Welfare Reform Bill

Thursday 12th January 2012 Written Statements

[The Minister of State, Department for Work and Pensions (Chris Grayling)]

The Department for Work and Pensions has obtained approval for a second advance from the Contingencies Fund of £3.737 million to allow for the continuance of work related to the introduction of employment and support allowance (ESA) time-limiting and the abolition of ESA youth, including the development of IT, before Royal Assent. This is a second advance, required as there is now greater clarity around the date for Royal Assent now that the Welfare Reform Bill has reached Report stage in the Lords. In September 2011, I informed Parliament of a £2.705 million advance for the same purpose.

This second advance will allow the ESA time-limiting and abolition of youth project to continue to work to its current design and development timetable and enable continuity of third-party supplier engagement. Subject to Royal Assent, this will enable the change to be introduced from 30 April 2012. This will bring ESA more in line with other contributory benefit regimes. It will also simplify the rules governing ESA, making it easier to administer and preparing the way for the introduction of universal credit.

Parliamentary approval for resources of £3,737,000 for this new service has been sought in the main estimate 2011-12, but is subject to the approval of the Welfare Reform Bill. Pending that approval, urgent expenditure of £3,737,000 will be met by repayable cash advances from the Contingencies Fund.