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Welfare reform: Penning warns of NI financial penalties Welfare reform: Mike Penning warns 'clock is ticking' on NI financial penalties
(about 1 hour later)
The work and pensions minister has renewed pressure on the Northern Ireland Executive to pass its Welfare Reform Bill. Northern Ireland is facing financial penalties because of welfare reform delay and the clock is ticking, the UK work and pensions minister has warned.
Mike Penning also warned that Stormont faces millions of pounds in penalties because of the delay. Mike Penning has arrived at Stormont to renew pressure on the executive to pass its Welfare Reform Bill.
He is due to meet NI's social development minister in Belfast later. He warned Stormont faces millions of pounds in penalties and said NI ministers must come to an agreement.
After meeting the social development minister, Mr Penning said Nelson McCausland was frustrated by the delay.
The reforms are being introduced at Westminster and include a new universal credit payment to replace child tax credit and housing benefit.The reforms are being introduced at Westminster and include a new universal credit payment to replace child tax credit and housing benefit.
But the legislation is still going through the assembly at Stormont.But the legislation is still going through the assembly at Stormont.
It was pulled by Social Development Minister Nelson McCausland in April, before it could reach the Northern Ireland assembly's consideration stage. It was pulled by Mr McCausland due to lack of agreement in April, before it could reach the Northern Ireland assembly's consideration stage.
A Stormont source has told the BBC that Mr McCausland has tried to bring the bill to the executive repeatedly, the latest attempt being last week.A Stormont source has told the BBC that Mr McCausland has tried to bring the bill to the executive repeatedly, the latest attempt being last week.
The source claimed Sinn Féin was blocking it and the DUP felt very frustrated about this.The source claimed Sinn Féin was blocking it and the DUP felt very frustrated about this.
The Treasury has said the financial implications of delays to Northern Ireland implementing reforms equate to about £5m of lost savings every month.The Treasury has said the financial implications of delays to Northern Ireland implementing reforms equate to about £5m of lost savings every month.
It has said that unless the reforms are introduced in Northern Ireland, the block grant will have to be reduced in order to compensate for lost savings.It has said that unless the reforms are introduced in Northern Ireland, the block grant will have to be reduced in order to compensate for lost savings.
Speaking ahead of the meeting, Mr Penning said he was hoping to find a way forward "to avoid substantial reductions in funding and to ensure there's a system in place that is right for claimants and fair to taxpayers both in Northern Ireland and the rest of the UK".‪Speaking ahead of the meeting, Mr Penning said he was hoping to find a way forward "to avoid substantial reductions in funding and to ensure there's a system in place that is right for claimants and fair to taxpayers both in Northern Ireland and the rest of the UK".‪
"While this is ultimately a devolved matter, I'm concerned about the lack of progress that has been made which has already cost over £30m in lost savings and this figure is increasing by around £5m every month," he said."While this is ultimately a devolved matter, I'm concerned about the lack of progress that has been made which has already cost over £30m in lost savings and this figure is increasing by around £5m every month," he said.
"If this continues we are potentially talking about tens of millions of pounds more that will need to be found elsewhere by the Northern Ireland Executive.‪‪""If this continues we are potentially talking about tens of millions of pounds more that will need to be found elsewhere by the Northern Ireland Executive.‪‪"
Commitment‪Commitment‪
There have been claims that the financial impact is greater in Northern Ireland than other parts of the UK because of the large number of people who claim Incapacity Benefit (IB) and Disability Living Allowance (DLA).There have been claims that the financial impact is greater in Northern Ireland than other parts of the UK because of the large number of people who claim Incapacity Benefit (IB) and Disability Living Allowance (DLA).
Mr McCausland said: "I am committed to taking the Welfare Reform Bill through the assembly as soon as the parties in the executive can agree to move forward to consideration stage.Mr McCausland said: "I am committed to taking the Welfare Reform Bill through the assembly as soon as the parties in the executive can agree to move forward to consideration stage.
"I have developed a package of measures which I believe shapes welfare reform to meet the needs of the people of Northern Ireland."I have developed a package of measures which I believe shapes welfare reform to meet the needs of the people of Northern Ireland.
"I would hope to be able to bring this package, to the executive in the very near future.""I would hope to be able to bring this package, to the executive in the very near future."
Sinn Féin MLA Alex Maskey sits on the social development committee.Sinn Féin MLA Alex Maskey sits on the social development committee.
"We're being threatened basically by the British government to penalise us further for trying to make sure that we represent the interests of the people here, that we represent, that no Tory represents," he said."We're being threatened basically by the British government to penalise us further for trying to make sure that we represent the interests of the people here, that we represent, that no Tory represents," he said.
The Welfare Reform Bill marks the biggest overhaul of the benefits system since the 1940s.The Welfare Reform Bill marks the biggest overhaul of the benefits system since the 1940s.
Mr McCausland has also said the Northern Ireland Executive received £6.5bn from the Treasury through tax credit and social security, with the contribution from the National Insurance Fund in Northern Ireland amounting to £2.5bn.Mr McCausland has also said the Northern Ireland Executive received £6.5bn from the Treasury through tax credit and social security, with the contribution from the National Insurance Fund in Northern Ireland amounting to £2.5bn.
He warned that should the executive fail to agree welfare reform and therefore break with GB parity there was a "potential £4bn" shortfall for Northern Ireland's budget.He warned that should the executive fail to agree welfare reform and therefore break with GB parity there was a "potential £4bn" shortfall for Northern Ireland's budget.