Stormont department warns it is facing £111m funding gap after budget

Stormont’s Department for Communities has warned it is facing a £111.2 million resource funding gap following the recent budget.

The department, which is responsible for a wide range of services including social security delivery, employment support and funding for culture, arts and leisure, has said its allocation is 15.5% short of what was required.

It said that proposed saving measures could include reductions in services and support provided for social security delivery and discretionary support grants.

Northern Ireland Secretary Chris Heaton-Harris recently set a budget for the region in the absence of devolved ministers at Stormont.

Several Stormont departments have since warned they are facing significant challenges.

The Department for Communities (DfC) is the latest to release its assessment of the budget implications as part of a process of engagement with staff, arm’s length bodies, delivery bodies and stakeholders.

The budget settlement provides the DfC with resource funding of £861.6 million, capital funding of £216.1 million and £25.6m of financial transactions capital.

The department said this represents a resource funding gap of £111.2 million (15.5%) and a shortfall of £59 million (27.3%) in capital required for 2023-24.

It said the position is compounded by resource reductions of £290 million over the last decade.

An Equality Impact Assessment consultation is to be launched seeking views on the potential implications of the budget.

The department has more than 9,000 staff and accounts for almost a third of the Civil Service workforce in Northern Ireland.

Saving measures required will have “adverse impacts” on services and support provided, the department said.

Areas proposed for a funding reduction include social security delivery, discretionary support grants, employment support, arm’s length bodies and third party organisations, rates support grants for councils and the Supporting People programme.

The department also anticipates it will be able to achieve only 1,400 new social housing starts in the next year, against a target of 2,000.

The department currently has almost 600 staff vacancies, but only essential recruitment will be undertaken.

A spokesperson said: “The department is committed to an open and transparent decision-making process and the high-level proposals are to be shared with staff, trade unions, delivery partners and representative groups in a series of meetings.

“The Department for Communities is the largest department in the Northern Ireland Civil Service.

“Its broad remit includes a range of areas, such as benefits delivery, social housing, the historic environment, community regeneration, sport and culture.

“It supports the most disadvantaged people, families and communities across Northern Ireland.

“It does so against a backdrop of growing need.”

Seamus Leheny, from the Northern Ireland Federation for Housing Associations, said any cuts in the number of social houses built was a “retrograde step”.

He added: “We are acutely aware that the housing waiting list is growing, and if we are serious about tackling the waiting list more needs to be done to help housing associations build homes right across Northern Ireland.

“Cuts in the budget for the Social Housing Development Programme will be a retrograde step and will not help the many families who are waiting on a home.

“A safe, warm home is so closely tied to outcomes in life, including health and education.

“While we know difficult decisions are ahead, we hope that the importance of the social housing sector, and its economic and social impact is recognised when budgets are being set.”