The UK Government has offered the Northern Ireland Executive a financial package worth more than £1.5 billion in an attempt to break the continuing deadlock over its budget.
Northern Ireland Secretary Sir Chris Bryant announced the package following discussions with parties in the Executive and the Chief Secretary to the Treasury.
The offer includes £1.25 billion of additional funding over three years, alongside separate allocations for public-service reform, social housing and tackling fraud and error in the benefits system.
What is included in the £1.5bn package?
According to the Northern Ireland Office, the proposed package includes:
- £1.25 billion of extra funding for the Northern Ireland Executive over three years;
- £150 million for the transformation of public services;
- £100 million for social housing; and
- £75 million to address fraud and error in the benefits system.
Together, the measures are worth more than £1.5 billion.
Government urges Executive to agree a budget
Bryant urged Northern Ireland's party leaders and Executive to use the proposed funding as the basis for reaching a balanced budget agreement.
He said the continuing absence of an agreed budget was leaving public services and people in Northern Ireland facing uncertainty.
The package is an offer from the UK Government and has not, at the time of the announcement, become an agreed Northern Ireland Executive budget settlement.
Executive told to find efficiencies and raise revenue
The Northern Ireland Secretary said the additional funding was being offered at a time of significant pressure on the wider UK public finances and when other government departments were being required to make savings.
He also said the Executive would need to recognise the wider financial position, find efficiencies and raise additional revenue as part of moving towards a sustainable budget.
Those requirements are part of the UK Government's position in the continuing negotiations over Northern Ireland's finances.
Months of disagreement over Northern Ireland finances
The Northern Ireland Executive has been unable to agree a final multi-year budget despite a draft budget being published earlier in 2026.
First Minister Michelle O'Neill and deputy First Minister Emma Little-Pengelly met Prime Minister Andy Burnham in August to press for what they described as a fair and sustainable funding settlement for Northern Ireland.
The Prime Minister subsequently said he was determined to find a solution to the Executive's budget difficulties, with the Northern Ireland Secretary taking the work forward.
Offer now before Northern Ireland parties
The latest announcement represents a significant new UK Government offer intended to help resolve the dispute, but agreement is still required among the parties responsible for the Northern Ireland Executive.
The confirmed position is therefore that more than £1.5 billion has been offered by the UK Government. It should not yet be described as an agreed budget or final settlement.