Legislation for welfare mitigation scheme extension planned

The Minister for Communities, Mr Lyons, told the Assembly on 5 December 2024 that he had secured agreement to extend the welfare mitigation schemes that were due to end on 31 March 2025, for a further three years to 31 March 2028¹. The schemes include mitigation of the Benefit Cap and Social Sector Size Criteria, commonly known as the bedroom tax¹. Legislation for the extension is to be brought forward in January 2025¹.

The Department for Communities administers a number of Executive approved welfare mitigation schemes in Northern Ireland¹. Over 38,000 people received a Welfare Supplementary Payment 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 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 are affected. The payments mitigate the Benefit Cap and Social Sector Size Criteria deductions, and the extension runs to 31 March 2028 rather than ending on 31 March 2025¹. 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 Minister also said extending the schemes would have a positive impact for many people across Northern Ireland and help protect the most vulnerable in society¹. The rates and amounts paid under the schemes are not set out in the statement; the figures given cover the 2023/24 financial year only¹.

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 was intended to be laid before the Assembly by 31 December 2024, ahead of the 31 March 2025 deadline¹.