Extra £400m to support health and education in Northern Ireland

An additional £400 million is to be made available to Stormont to support public services in Northern Ireland.

Finance Minister John O’Dowd said the reserve claim from the Treasury would be repaid over three years.

The UK Government has said the funding will be accompanied by an “open book exercise looking at the Executive budget”.

The money will be divided between two Stormont departments which were facing significant overspends.

The Department of Education will receive £214.6 million and the Department of Health will be given £185.4 million.

Mr O’Dowd said: “Following intense negotiations and recognition of the significant financial challenges faced by the Executive, the Treasury has agreed to provide a reserve claim of £400 million for 2025/26 which will be repaid over three years.

“The Executive remains committed to safeguarding public services, and this approach will allow us to spread costs over a longer period, reducing pressure on those services.

“While this flexibility is welcome, it does not cover the full forecast overspend.

“We must therefore continue to reduce the overspend, and I remain committed to working with ministerial colleagues to manage the remaining pressures.”

Mr O’Dowd added: “The Executive is committed to meaningful reform of how public services are designed and delivered.

“I am keen to ensure that the level of funding provided to the Executive meets the growing demand for public services here.

“I will continue to engage with the Treasury on the three-year budget and a proper funding model for the Executive.”

Northern Ireland minister Matthew Patrick told the Commons on Wednesday that it was “exceptional” funding being provided by the Government.

He said: “It will be repayable over three years, and will be accompanied by an open book exercise looking at the Executive budget.”

A UK Government spokesperson said: “While the Executive is funded above Northern Ireland’s independently assessed level of need, the UK Government has granted a reserve claim on an exceptional basis to protect public services, in light of its forecast overspend this year.

“It is repayable in future years.

“The Government has agreed to work with the Executive to conduct an open-book exercise with a view to determining the best way forward for the Northern Ireland budget.

“This process will strictly adhere to the principles of devolution.

“We welcome the Executive’s commitment to continue working together to balance the Northern Ireland budget from 2026-27, and deliver the changes that public services need to ensure that they work for the people of Northern Ireland, and are sustainable long-term.”

DUP leader Gavin Robinson said it was a “clear example of Westminster and Stormont working together”.

He said: “Northern Ireland’s public services are under severe strain, and this reserve funding provides vital short-term flexibility.

“I am pleased that the Government recognised the strength of the arguments we put forward and we have been able to bring these discussions to a position which delivers for our schools and our hospitals.

“This was a clear example of Westminster and Stormont working together.

“It is equally important to recognise that this is exceptional funding.

“The commitment to an open book, line-by-line assessment of Executive budgets is therefore both reasonable and necessary.

“Accountability must sit at the heart of public spending.

“Last year’s end point should not automatically become this year’s starting point.”

A reserve claim is a call on a Treasury fund that exists to cover unforeseen, unavoidable and unaffordable spending pressures.

SDLP Opposition leader Matthew O’Toole warned the reserve claim “risks simply pushing problems into future financial years”.

He said: “It feels like the Executive is engaged in one never-ending credit card balance transfer without ever gripping the situation.

“It also appears there is no progress on delivering a multi-year budget, which was promised by the Executive.

“A multi-year budget is key to putting Northern Ireland on a sound financial footing and addressing long-term challenges in areas like health, housing and other public services.”

Mr O’Toole added: “This situation typifies this Executive’s sticking plaster approach that has left our public services in ruin, with so little progress since the return of Stormont.

“It’s all too likely that this money will be swallowed into Stormont’s black hole, with the Finance Minister going back to London in a year’s time looking for more cash – while simultaneously blaming London for the situation in the first place.”