ULSTER Unionist leader Mike Nesbitt says he has a way of partially resolving the welfare impasse without affecting the Barnett Formula.
His compromise is based on drawing down British government funds on the basis of addressing regional mental health problems which are a legacy of the Troubles.
As fresh negotiations began last night, the UUP leader said London had already conceded the principle of funding legacy issues.
"There is no reason why the UK Government should not offer additional funds for Northern Ireland's mental health issues which are legacy and not covered by the Barnett Formula, and therefore, unlike welfare, have no implications for Scotland or Wales," he said.
"Additionally, there is some £20m to £25m of legacy money for the Historic Inquiries Unit and Independent Commission on Information Retrieval that will be lost to the NI Executive this financial year, due to the impasse in implementation of the Stormont House Agreement."
Mr Nesbitt said his proposal would run over five years and work under the terms of the Stormont House Agreement.
