Communities Minister Gordon Lyons has announced the extension of welfare mitigation payments, which were initially set to conclude in March 2025. These payments will now be extended for an additional three years following today's Executive agreement.
The Welfare Supplementary Payment (WSP) schemes, designed to soften the blow from changes to the social security system, will continue beyond their original end date. This includes payments to counteract the Benefit Cap and the Social Sector Size Criteria, often referred to as the bedroom tax, with most payments continuing until March 2028.
Minister Lyons said: "The extension of mitigation payments for a further three years will provide reassurance for those people in receipt of this support who may have been concerned about their future financial stability.
"I recognise the importance of tackling poverty through the social security system and was determined to secure this extension to remove any ‘cliff edge’ resulting from the schemes’ closure.
"Extending these mitigation schemes will have a positive impact for people across Northern Ireland and will help to protect the most vulnerable in our society."
The past financial year saw over 38,000 individuals benefit from a WSP, with £23 million allocated to mitigate deductions due to the bedroom tax and more than £1.7 million to offset the Benefit Cap.
The estimated funding requirement for the full mitigation package for 2025/26 is £47.3 million, which includes funds for the Universal Credit Contingency Fund, the advice sector and Social Supermarkets, as well as administrative costs.
Minister Lyons confirmed that 'loopholes' in the payment criteria that previously existed will not be reintroduced in the updated legislation.
"I have ensured that the removal of the 'loopholes' in the updated legislation will mean that those who are most in need of this support will receive it," he stated.
The Department for Communities has a statutory obligation to produce an assessment of existing mitigation schemes by 31 March 2025.
Minister Lyons also expressed his intention to present the report to the Assembly by 31 December 2024.
Sinn Féin MLA Colm Gildernew welcomed the announcement that the Executive has agreed to extend welfare mitigations until 2028.
The party's communities spokesperson said: "It is positive news that the Executive has today agreed to extend welfare mitigations to 2028 to protect our most vulnerable in society."
"The mitigations package, which includes support for people affected by the transition from DLA to PIP, the benefit cap and bedroom tax, continues to play a crucial role in protecting people against some of the worst aspects of Tory cuts.
"While the previous Communities Minister Deirdre Hargey removed the end date for the bedroom tax, the remaining mitigations required Executive agreement to continue beyond March 2025.
"I want to acknowledge the role of organisations such as the Cliff Edge Coalition and others who have tirelessly campaigned around this and other issues associated with mitigation against cuts.
"Moving forward, the Labour government must break with the Tories’ old ways, and build a fairer benefits system that supports workers and families."
SDLP West Tyrone MLA Daniel McCrossan added: "I welcome the extension of welfare mitigations that will remove the threat facing vulnerable people across the North who would have been left facing a very difficult situation if these mitigations were removed.
"However, we cannot forget that the reason people on welfare are forced to face this cliff edge situation every few years is because Sinn Féin and the Alliance Party joined with the DUP to hand welfare powers to a Tory government with a policy of crippling austerity and they have spent the intervening years trying to spin their way out of it.
"Like in 2021, people will now have another three years of respite until this situation rears its ugly head again. What we actually need to see is the Executive bringing forward permanent solutions so that nobody in the North has to worry about facing the Bedroom Tax or having this important welfare support stripped away from them every few years.
"The SDLP Opposition will also be holding the Executive to account on the delivery of additional welfare mitigations including, removing the five week wait for Universal Credit, delivery of the Larger Families Payment for families impacted by the two-child rule and support for private renters impacted by the Local Housing Allowance."
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