Lyons welcomes opportunity to secure share of benefit fraud savings in Northern Ireland

Communities Minister Gordon Lyons has welcomed HM Treasury's agreement to consider a proposal to share back savings from tackling benefit fraud and error in Northern Ireland.

Speaking after a meeting of the Communities Committee at the Northern Ireland Assembly, Minister Lyons said: 

“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.

“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.

“The return on investment here is around 8:1 so this is a really significant development.”

The agreement means that a Welfare Fraud and Error Business Case can now be submitted to the Treasury ahead of this year's Autumn Budget.

If fraud and error savings forecast in the business case are certified by the Office for Budget Responsibility, HM Treasury will consider providing a share of the savings to the Northern Ireland Executive.

Minister Lyons added:

 “This is an important step forward and something I have been calling for over a prolonged period.

“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 agreement came after Minister Lyons wrote to Executive colleagues on the matter and the Finance Minister subsequently engaged with the Chief Secretary to the Treasury.

The Fresh Start Agreement of 2015 stated that Northern Ireland would be given the opportunity to bid for a share of fraud and error savings if those savings could be demonstrated and verified by the Office for Budget Responsibility.