DLUHC annual report and accounts 2022 to 2023: Annexes
Updated 14 December 2023
© Crown copyright 2023
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Annex A: Disaggregated Information on Arm’s Length Bodies
The following table provides details of how totals included within the Statement of Comprehensive Net Expenditure (SoCNE) are broken down between the department and its Arm’s Length Bodies.
| Permanently employed staff | Other Staff | ||||||
|---|---|---|---|---|---|---|---|
| Arms’ Length Body1 | Total Operating Income £000 |
Total Operating Expenditure £000 |
Total Net Expenditure £000 |
Number employed | Cost £000 |
Number employed | Cost £000 |
| Core Department | (7,545,115) | 38,654,533 | 31,109,418 | 2,929 | 216,606 | 424 | 7,502,869 |
| Commission for Local Administration in England | (72) | 15,910 | 15,838 | 184 | 9,422 | 48 | |
| Homes England | (957,287) | 2,218,747 | 1,261,460 | 1,176 | 57,554 | 163 | 213,037 |
| Leasehold Advisory Services | (50) | 1,491 | 1,441 | 17 | 1,187 | 6 | 50 |
| Planning Inspectorate | (12,015) | 63,833 | 51,818 | 763 | 47,771 | 20 | 12,015 |
| Regulator of Social Housing | (12,480) | 22,788 | 10,308 | 203 | 13,322 | 5 | 12,442 |
| The Housing Ombudsman | (18,153) | 18,527 | 374 | 327 | 9,015 | 14 | 18,153 |
| Valuation Tribunal Service | 5,757 | 5,757 | 58 | 2,533 | 1 | ||
| Departmental Group2 | (8,545,172) | 41,001,586 | 32,456,414 | 5,657 | 357,410 | 633 | 7,758,614 |
1 The entities shown are the ALBs consolidated to form the financial statements in this Annual Report and Accounts. Note 23 provides details of the status of the ALBs above and other departmental ALBs not consolidated. 2 The balances allocated to each ALB are after deduction of transactions between the ALBs. This may result in differences to the financial statements presented in the underlying ALBs’ Annual Report and Accounts. These form the Departmental Group totals that can be seen in the SoCNE on page 120 and in the table of Average Number of Persons Employed on page 80.
Annex B: Returning Officer expenditure
The following tables provide further detail on the breakdown by election of the impact on the financial statements and disclosures of reimbursing Returning Officer costs of holding national elections.
SoPS 1.1 Election Expenditure
| £’000 | ||||||||
|---|---|---|---|---|---|---|---|---|
| 2022-23 | 2021-22 | |||||||
| Outturn | Estimates | Outturn | ||||||
| Type of spend (Resource) | Gross | Income | Net Total | Net Total | Virements | Total inc. virements | Outturn vs Estimate, saving/(excess) | Prior Year Outturn Total |
| Spending in Departmental Expenditure Limit (RDEL) – DLUHC Housing and Communities | ||||||||
| Non-voted expenditure | ||||||||
| Returning Officers’ expenses England, Wales and Scotland | ||||||||
| Elections | (82) | – | (82) | 7,700 | – | 7,700 | 7,782 | 54,929 |
| UK Parliamentary elections: | ||||||||
| - 2019 UK Parliamentary General Election | (1,243) | – | (1,243) | – | – | – | 1,243 | (536) |
| - 2022 UK Parliamentary by-elections | 1,499 | – | 1,499 | 1,800 | – | 1,800 | 301 | 2,438 |
| - 2021 UK Parliamentary by-elections | 271 | – | 271 | – | – | – | (271) | 2,438 |
| - 2019 UK Parliamentary by-elections | (17) | – | (17) | – | – | – | 17 | 2,438 |
| - Petition to recall an MP | – | – | – | 600 | – | 600 | 600 | (4) |
| Police and Crime Commissioner Elections: | ||||||||
| - 2021 Police and Crime Commissioner Election | (134) | – | (134) | – | – | – | 134 | 51,168 |
| - 2020 Postponed Police and Crime Commissioner election | 97 | – | 97 | – | – | – | (97) | (1,025) |
| - 2021 Police and Crime Commissioner by-elections | (546) | – | (546) | 5,000 | – | 5,000 | 5,546 | 2,908 |
| - 2019 Police and Crime Commissioner by-elections | (9) | – | (9) | – | – | – | 9 | (20) |
| Candidate mailings | – | – | – | 300 | – | 300 | 300 | |
| Total non-voted | (82) | – | (82) | 7,700 | – | 7,700 | 7,782 | 54,929 |
SOPS 3
Removal of non-voted budget items:
| £’000 | |||
|---|---|---|---|
| 2022-23 | |||
| SoPS Note | Outturn | Estimate | Outturn vs Estimate, saving/(excess) |
| Returning Officers’ expenses, England, Wales and Scotland | (82) | 7,700 | 7,782 |
| – 2019 UK Parliamentary General Election | (1,243) | - | 1,243 |
| – 2022 UK Parliamentary by-elections | 1,499 | 1,800 | 301 |
| – 2021 UK Parliamentary by-elections | 271 | – | (271) |
| – 2019 UK Parliamentary by-elections | (17) | – | 17 |
| – Petition to recall MP | – | 600 | 600 |
| – 2021 Police and Crime Commissioner Election | (134) | – | 134 |
| – 2020 Postponed Police and Crime Commissioner election | 97 | – | (97) |
| – 2021 Police and Crime Commissioner by-elections | (546) | 5,000 | 5,546 |
| – 2019 Police and Crime Commissioner by-elections | (9) | – | 9 |
| – Candidate mailings | – | 300 | 300 |
| – Elections bank charges | – | – | – |
Note 4 expenditure
| £’000 | ||
|---|---|---|
| 2022-23 | 2021-22 | |
| Core Department | Core Department | |
| Returning Officers’ expenses England, Wales and Scotland | ||
| (includes conduct of the poll and Royal Mail costs) | ||
| UK Parliamentary elections: | ||
| – 2019 UK Parliamentary General Election | – | – |
| – 2022 UK Parliamentary by–elections | (1,243) | (536) |
| – 2021 UK Parliamentary by–elections | 1,499 | 2,438 |
| – 2019 UK Parliamentary by–elections | 271 | 2,438 |
| – Petition to recall an MP | (17) | 2,438 |
| Police and Crime Commissioner Elections: | ||
| – 2021 Police and Crime Commissioner Election | – | – |
| – 2020 Postponed Police and Crime Commissioner election | (134) | 51,168 |
| – 2021 Police and Crime Commissioner by–elections | 97 | (1,025) |
| – 2019 Police and Crime Commissioner by–elections | (546) | 2,908 |
Statement of changes in taxpayers’ equity
| £’000 | |||
|---|---|---|---|
| General Fund | Revaluation Reserve | Total Reserves | |
| Balance at 31 March 2021 | |||
| Returning Officers’ expenses England, Wales and Scotland | |||
| Consolidated Fund Standing Services - non supply - drawn down: | 58,616 | – | 58,616 |
| 2021 UK Parliamentary by-election | 1,811 | – | 1,811 |
| 2020 Postponed Police and Crime Commissioner election | 2,495 | – | 2,495 |
| 2021 Police and Crime Commissioner by-election | 2,692 | – | 2,692 |
| 2021 Police and Crime Commissioner election | 51,618 | – | 51,618 |
| Balance at 31 March 2021 | |||
| Returning Officers’ expenses England, Wales and Scotland | |||
| Consolidated Fund Standing Services - non supply - drawn down: | 980 | – | 980 |
| 2022 UK Pariliamentary by-election | 980 | – | 980 |
Annex C: Section 70 Grant Payments to Charities
Section 70 of the Charities Act 2006 (the Act) sets out the powers for ministers to give financial assistance to charitable, benevolent or philanthropic institutions and requires that payments made under this power are reported.
| Institution | Payments (£’000) |
Purpose |
|---|---|---|
|
All Souls Serve The City Faith New Deal Pilot Fund |
8 | The Faith New Deal Pilot Fund will fund 16 projects across England to deliver innovative partnership projects. The Faith New Deal pilot will test and strengthen the nature of engagement between national government, local government and faith groups – providing proof of concept of the role faith groups play in supporting communities to address local issues. |
|
Antisemitism Policy Trust Secretariat For The Independent Antisemitism Adviser |
100 | To provide independent advice to Government, drawing on perspectives from Jewish communities, academics and experts on antisemitism, to inform Government policy work and improve the public response to antisemitism |
|
Big Ideas Community Interest Company Foundation Stones |
6 | Foundation Stones supports engagement with the UK public with the UK Holocaust Memorial and Learning Centre |
|
Big Society Capital Limited Social Investment Project |
10,000 | To deliver units of accommodation for families in Temporary Accommodation. This grant follows on from the Social Investment Pilot in FY 20/21 to deliver units of accommodation for those at risk of rough sleeping. |
|
Bosnian Genocide Educational Trust Holocaust Awareness Raising |
30 | Support for Oral History Project |
| Caring For God’s AcreFaith New Deal Pilot Fund | 8 | The Faith New Deal Pilot Fund will fund 16 projects across England to deliver innovative partnership projects. The Faith New Deal pilot will test and strengthen the nature of engagement between national government, local government and faith groups – providing proof of concept of the role faith groups play in supporting communities to address local issues. |
|
Church Revitalisation Trust Faith New Deal Pilot Fund |
200 | The Faith New Deal Pilot Fund will fund 16 projects across England to deliver innovative partnership projects. The Faith New Deal pilot will test and strengthen the nature of engagement between national government, local government and faith groups – providing proof of concept of the role faith groups play in supporting communities to address local issues. |
|
Church Urban Fund Near Neighbours |
500 | To bring people together in communities that are religiously and ethnically diverse, so that they can get to know each other better, build relationships of trust and collaborate together on initiatives that improve the local community they live in, building well connected inter-faith communities with resilient structures for times of need |
|
Windrush Day Grant Scheme |
494 | For the administration of the grant scheme and to support projects and events which celebrate, commemorate and educate about the Windrush Generation and their descendants – including their arrival and contribution to British society. |
|
City Life Church Southampton Faith New Deal Pilot Fund |
109 | The Faith New Deal Pilot Fund will fund 16 projects across England to deliver innovative partnership projects. The Faith New Deal pilot will test and strengthen the nature of engagement between national government, local government and faith groups – providing proof of concept of the role faith groups play in supporting communities to address local issues. |
|
Design Council Planning Reform: Design |
219 | To enable the 25 Design Code Pathfinders to build their capacity and produce design codes that provide certainty to local communities and developers. This will be achieved through a programme of events to provide advice and support for the pathfinders from built-environment experts to review and test their emerging design codes. |
|
Edmonton Methodist Church Faith New Deal Pilot Fund |
79 | The Faith New Deal Pilot Fund will fund 16 projects across England to deliver innovative partnership projects. The Faith New Deal pilot will test and strengthen the nature of engagement between national government, local government and faith groups – providing proof of concept of the role faith groups play in supporting communities to address local issues. |
|
Faith & Belief Forum Faith New Deal Pilot Fund |
41 | The Faith New Deal Pilot Fund will fund 16 projects across England to deliver innovative partnership projects. The Faith New Deal pilot will test and strengthen the nature of engagement between national government, local government and faith groups – providing proof of concept of the role faith groups play in supporting communities to address local issues. |
|
Faith Matters Tell Mama |
841 | To encourage people to report instances of anti-Muslim hatred via Tell MAMA and carry out community engagement to educate people about anti-Muslim hatred and improve the recognition and reach of Tell MAMA in communities |
|
Hereford Diocesan Board Of Finance Faith New Deal Pilot Fund |
39 | The Faith New Deal Pilot Fund will fund 16 projects across England to deliver innovative partnership projects. The Faith New Deal pilot will test and strengthen the nature of engagement between national government, local government and faith groups – providing proof of concept of the role faith groups play in supporting communities to address local issues. |
|
Holocaust Educational Trust Holocaust Memorial And Learning Centre |
74 | Support for Tackling Antisemitism on University Campuses |
|
Holocaust Educational Trust Lessons From Auschwitz Universities |
362 | Support for Tackling Antisemitism on University Campuses |
|
Holocaust Memorial Day Trust Holocaust Memorial Day |
900 | Support for the UK’s annual Holocaust Memorial Day |
|
Holocaust Survivors’ Friendship Association Holocaust Awareness Raising |
26 | Support for Memorial Gestures in the North of England Project |
|
Institute of Structural Engineers Confidential report on structural safety (Cross) Expansion - Phase 4 |
180 | For setting-up and maintaining a functional framework for Collaborative Reporting for Safer Structures UK (CROSS-UK) to strengthen its capacity to receive fire and structural safety reports. |
|
Institute of Structural Engineers Confidential report on structural safety (Cross) Expansion – Phase 5 |
344 | For setting-up and maintaining a functional framework for Collaborative Reporting for Safer Structures UK (CROSS-UK) to strengthen its capacity to receive fire and structural safety reports. |
|
Inter Faith Network For The UK Interfaith Network For The UK |
250 | To promote understanding and cooperation between organisations and people of different faiths across the country |
|
Interfaith Wolverhampton Faith New Deal Pilot Fund |
94 | The Faith New Deal Pilot Fund will fund 16 projects across England to deliver innovative partnership projects. The Faith New Deal pilot will test and strengthen the nature of engagement between national government, local government and faith groups – providing proof of concept of the role faith groups play in supporting communities to address local issues. |
|
Ishami Foundation Holocaust Awareness Raising |
25 | The 100 Stories project reinforces the UK Holocaust Memorial and Learning Centre’s mission to commemorate the victims of genocide and remind visitors of the importance of resisting antisemitism, racism and prejudice in all forms |
|
Jewish Action For Mental Health Faith New Deal Pilot Fund |
94 | The Faith New Deal Pilot Fund will fund 16 projects across England to deliver innovative partnership projects. The Faith New Deal pilot will test and strengthen the nature of engagement between national government, local government and faith groups – providing proof of concept of the role faith groups play in supporting communities to address local issues. |
|
Mission In The Economy Faith New Deal Pilot Fund |
125 | The Faith New Deal Pilot Fund will fund 16 projects across England to deliver innovative partnership projects. The Faith New Deal pilot will test and strengthen the nature of engagement between national government, local government and faith groups – providing proof of concept of the role faith groups play in supporting communities to address local issues. |
|
Muscular Dystrophy UK hanging Places Toilets Fund |
217 | To provide bespoke training sessions; dedicated advice and support; support with complex queries; registration of completed Changing Places toilets; promotion and publicity. This was a shared objective and aligned closely with Muscular Dystrophy UK’s wider charitable aims to promote better access to society for disabled people |
|
Ostro Fayre Share Foundation Strengthening Faith Institutions |
450 | To strengthen and support places of worship of all faiths in order to improve governance, increase their capacity to engage with women and young people, challenge intolerance and develop resilience |
|
Safe Families For Children Faith New Deal Pilot Fund |
58 | The Faith New Deal Pilot Fund will fund 16 projects across England to deliver innovative partnership projects. The Faith New Deal pilot will test and strengthen the nature of engagement between national government, local government and faith groups – providing proof of concept of the role faith groups play in supporting communities to address local issues. |
|
The Cinnamon Network Faith New Deal Pilot Fund |
52 | The Faith New Deal Pilot Fund will fund 16 projects across England to deliver innovative partnership projects. The Faith New Deal pilot will test and strengthen the nature of engagement between national government, local government and faith groups – providing proof of concept of the role faith groups play in supporting communities to address local issues. |
|
The Linking Network Schools Linking |
94 | To develop and facilitate effective links between schools of different demographic backgrounds, creating sustained social mixing and supporting them to develop a positive, cohesive ethos. |
|
Torbay Deanery Faith New Deal Pilot Fund |
120 | The Faith New Deal Pilot Fund will fund 16 projects across England to deliver innovative partnership projects. The Faith New Deal pilot will test and strengthen the nature of engagement between national government, local government and faith groups – providing proof of concept of the role faith groups play in supporting communities to address local issues. |
|
Transforming Plymouth Together Faith New Deal Pilot Fund |
100 | The Faith New Deal Pilot Fund will fund 16 projects across England to deliver innovative partnership projects. The Faith New Deal pilot will test and strengthen the nature of engagement between national government, local government and faith groups – providing proof of concept of the role faith groups play in supporting communities to address local issues. |
|
Trinity Safe Space Faith New Deal Pilot Fund |
114 | The Faith New Deal Pilot Fund will fund 16 projects across England to deliver innovative partnership projects. The Faith New Deal pilot will test and strengthen the nature of engagement between national government, local government and faith groups – providing proof of concept of the role faith groups play in supporting communities to address local issues. |
|
Ummah Help Remembering Srebrenica |
200 | To commemorate and raise awareness of what happened in the Bosnian genocide of 1995, and commit to using the lessons from Srebrenica to tackle hatred and intolerance in the UK |
| **Wiener Library Institute Of Contemporary Holocaust Holocaust Remembrance And Education |
78 | To support those whose relatives were murdered in the Holocaust to search historical records |
|
Women’s Aid Federation Women’s Aid Routes To Support |
194 | To enable women experiencing gender-based violence to access safe accommodation, help and support, and influence national and local policy |
|
Women’s Aid Federation No Women Turned Away Project |
194 | To enable women experiencing gender-based violence to access safe accommodation, help and support, and influence national and local policy |
|
Zion Projects Faith New Deal Pilot Fund |
43 | The Faith New Deal Pilot Fund will fund 16 projects across England to deliver innovative partnership projects. The Faith New Deal pilot will test and strengthen the nature of engagement between national government, local government and faith groups – providing proof of concept of the role faith groups play in supporting communities to address local issues. |
| TOTAL | 17,062 |
Annex D: European Regional Development Fund
European Regional Development Fund (ERDF).
The information in the following paragraphs gives additional information about entries included in the financial statements and notes regarding the ERDF.
The ERDF was set up in 1975 to stimulate economic development in the least prosperous regions of the European Union (EU). The department acts as Managing Authority (the organisation responsible for the efficient management and implementation of the programme) currently for the 2014-2020 programme and previously for the 2000-06 and 2007-13 programmes. In London, ERDF continues to be delivered by an intermediate body, the Greater London Authority (GLA). A more limited range of Managing Authority functions has been delegated to devolved intermediate bodies either as part of the delivery of the mainstream ERDF programme or Sustainable Urban Development element.
Under the terms of the EU-UK Withdrawal Agreement, which was signed in January 2020, the UK will continue to participate in the EU programmes funded through the current 2014-20 Multiannual Financial Framework (which includes ERDF). There will be no change to the existing arrangements for the current EU funded operation.
Within ERDF when project expenditure is not in accordance with ERDF regulations it becomes ineligible for ERDF grant funding. The department seeks to recover such ineligible expenditure from grant recipients in the first instance. Where recovery is not possible or feasible, the liability ultimately falls to the department to manage and, where appropriate, write off.
ERDF income is recognised once the relevant claim has been certified by the department’s ERDF Certifying Authority team. Payments to projects that were made by the department have been treated as current asset inventories on the Statement of Financial Position (31 March 2023: £ 459 million, 31 March 2022: £343 million) and only transferred to expenditure on certification.
All projects have an associated intervention rate. This is the percentage of project expenditure which can be funded by the ERDF. Projects can be offered an ERDF grant at differing intervention rates but claims made to the European Commission (EC) are based on a combination of the priority axis (the policy theme) and the GDP-based category of the region’s intervention rate. Differences therefore arise between the amounts claimed from the EC and that paid out to projects. The differences between these amounts are posted to the Statement of Financial Position either as current asset inventories (31 March 2022: £0, March 2021: £0) or as deferred income within current payables (31 March 2023: £665 million, 31 March 2022: £605 million).
During 2020-21 the EC recognised the financial burden on public budgets, due to the response to the COVID-19 pandemic, and to alleviate this burden allowed member states to have the option to request a co-financing rate of 100%. This would allow member states to receive the amount claimed to be paid back at 100% intervention rate between 1 July 2020 and 30 June 2021 to assist in helping with fluidity of cash. This additional funding is held in the deferred income account.
European Regional Development Fund 2014-2020
The department agreed the 2014-20 ERDF Programme in 2015-16 and the first payments were made in June 2016. The programme is expected to close in the first half of 2025. The department has been provided with an initial advance which is held as a payable until utilised (31 March 2023 £ 90 million, 31 March 2022 £86 million). In the 2014-20 Programme, there is an advance for the whole programme plus annual advances paid each year, for use on an annual basis. The last annual advance will be paid in May 2023. Any annual advance not used by the Department has to be paid back to the EC once the ERDF annual accounts have been agreed, however the EC has allowed member states to offset the amount owed against the next year’s yearly advance. The 2014-20 programme differs from the 2007-13 programme as the EC hold back 10% of each requested amount from each payment application made. Once the annual accounts have been agreed this amount is released and is taken from the annual advance, along with any adjusted amounts that have been made to previous payment applications through the annual accounts. The EC will pay any additional monies that are owed to the Department at this stage (31 Mar 2023: £ 120 million, 31 Mar 2022: £150 million).
In 2020 the EC delayed the recoupment of pre-financing, normally occurring at the end of the financial year (February 2020), to improve programme liquidity due to the response to addressing the consequences of COVID 19. This has also resulted in the EC delaying the hold back of 10% payment, due in early 2020, until the closure of the programme in 2025.
From December 2020 the Department made a decision to take up the EC regulation changes to the way Technical Assistance (TA) is calculated and has, from the December 2020 EC payment application, been calculating TA using 4% of eligible expenditure where appropriate. For the December 2020 EC payment application this has resulted in 100% of the TA amount being re-imbursed under the changes to regulations implemented due to COVID-19 pandemic mentioned above.
The Audit Authority function (AA, the designated UK body that audits the ERDF), which is delivered by the Government Internal Audit Agency. In accordance with EU regulation, the AA tested the validity of 58 claims and finalised its testing of expenditure for all but one of these claims. The Audit Authority examined €329 million out of total declared expenditure of €966 million were audited. This statistically representative sample revealed 95% of claims contained less than 2% of error (2% is the EC’s materiality threshold). Most claims (79%) contained zero error. Where errors were identified, they had limited financial impact although they did identify some instances in relation to public procurement breaches (by ERDF beneficiaries) and state aid infringements. A “residual total error rate” for the EC’s 2021-22 accounting period was confirmed at 1.327%, below the EC’s 2% materiality threshold. In their February 2023 annual report to the EC, the Audit Authority provided an unqualified opinion, specifically that:
-
the ERDF accounts submitted to the EC by the department for the EC accounting period 2021-22 give a true and fair view, as established by Article 29(5) of Regulation (EU) No 480/2014;
-
the expenditure in these accounts for which reimbursement has been requested from the Commission is legal and regular; and
-
the ERDF management and control system put in place by DLUHC functions properly.
As part of their routine assurance regime, the EC visited the AA in early March 2023 to undertake a desk review of a sample of the AA’s audits. Whilst some elements of that review is ongoing, the EC have provisionally confirmed the AA’s conclusions on all but one case; this latter case will not have a material impact on the error rate of the ERDF programme or the AA’s unqualified opinion. The EC accepted the departments accounts for ERDF accounting year 2021-22 on 15 May 2023.