New public spending category PDEL is a welcome and could have big impact | Heather Stewart
The Preventative Departmental Expenditure Limit will be money ringfenced in the budget for preventive policies John Healey’s debut budget was far from a blockbuster, but it may com
By The Guardian
A new ringfenced category for preventative spending will be introduced at the 2027 Spending Review, Chancellor John Healey has announced.
The Preventative Departmental Expenditure Limit, known as PDEL, is intended to protect programmes that deliver benefits over a longer period and reduce future costs.
The measure was announced in the 2026 Budget. The Government said it would support a longer-term approach to public spending by helping departments identify and protect investment in prevention.
The Budget document said PDEL would help facilitate shared resources and accountability between budget holders. It would also protect programmes whose benefits may not be seen immediately.
The Local Government Association welcomed the recognition of prevention and early intervention, saying the new spending category could help protect programmes that generate longer-term benefits.
One example given in the Budget was funding to tackle rough sleeping. The Government said £432 million announced in the Budget would provide immediate support while also reducing the future public cost associated with people sleeping rough.
That cost was estimated by the Government at around £14,000 per person each year.
The Treasury is expected to set out how preventative spending will be defined and tracked. Departments will have to make the case for individual projects to be included in the new category.
PDEL is due to be introduced through the 2027 Spending Review.