12 Mar 2026

The UK Government provides funding to Northern Ireland primarily through the Block Grant to the Northern Ireland Executive, calculated via the Barnett Formula (with a needs-based adjustment to 124% of comparable English spending per the Interim Fiscal Framework).

This forms the core of the Executive’s Departmental Expenditure Limit (DEL) for resource (day-to-day) and capital spending.Additional funding comes from targeted/non-Barnett allocations, specific schemes, and Barnett consequentials from UK-wide measures. As of March 2026 (following the Autumn Budget 2025 in November 2025, Spending Review 2025, and related announcements), here is a comprehensive list of the main UK budget allowances and financial support streams for Northern Ireland.

Core Block Grant and Multi-Year Settlement (Spending Review 2025)

  • Average annual Total DEL: £19.3 billion per year for 2026–27 to 2028–29 (resource + capital), the largest real-terms settlement since devolution in 1998.
  • Per capita comparison: Over 24% more than equivalent UK Government spending in the rest of the UK.
  • Resource DEL growth: Additional ~£1 billion per year on average (via Barnett) for day-to-day spending 2026–27 to 2028–29.
  • Capital DEL growth: Additional ~£220 million per year on average 2026–27 to 2029–30 (via Barnett).
  • Overall progression (approximate, including Barnett and some baselines):
    • 2025–26 baseline: Around £18.2–18.4 billion.
    • Rising to ~£18.8 billion (2026–27), £19.2 billion (2027–28), and £19.8 billion (2028–29).

Key Additional/Targeted Funding from UK Government (Non-Barnett or Earmarked)

  • Autumn Budget 2025 Consequentials: £370–372 million additional (£240 million resource + £130 million capital) over the Spending Review period (phased, e.g., smaller in 2025–26, larger later).
  • 2024 Restoration Financial Package (from prior Executive restoration): £94.6 million resource per year (2026–27 to 2028–29), plus transformation earmarked funds (£59–65 million annually, ringfenced for public sector reform via the Public Sector Transformation Board).
  • Windsor Framework Support: ~£115–122 million resource annually (2026–27 to 2028–29) + smaller capital amounts for trade/Brexit-related measures.
  • City and Growth Deals: Ongoing ~£310 million total (phased to 2029–30) for infrastructure/economic projects.
  • Additional Security Fund (PSNI): £37.8 million per year (2026–27 to 2028–29).
  • Executive Programme on Paramilitarism and Organised Crime: £8 million per year.
  • Casement Park Redevelopment: £50 million (specific allocation, schedule to be agreed).
  • £81 million Electricity Support Scheme (announced Autumn Budget 2025): Over three years (2026–29) to offset environmental levies/policy costs on domestic electricity bills. Equivalent to GB measures but adjusted for NI (one levy doesn’t apply), delivering ~£30 average annual reduction per household for over 850,000 households. Ringfenced; requires legislation and scheme setup (not immediate lump sum; phased delivery starting later in 2026/2027).
  • Other Earmarked/Compensation:
    • Public sector transformation (part of restoration): As above.
    • Private schools VAT compensation: Small amounts (~£0.3 million annually).
    • R&D compensation: ~£2.5 million (2026–27/2027–28).

Other UK-Wide Measures with NI Implications/Barnett Consequentials

  • Energy Bill Reductions (via Renewables Obligation/Energy Company Obligation changes): NI-specific £81 million scheme (as above); GB equivalent saves ~£150/household annually.
  • Household Support Fund Extensions (via Barnett): NI share of UK extensions (e.g., portions of £500 million+ allocations in prior years; devolved discretion on use).
  • UK Shared Prosperity Fund (UKSPF): Continued allocations for 2025–26 (and into 2026); NI-specific delivery by MHCLG with local partners (focus on communities, businesses, places).
  • Other Barnett-Flowed Items: From UK policies like benefit uplifts, NHS/education investments (Executive decides allocation).

These figures reflect Treasury control totals, with the NI Executive allocating via its Draft Budget 2026–2029/30 (consultation closed March 2026; final agreement pending). Funding can adjust via in-year monitoring rounds, Spring Statements, or future events.