‘£173m lost to Northern Ireland public purse’ over welfare reform deadlock

By The Press Association13th January 2017News Northern IrelandBenefits, Government / Politics, News Northern Ireland, Welfare / Benefits, Welfare Reform

Not implementing welfare reform has cost the public purse in Northern Ireland £173 million, the finance minister said.

The money was deducted from the block grant which funds public services between 2013 and last year because changes introduced in the rest of the UK were not brought into Northern Ireland.

Finance Minister Mairtin O Muilleoir (pictured) said the cash was used to protect the most vulnerable from cuts.

Ulster Unionist Assembly member Andy Allen said: “This is £173 million that should have been spent on our schools, hospitals and roads.

“Instead it was lost to the Northern Ireland public purse as a result of the incompetence and inability of the DUP and Sinn Fein to agree a position on welfare reform.

“It is an absolute outrage that as we were being fined, charities were laying off staff and domiciliary care places for the elderly were being slashed due to a shortfall in public funds.”

Extra money provided by Stormont to make up for cuts to the overall welfare budget at Westminster was a key plank in an earlier agreement to save power-sharing. It had been a central Sinn Fein demand.

The Finance Minister told Mr Allen the reduction to Executive spending was £173 million.

He added: “Of course, this must be viewed in the context of the protection it provided for some of the most vulnerable in society by ensuring no financial loss was suffered by those in receipt of welfare payments.”

The looming implosion of the power-sharing institutions following Martin McGuinness’s resignation as deputy first minister means the ministerial executive is unable to meet to sign off further payments.

Stormont ministers are at odds over whether cash to support those losing out under the Government’s “bedroom tax” can still be distributed amid the devolution crisis.

Otherwise known as the social sector size criteria, the Government welfare reform on housing benefit will be introduced in Northern Ireland next month.

While Communities Minister Paul Givan’s department has stated that Executive approval is required, Mr O Muilleoir has insisted otherwise.

The Sinn Fein minister published a letter from his senior civil servant, David Sterling.

Mr Sterling wrote: “I am content having taken legal advice that from a legal perspective the 2016 Budget Act provides sufficient legislative authority to make Bedroom Tax mitigation payments.

“This will cover any expenditure up until the end of March 2017.”

After that separate pre-existing legislation will be sufficient to ensure payments continue, Mr Sterling added.

The Budget Act does not provide for the terms and conditions of any scheme, including who can be paid mitigation payments and how much they may be paid.

Mr Sterling added: “However, there is no legal reason why these matters cannot be determined administratively.”

Mr Givan later published his own legal advice from his department.

He said he would press ahead with the payments by by-passing the executive and bringing legislation directly before the Assembly, potentially as early as next week.