Welfare Supplementary Payment schemes extended to 31 March 2028

The Minister for Communities, Mr Lyons, announced on 5 December 2024 that he had secured agreement to extend the welfare mitigation schemes in Northern Ireland that were due to end on 31 March 2025¹. The schemes, which include mitigation of the Benefit Cap and the Social Sector Size Criteria, commonly known as the "bedroom tax", will now run for a further three years to 31 March 2028¹.

The Department for Communities administers a number of Executive approved welfare mitigation schemes¹. Over 38,000 people received a Welfare Supplementary Payment in the 2023/24 financial year, according to the statement, with £23 million paid to mitigate Social Sector Size Criteria deductions and over £1.7 million paid to mitigate the Benefit Cap¹.

The Minister said mitigation payments would continue as they are for both the Benefit Cap and the Social Sector Size Criteria, without the re-introduction of scenarios when exclusions to mitigation may result¹.

The Department has a statutory obligation to produce a report by 31 March 2025 assessing the operation of the existing mitigation schemes¹. The Minister said it was his intention to have the report laid before the Assembly by 31 December 2024¹.

Why it matters for households

People in Northern Ireland who receive a Welfare Supplementary Payment now know the mitigation schemes will continue to 31 March 2028 rather than closing on 31 March 2025¹. The payments cover mitigation of the Benefit Cap and Social Sector Size Criteria deductions, so households affected by those two deductions are the ones whose support is extended¹. The Minister said the extension would provide reassurance for people receiving the support who had been anxious about the outcome of the report and any potential impact on their financial stability, and that it removed concerns about an impending cliff edge from the closure of the schemes¹. The statement gives no change to the amounts paid or to who qualifies; the Minister said payments will continue as they are, without the re-introduction of scenarios when exclusions to mitigation may result¹. The figures reported for 2023/24 are over 38,000 recipients, £23 million paid to mitigate Social Sector Size Criteria deductions and over £1.7 million paid to mitigate the Benefit Cap¹.

What happens next

The Minister said he will bring forward the necessary legislation for the extension of the welfare mitigation schemes in January 2025, giving the Assembly the opportunity to scrutinise and agree to the extension ahead of 31 March 2025¹. The statutory report assessing the operation of the existing schemes is due by 31 March 2025, with the Minister stating his intention to lay it before the Assembly by 31 December 2024¹. No further detail on the content of the legislation has been reported.