Welfare Mitigation Schemes Statutory Report
The Department for Communities currently delivers a number of Executive approved welfare mitigation schemes, which are designed to alleviate the financial impacts of specific changes to the social security system. These mitigation schemes, known as Welfare Supplementary Payments (WSPs) are specific to Northern Ireland, and the Department has sole responsibility for the development and implementation of the policy, legislation and operational delivery including the supporting IT infrastructure.
WSP schemes
The following WSP schemes were introduced, as agreed in the Stormont Fresh Start Agreement and Implementation Plan (published in November 2015) and continue to be in operation:
- Benefit Cap
- Social Sector Size Criteria (commonly referred to as the “bedroom tax”)
- Time-limiting of Contributory Employment and Support Allowance
- Transition to Personal Independence Payment
- Loss of Carer Payments
- Loss of Disability-Related Premiums
The Welfare Supplementary Payments (Amendment) Act (Northern Ireland) 2022, that received Royal Assent on 27 April 2022, introduced a statutory requirement on the Department for Communities to produce a report setting out the Department’s assessment of the operation of each of the ongoing WSP schemes by 31 March 2025. This assessment covers the period from when the Act came into operation and includes a summary of proposals in respect of the schemes.
The WSP schemes are the principal element of the package of ‘welfare mitigations’ agreed by the Northern Ireland Executive in 2016. As such, the ongoing welfare mitigations funding administered by the Department for Communities covers not only the current WSP schemes, but also funding for the Universal Credit Contingency Fund, the independent Advice Sector and Social Supermarkets. While the Welfare Supplementary Payments (Amendment) Act did not include a requirement to report on these areas, to ensure a comprehensive picture of welfare mitigations in Northern Ireland, it was decided to include a brief update on their performance in this report.
The report was laid in the NI Assembly in December 2024 and can be viewed using the link below.