(7 years, 8 months ago)
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The Minister for the Cabinet Office and Paymaster General (Ben Gummer)
The Cabinet Office has sought a routine advance of £150 million from the Contingency Fund to cover pension benefit payments by the Principal Civil Service Pension Scheme. The amount includes £90 million to fund pension benefits and £60 million to fund payments to HMRC in respect of the tax related to these benefits.
This technical measure is simply since the costs have fallen earlier in the financial year than initially forecast by pension administrators.
Authority has already been sought in the supplementary estimate 2016-17 for these payments, but this is not due to be approved by Parliament until the end of this month. The funds will be repaid to the Contingency Fund once the Supply Bill has been authorised. There is no interest on such advances from the Contingency Fund.
[HCWS524]