Department for Communities confirms funding decisions for the delivery of social security in Northern Ireland in light of restricted 2023/2024 Budget

Discretionary support funding cut to £20 million from £40 million last year, while no funds are available to recruit the additional staff needed to deliver an increasing universal credit caseload

The Department for Communities (DfC) has confirmed its funding decisions for the delivery of social security in Northern Ireland in light of its restricted 2023/2024 Budget.

The DfC's allocations under the 2023/2024 Northern Ireland Budget – announced by the Secretary of State for Northern Ireland Chris Heaton-Harris on 27 April 2023 in the absence of a Northern Ireland Executive since the resignation of the First Minister in February 2022 – produced a funding gap of £111.2 million (15.5 per cent) and a capital shortfall of £59 million (27.3 per cent) and, as a result, the Department last month sought views on the 'most challenging budget in recent history' in an Equality Impact Assessment.

Announcing the completion of the first stage of the consultation yesterday, the DfC Permanent Secretary Colum Boyle said –

'I would like to thank everyone who responded … Over 180 individuals and organisations provided submissions, which we considered carefully in the Department’s decision-making process.

Working closely with our delivery partners, we have sought to mitigate the significant and adverse impact of this sub-optimal budget across the vast array of public services and support delivered by the Department.

Our shared priority remains supporting the most vulnerable and at-risk in our society, however, difficult decisions had to be made to live within the funding available.'

Mr Boyle went on to confirm funding decisions within the limited budget available including limited mitigations for the following programmes and services –

  • a £20 million budget allocation for discretionary support grants;
  • sustained funding at last year’s levels for the Supporting People Programme; and
  • a £2 million funding increase for homelessness interventions.

NB – the Department advises in relation to the discretionary support budget that while it has been set above the baseline budget of £13.7 million, last year the topped-up total spend on grants was £40 million.

In relation to its spending decisions on the delivery of social security, the Department provides further explanation in its draft outcome report on the Equality Impact Assessment, advising that –

  • no cuts are proposed for advice sector funding, in particular given the need to support those claimants impacted by the 'Move to UC';
  • no funding is available to recruit the additional staff required to deliver an increasing universal credit caseload or to implement the Move to UC for tax credits and legacy claimants, to address increasing levels of fraud or the IT infrastructure required to support benefit and pensions delivery – a position which the Department says is not without significant risk and will greatly exacerbate the pressure already being felt in operational benefit delivery areas, with potential impact on service delivery;
  • existing welfare mitigation will be met in the discretionary support grant allocation including for the Universal Credit Contingency Fund – so that people applying for discretionary support while awaiting their first universal credit payment, including those transitioning under Move to UC, will not be affected; and
  • implementation of recommendations arising from the independent review of discretionary support will not be progressed and will be a matter for an incoming Executive.

In addition, acknowledging that the real terms cut in discretionary support grant funding will affect claimants with protected characteristics, the DfC advises that –

'The Department is currently considering available data to better understand the likely impact and to identify any mitigating steps that may be taken.

The Department will also conduct a discretionary support-specific Equality Impact Assessment to better understand the impact of the reductions and will review its approach in the Autumn including consideration at that time of findings of the Assessment.'

For more information, see Department outlines final budget allocations and DfC Budget 2023/2024 – Draft Equality Impact Assessment Outcome Report from ni.gov.uk