Block Grant: Northern Ireland

HM Treasury written question – answered on 3rd July 2015.

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Photo of Lord Hay of Ballyore Lord Hay of Ballyore DUP

To ask Her Majesty’s Government what effect the failure to pass the Welfare Reform Bill in Northern Ireland has had, in financial terms, on the block grant to Northern Ireland.

Photo of Lord O'Neill of Gatley Lord O'Neill of Gatley The Commercial Secretary to the Treasury

As a result of the Northern Ireland Assembly’s inability to pass welfare reform legislation, the Northern Ireland Executive’s allocation has been reduced by £13m in 2013-14, £87m in 2014-15 and £114m in 2015-16 to offset foregone cost savings which would otherwise have accrued. The Executive have been aware of the level of the deduction since March 2014.

Following the exceptional access to the reserve granted to the Northern Ireland Executive in 2014-15, the Executive’s 2015-16 allocation has been reduced by £100m in 2015-16 in accordance with normal budgetary procedures.

These deductions will be reflected in the control totals published alongside departmental Main Supply Estimates for 2015-16.

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