Communities Minister Gordon Lyons has expressed his satisfaction with HM Treasury's decision to consider a proposal that would enable Northern Ireland to retain a share of savings generated from tackling benefit fraud and error.

This potential agreement could redirect substantial funds back into local public services.

Speaking after a Communities Committee meeting at the Northern Ireland Assembly, Minister Lyons stated: "I'm happy to announce that we have received confirmation from the Chief Secretary to the Treasury that a proposal to share back savings from our work to tackle benefit fraud and error will be considered. This is money that normally goes back to the Treasury but we have the opportunity now to reclaim that to invest in public services in Northern Ireland. The return on investment here is around 8:1 so this is a really significant development." This commitment from the Treasury paves the way for the submission of a Welfare Fraud and Error Business Case ahead of this year's Autumn Budget. Should the projected savings outlined in the business case be certified by the Office for Budget Responsibility, HM Treasury will then consider allocating a share of these savings to the Northern Ireland Executive.

Minister Lyons highlighted the importance of this breakthrough: "This is an important step forward and something I have been calling for over a prolonged period. This is a bold and innovative initiative and I'm pleased that I now have the support of the Treasury in taking this forward."

The agreement materialised following Minister Lyons' communication with Executive colleagues, which led to the Finance Minister engaging directly with the Chief Secretary to the Treasury. This development aligns with the 2015 Fresh Start Agreement, which stipulated that Northern Ireland would have the chance to bid for a share of fraud and error savings, provided they could be verified.