The Executive agreed on the proposals to continue with the existing rates support scheme for an interim period, and to making up the funding shortfall that will occur due to reductions in Treasury Funding.

The UK Government will abolish the existing council tax benefit in April 2013 under welfare reforms, and cut the budget of its replacement by 10%. Northern Ireland runs a similar scheme for domestic rates. Responsibility for successor schemes will be devolved to the UK's regions and nations, including Northern Ireland. Following the Executive’s approval of the proposals, which were put forward from the Executive Sub Committee on Welfare Reform, the Minister stated: "The Executive has now agreed to the continuation of the current rates support element of Housing Benefit, for an interim period that should last no longer than 24 months. The Executive will need to find up to £13million a year to cover the funding gap for this period.

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"In rightly deciding to protect the most vulnerable in our society, we must recognise that this will come at a cost to other areas of spend. Clearly this is unwelcome, particularly in these difficult times, but I want to reassure the community that I am pressing the UK Government, at every opportunity, about the case for Northern Ireland. My Assembly Statement on Tuesday of this week on new access to End Year Flexibility highlights some recent success in this regard."

The Department for Social Development, supported by my Department, are preparing a strategic paper on the way forward which is to be presented to the Welfare Reform Executive Sub-Committee before summer recess.

"This decision means that the Executive will now have more time to analyse the impacts that Welfare Reform will have, and to put in place alternative support arrangements that are fit for purpose in terms of protecting the lowest income households in Northern Ireland and aligning with other aspects of Welfare Reform."

(CD/GK)