Welfare reforms: Stormont agrees to extend mitigations

PA Media Stormont's Parliament BuildingsPA Media
Disagreement between the DUP and Sinn Féin had held up a resolution on the issue

Stormont ministers have agreed to extend welfare mitigations in Northern Ireland for a further three years.

The legislation aims to soften the impact of welfare reforms by helping people who would have been affected by the so-called bedroom tax.

The issue had been stalled due to disagreement between the Democratic Unionist Party (DUP) and Sinn Féin.

They differed over how long to extend the mitigations for.

The DUP wanted the measures to continue for a maximum of three years, while Sinn Féin had proposed an indefinite extension.

Last month, Communities Minister Deirdre Hargey said her paper to extend the law permanently had been blocked from the executive by the DUP 39 times.

She had previously objected to the DUP's proposal, arguing that it would impose another "cliff-edge".

Pacemaker Deirdre HargeyPacemaker
Deirdre Hargey says the support for an extension of the mitigations means hundreds of families will receive help

But she submitted a fresh paper to the executive with a new end date of 31 March 2025 for the measures, along with a requirement to review them again in 2024-25.

Ministers met early on Monday morning and agreed to the proposal but the legislation will need to be fast-tracked in order to become law before the Stormont assembly election next May.

The mitigations had previously been due to end in March 2020 before being extended temporarily but Ms Hargey had committed to closing the loopholes.

'Really positive move'

After the decision to extend the mitigations, Ms Hargey said it "ensures low-paid workers, families and vulnerable people will continue to be protected from the bedroom tax".

"It will also close loopholes, meaning that over 600 families with children who are denied payments, will receive them.

"In the face of increasingly tough economic conditions and a cost-of-living crisis facing low-paid workers and families, this is a really positive move."

First Minister Paul Givan tweeted that thousands of people would be supported by the decision.

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People supported by the mitigation receive it in the form of a top-up payment to their benefits.

Currently, a loophole means someone will no longer receive that payment if they move to a new property.

Alphotographic Sterling coins and banknotesAlphotographic
Benefit top-up payments are given to those who are supported by the welfare mitigations

At present, claimants can also only receive mitigating payments on a benefit if they were receiving it in 2016, when the mitigations were introduced.

The bedroom tax had been due to take effect in Northern Ireland in 2017.

Under it, people who receive welfare payments would have had their housing benefit reduced if they had one or more spare bedrooms.

The tax was expected to cost those affected an average of £20 a week.

Ulster Unionist MLA Andy Allen said it had taken "far too long" for the agreement on the mitigations.

"It is imperative this cliff edge situation doesn't arise again in three years," he said.

"Simply kicking the can down the road is not acceptable."

Last month, Advice NI and Prof Eileen Evason - who had helped the Stormont parties to agree the initial welfare mitigations package in 2015 - urged the executive to continue supporting those most in need in Northern Ireland.