Stormont crisis threatening welfare mitigation payments

Our Political Correspondent Jordan Moates looks at the latest area to be put under stress by the lack of power-sharing.

Press Association
Published 20th Jul 2017
Last updated 20th Jul 2017

There are fears mitigation payments for some welfare claimants are at risk because of the stalemate at Stormont.

Welfare reform has been one of the most contentious issues in recent years, but the deadlock was broken in the Fresh Start Agreement in 2015 with a £500m mitigation package deal.

Some of the measures have already been introduced as various changes have been made but those associated with Universal Credit have yet to be triggered.

A key element is a payment top-up scheme for low-income working families to help with employment expenses. But for that to happen it requires legislation in the Assembly before the introduction of the credit in the autumn

The process of transferring existing claimants of the discontinuing benefits won't get underway for another two years so there is a bit of time to find a solution for them. However for new claimants if there is no Executive in place to bring forward the legislation then they will lose out.

The Northern Ireland Office has refused to confirm if it would step in to pass the required laws to allow the support payments to go ahead during the political stalemate.

A spokesperson restated its commitment to restoring the executive and said it's for the Assembly to take forward the legislation

Asked whether the Government would delay the introduction of UC in Northern Ireland or step in to legislate over the Assembly's head, an NIO spokesman declined to be drawn.

The UK Government is committed to restoring devolved government in NI and will not speculate on any other outcomes,'' he said.

The Fresh Start Agreement is clear that it is for the NI Executive and Assembly to take forward the mitigation schemes in relation to Universal Credit.''

A spokeswoman for Stormont's minister-less Department for Communities (DFC) confirmed legislation was required to set up the UC mitigation schemes.

DFC has worked closely with NIO and DWP (Department for Work and Pensions) to ensure both the primary legislation and the regulations to enable the introduction of Universal Credit in Northern Ireland are in place at Westminster,'' she said.

It is planned Universal Credit will be introduced in Northern Ireland on a phased geographical basis from September 2017.

The department will communicate with customers in advance of implementation.

Mitigation schemes are already in place for legacy benefits, eg, JSA (Jobseekers' Allowance) and ESA (Employment and Support Allowance).

Further legislation will be required to extend these mitigation payments to Universal Credit. Such legislation will be dealt with by the NI Assembly.

In the absence of a sitting NI Assembly, then such legislation would be considered in line with whatever arrangements were put in place to deal with this and all other pending NI legislation."