The Communities Minister said the Executive could now reclaim it to invest in public services
Communities Minister Gordon Lyons has hailed the HM Treasury’s willingness to deliberate on a proposal that would allow Northern Ireland to retain a portion of savings made by combating benefit fraud and error.
Minister Lyons expressed his satisfaction after a session with the Communities Committee at the Assembly, stating: “I’m happy to announce that we have received confirmation from the Chief Secretary to the Treasury that a proposal to share back savings from our work to tackle benefit fraud and error will be considered.”
He highlighted the potential local benefits, adding, “This is money that normally goes back to the Treasury but we have the opportunity now to reclaim that to invest in public services in Northern Ireland.”
Lyons emphasised the proposal’s financial efficacy by noting, “The return on investment here is around 8:1 so this is a really significant development.”
Following this agreement, a Welfare Fraud and Error Business Case can be presented to the Treasury for review during this year’s Autumn Budget.
Should the Office for Budget Responsibility validate the business case’s forecasted savings, HM Treasury will discuss allocating a share of these funds to the Northern Ireland Executive.
Minister Lyons mentioned the importance of this progress: “This is an important step forward and something I have been calling for over a prolonged period.”
He concluded optimistically about the initiative: “This is a bold and innovative initiative and I’m pleased that I now have the support of the Treasury in taking this forward.”
The accord was reached following a letter from Minister Lyons to his Executive colleagues, which led to the Finance Minister liaising with the Chief Secretary to the Treasury.
The Fresh Start Agreement of 2015 stipulated that Northern Ireland would have the chance to bid for a portion of fraud and error savings, provided these savings could be proven and validated by the Office for Budget Responsibility.
For all the latest news, visit the Belfast Live homepage here and sign up to our politics newsletter here.
