28,746

- - -937

-95,746 -101,201 -27,809

-24,331 -24,201 -

-2,287 -2,446 -2,276

-22,815 -19,932 -79

-14,732 -21,762 -25,454

-3,922 -3,814 -

-27,659 -29,046 -

-95,746 -101,201 -28,746

-669,119 -498,256 -334,212

- -370 -7,060

- -24 -2,467

- -346 -4,593

- -370 -7,060

- -370 -7,060

Outturn

Total Voted Capital Income

Part III: Note B - Analysis of Departmental Income (continued)

£'000

2014-15 2013-14 2012-13

Plans Provision

Repayments Of which:

I Departmental operating costs Total Programme

Voted Capital DEL

Of which:

Programme

Sales of Assets Of which:

I Departmental operating costs V Attendance Allowance X Disability Living Allowance Total Programme

Total Voted Resource Income

Other Income Of which:

N Industrial Injuries Benefits Scheme P Jobseekers Allowance

Q Employment and Support Allowance R Income Support

Voted Resource AME

Of which:

Programme

Other Grants Of which:

AC Other Benefits

I Departmental operating costs Taxation

Of which:

H Other Programmes Total Programme

B Child Maintenance Group F Employment Programmes

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Part III: Note C - Analysis of Consolidated Fund Extra Receipts

In addition to income retained by the Department the following income is payable to the Consolidated Fund:

£'000

Income Receipts Income Receipts Income Receipts

Income in budgets surrendered to the

Consolidated Fund (resource) ^- ^- ^-25 ^-25 ^- ^-

Income in budgets surrendered to the

Consolidated Fund (capital) ^- ^- ^- ^- ^- ^-

Non-budget amounts collectable on behalf of the Consolidated Fund (in the SoCNE)

- - - - - -

Total _- _- _-25 _-25 _- _-

Detailed description of CFER sources

£'000

Income Receipts Income Receipts Income Receipts

Receipts surrendered following the closure of the Ageing Well Project that were unplanned and unexpected

- - -24 -24 - -

Unattributed receipts - - -1 -1 - -

Total - - -25 -25 - -

2014-15 2013-14 2012-13

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Part III: Note D - Explanation of Accounting Officer responsibilities

The Accounting Officer prepares resource accounts for each financial year.

The following individuals are responsible for the expenditure within this Estimate:

Accounting Officer: Robert Devereux

ALB Accounting Officers:

Kevin Myers Health and Safety Executive

James Sanderson Independent Living Fund

Michelle Cracknell The Pensions Advisory Service

Stephen Soper The Pensions Regulator

Tony King The Pensions Ombudsman

In discharging these responsibilities, particular regard is given to:

-

- preparing the accounts on a going concern basis.

The responsibilities of an Accounting Officer, including responsibility for regularity and propriety of the public finances for which an Accounting Officer is answerable, for keeping proper records and safeguarding assets, are also set out in Chapter 3 of Managing Public Money.

In accordance with Managing Public Money requirements, the relationship between the Principal Accounting Officer and Additional Accounting Officer(s) together with their respective responsibilities, is set out in writing. Similarly, the relationship between the Principal Accounting Officer and the ALB Accounting Officer(s) is set out in writing.

In accordance with Chapter 3 of Managing Public Money (issued by the Treasury), the following individuals have been appointed as Accounting Officers of the department's ALBs.

Robert Devereux has personal responsibility for the proper presentation of the department's resource accounts and their transmission to the Comptroller & Auditor General, and is also responsible for the use of public money and stewardship of assets.

observing any accounting and disclosure requirements (including any Accounts Direction) and applying suitable accounting policies on a consistent basis;

making judgements and estimates on a reasonable basis;

stating whether applicable accounting standards, as set out in the Financial Reporting Manual (FReM), or an organisation’s version of it, have been followed, and explain any material departures in the accounts; and

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Part III: Note E - Arm's Length Bodies (ALBs)

£'000

Section in Part II:

Subhead Detail Body Resources Capital Grant-in-aid

C - DEL Health and Safety Executive 141,806 6,100 150,156 E-DEL The Independent Living Fund 293,376 62 295,020 E-DEL The Pensions Advisory Service 3,528 80 3,608 E-DEL The Pensions Regulator 43,589 1,245 44,834 E-DEL The Pensions Ombudsman 3,422 113 3,535

Total 485,721 7,600 497,153

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Subhead Detail Service £'000

Section K - DEL Establishment and Development of Regional Forums on Ageing 161

Part III: Note G - Expenditure resting on the sole authority of the Supply and Appropriation Act

The following subheads contain provision sought under the sole authority of Part I of the Estimate and of the confirming Supply and Appropriation Act

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Part III: Note H - Expenditure in the form of adjustable advances

Discretionary Housing Payments

A discretionary scheme that allows Local Authorities to make awards to people who qualify for Housing Benefit and who are experiencing financial difficulties with housing costs. DWP pay this to Local Authorities at the start of the year via a grant, this is reconciled at the end of the year with underspends being returned to HMT. Any shortfall would be met by DWP.

£125 million for 2014/15 was transferred from AME into DEL at the Autumn Statement 2013 for Discretionary Housing Payments, to be increased by a further £40 million from existing DEL ringfenced budgets.

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Part III: Note J - Staff Benefits

For the financial year 2014-15 budget holders have delegated authority to award reward vouchers to staff under the terms of the Department's Reward and Recognition Scheme. The vouchers are for a range of well known retail outlets and are given in recognition of valuable or exceptional contributions to business performance, as well as to recognise the importance the Department places on the loyalty and commitment of employees. Individual awards will not exceed £150 and, in total, the expenditure for the Reward and Recognition Scheme will not exceed 0.25% of the DWP paybill. In practice the total expenditure is likely to be less than £2.9 million.

The Department operates an Employee Discount Scheme which provides staff with the opportunity to purchase a range of on-line goods and retail vouchers at a reduced price. The cost of items purchased is met by the employee however the Department pays an annual fee to a third party provider for the operation of the contract. This cost is determined by the number of employees registered with the scheme and is likely to be in the region of £30,000.

The Department also operates a Childcare Vouchers (Salary Sacrifice Scheme) which lets staff vary their contract of employment to sacrifice part of their salary (from £1 to £243 per month) in exchange for childcare vouchers. Budget holders have delegated authority to provide staff with childcare assistance, the availability, method and amount of assistance is at the discretion of the budget holder.

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Part III: Note K - Contingent Liabilities

Nature of liability £'000

Contingent liabilities disclosed under IAS 37 Remploy Limited

The Secretary of State for Work and Pensions has given a formal guarantee in respect of Remploy Limited. In the event of Remploy Limited implementing proposals for its liquidation, previously approved by the Secretary of State, the Secretary of State has agreed to pay Remploy Limited a sum equal to excess of its debts over its assets. In addition to this guarantee over Remploy’s net liabilities, the Department also guarantees to cover any shortfall in its pension provision.

Unquantifiable

Financial Assistance Scheme (FAS)

Regulations came into force in April 2010 enabling the transfer to Government of FAS qualifying pension scheme assets and their associated pension liabilities. As a result, the FAS pension provision (note 23a) will increase as the assets and the associated liabilities transfer. It is estimated that the total value of the assets transferred to Government will reach £1.7 billion. However, until the assets transfer it is not possible to estimate the impact on the FAS pension liability.

Unquantifiable

Transfer of State Pensions and Benefits

In 2007, regulations were put in place to allow staff employed in certain EU institutions to transfer an enhanced cash value of potential entitlement to the state pension and other contributory benefits to the Pension Scheme for Officials and Servants of Community Institutions. Until the transfer value has been calculated, a contingent liability arises. The overall time limit is 10 months between the date of application and the transfer payment, however the limits can be extended if needed.

Unquantifiable

Since 2007, 1,199 transfer applications have been received, 81 per cent of which have resulted in transfer payments.

Compensation claims

The Department has contingent liabilities arising from compensation payments that may become due as a result of compensation claims against the Department by staff and members of the public. Claims relate to employment tribunal, personal injury and Civil Service Appeals Board cases. There is significant uncertainty surrounding the estimated liability and the timing of payments, which can fluctuate based on various factors such as medical evidence received, witness statements and whether claims proceed to trial or are settled early.

Unquantifiable

Personal Injury Claims

HSE have received a small number of personal injury claims from employees. In two cases, it is probable that a payment will be made, but there is significant uncertainty about the timing and amount.

Unquantifiable

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Part III: Note K - Contingent Liabilities (continued)

Nature of liability £'000

IT Supplier Dispute

The Department has a contingent liability arising from a dispute with one of its suppliers. The Department terminated a contract in 2011 for IT services provided by the supplier and is currently involved in negotiations together with the Cabinet Office with them to offset the financial impact to the Department of this termination.

Unquantifiable

Negotiations continue and the information usually required by IAS 37 is not being disclosed because the Department believes that to do so would seriously prejudice the outcome.

Fixed Term Appointments

An Employment Tribunal ruled against the Department’s position that the release of Fixed Term Appointment (FTA) employees at the agreed end date of their contract of employment does not constitute a redundancy situation.

Unquantifiable

Around 3,700 FTA employees whose contracts of employment had been extended beyond two years have been released by the Department since 2008. Since then around 300 have brought redundancy compensation claims which have been settled. As the Department’s liability will depend on the number of future qualifying cases brought, the value of the liability cannot be estimated with any certainty.

Compensation Recovery

The Department recognises recoveries from insurance companies in respect of ongoing compensation claims made by benefit recipients. Once the recovery is made the insurance company has the right to appeal within one month. If the appeal is successful recoveries are refunded to the insurance company. Analysis of historic data suggests it is reasonable to recognise a contingent liability of £3 million for successful appeals.

Unquantifiable

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Part III: Note L - International Subscriptions

Subhead Detail Body £'000

Section I - DEL International Labour Organisation 13,500