A rates deferment scheme for pensioners is to be introduced in Northern Ireland, the Finance Minister has said.

The move is a result of last year's Executive review of rating, and will enable home owning pensioners to defer their rate payments.

This could provide a further payment option and alleviate pressures on pensioners' pockets.

Minister Nigel Dodds said: "In taking forward the rating reforms we have already shown that local people and local views can shape and influence the decision making process.

"The consultation process undertaken last year went way beyond identifying what was wrong with the system and presented ideas on how it could be changed for the better."

The Minister noted broad support for the proposal.

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He said: "In light of the consultation responses I have decided to reduce the eligible age for home owning pensioners from 65 to 60, subsequently increasing in line with changes to pensionable age.

"I have also decided that independent financial advice will not be made compulsory prior to an applicant entering a deferment agreement. However, I want to stress that this will be strongly recommended given the long term financial commitment involved.

"Finally, the interest rate levied will be the Bank of England base rate minus 1% - in light of current economic uncertainty the Department will reserve the power to introduce a minimum interest rate threshold," explained Mr Dodds.

The Minister pointed out that the scheme was not a new relief or allowance, but rather it will provide a further payment choice.

He cautioned against viewing it as an investment decision, adding: "This will be a serious financial commitment for any applicant, involving administrative and legal costs in setting up the property charge and securing independent advice.

"It is there, however, as a safety net for pensioners, particularly those who are ineligible for low income rate relief and yet are having to contend with ever increasing household bills on a fixed pension.

"Many are facing hard choices, and this scheme will at least remove the issue of rates from their day to day budgeting," he added.

The measures are expected to be introduced by early 2010.