Northern Ireland (Welfare Reform) Bill (Allocation of Time)

Stephen Hepburn Excerpts

Monday 23rd November 2015 Commons Chamber

[Mrs Villiers]

My hon. Friend makes a fair point. We have to get a move on with implementation. We do not want the “Fresh Start” agreement to suffer the same fate as the Stormont House agreement, implementation of which stalled relatively early on. It is important we do all we can to move ahead with implementation.

[Mr Stephen Hepburn (Jarrow) (Lab)]

Is this not a massive climbdown by the Government? I say good luck and well done to the parties that stood out against the Government and their nasty welfare reforms. Should the Government not now fund a welfare system on the mainland in the same way as they are funding one in Northern Ireland with a £500 million bung to places such as Newry, Belfast and Omagh?

[Mrs Villiers]

I would describe the outcome of the cross-party negotiations as a sensible compromise. The welfare reforms we have introduced in Great Britain, which we think are a better system, will be implemented in Northern Ireland, but from its own resources—from the block grant. The Northern Ireland Executive have made the reasonable and legitimate decision to top up some of those benefits.

I go back to my previous remarks. The cost of a computer system would be massive. Budgets for other Departments would have to be cut significantly to pay for a more expensive welfare system, with an inevitable impact on front-line services and capital spending available for crucial infrastructure such as road improvements, almost all of which would probably be swallowed up by the need to build a new computer system. That scenario would undermine the credibility of the devolved institutions but, even more importantly, do irreparable damage to the political relationships that are central to making power-sharing devolution work in practice.

Last December in the Stormont House agreement, the Northern Ireland parties agreed to take forward welfare reform as part of a wider package of measures. It is well known, however, that by March this year progress had begun to founder, when the two main nationalist parties withdrew their support for the Assembly legislation on welfare reform. On 26 May, that legislation passed its final stage, with the backing of three of the five main parties then in the Executive, but was blocked by the other two parties using the petition of concern, meaning that it did not have the necessary cross-community support, so by June we were once again faced with almost complete deadlock. The Executive then passed a budget that was based on an assumption that welfare reform would ultimately be adopted, but which would exceed the controlled totals available from the block grant if it was not.