Welfare Mitigation Payments Extended

Welfare mitigation payments, which were due to end in March 2025, will now continue for an additional three years.

The decision was announced by Communities Minister Gordon Lyons following a meeting of the Executive.

The Welfare Supplementary Payment (WSP) schemes, designed to help mitigate the impact of social security reforms, will remain in place until March 2028. These schemes include payments for those affected by the Benefit Cap and the Social Sector Size Criteria, often referred to as the 'bedroom tax'.

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."

Over 38,000 people received a WSP in the 2023/24 financial year, with £23 million paid to mitigate Social Sector Size Criteria deductions and over £1.7 million paid to mitigate the Benefit Cap.

The projected funding requirement for the complete mitigations package for 2025/26 is £47.3 million which includes funding for the Universal Credit Contingency Fund, the advice sector and Social Supermarkets, as well as administration costs.

Minister Lyons also confirmed that 'loopholes' in the payments criteria which previously existed would 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."

The Department for Communities has a statutory obligation to produce an assessment of existing mitigation schemes by 31 March 2025. Minister Lyons also stated his intention to have the report laid before the Assembly by 31 December 2024.