THE fate of a fund earmarked to help families affected by tax credit cuts remains up in the air after George Osborne yesterday ditched his controversial plans.
Last week's Fresh Start agreement included £240 million that would help working families deal with the impact of hits to household income expected over the next four years.
But the Tory chancellor's u-turn now has the potential to create a rift between the DUP and Sinn Féin over where Stormont's £60m-a-year fund will go.
It is thought republicans are keen to see the money added to a package already allocated to help those losing out on welfare reforms, whereas the DUP want to consider other spending options.
On Wednesday night a statement from the Office of First Minister and Deputy First Minister, the Stormont department which is leading implementation of A Fresh Start, was non-committal about the destiny of the £240m.
"The executive remains committed to doing all we can to support those in need," it said.
"While we welcome today’s [Wednesday's] announcement on tax credits, the chancellor's full statement will need to be studied in detail to ascertain what the implications are for the most vulnerable and low-income families."
DUP finance minister Arlene Foster said the executive would now give consideration to where the tax credit funds would go.
She added that a reduction to the north's block grant over the coming years meant there could be other areas more deserving of the cash than benefit recipients.
Meanwhile, Sinn Féin has responded to Green Party leader Steven Agnew's claim that a significant slice of the Fresh Start's £585m welfare mitigation fund is old money repackaged.
Mr Agnew believes a Social Security Agency emergency fund is being cut and the money moved to the new welfare package.
The budget for so-called 'discretionary fund' has been more than £80m for each of the past three years but is expected to be £15.5m this year.
However, Sinn Féin's Alex Maskey accused the North Down MLA of "baseless scaremongering".
The West Belfast MLA said last week's agreement said the welfare mitigation fund did not include the entire £80m used for discretionary measures.
"The majority of this money – £65 million per year – comes directly from the British government and will continue to do so under the new universal credit arrangements," he said.
"Let me be absolutely clear, these discretionary facilities and supports remain in place – they are not being cut and will be financed entirely separate from the £585m welfare package in the agreement."
