Giving Northern Ireland civil servants a pay increase of more than 3% does not appear affordable, the Finance Minister has said.
Caoimhe Archibald said her preference would be to make an award in excess of 3%, but she said the current state of the Executive’s finances would not make that possible.
The administration is overcommitted by £180 million for this financial year.
Ms Archibald said a 3% pay award would be “particularly difficult to defend” if awards to other public sector workers are higher.
She also noted that civil servants in Whitehall are set to get a 5% increase.
The minister made the comments in a paper circulated to Executive colleagues as they met this week to deliberate on the monitoring round allocation of around £700 million in additional resource and capital funding directed to Northern Ireland as a consequence of the Westminster Government’s Budget.
Stormont is still facing a projected £180 million shortfall for 2024/25, despite the funding boost from Chancellor Rachel Reeves’ Budget.
This has placed a question mark over the Executive’s ability to deliver recommended pay awards to public sector workers, raising the prospect of renewed industrial action over pay.
Health Minister Mike Nesbitt refused to agree to the October monitoring round allocation, which saw his department receive an extra £350 million.
Despite receiving 57% of the total resource funds shared among departments, Mr Nesbitt insisted he is still £100 million short of the money he needs to make pay awards of at least 5.5% to all health staff.
Ms Archibald has responsibility for issues related to civil servants’ pay.
The minister met with union representatives on Tuesday to discuss the issue.
In the Executive paper issued by the minister, seen by the PA news agency, Ms Archibald said a pay uplift of 3% for civil servants was incorporated into the 2024/25 budget planning exercise.
She made clear the figure was for planning purposes only and did not provide any indication of the pay award being considered.
“As I have highlighted earlier, trade unions have already indicated that they do not consider this an acceptable award for NICS staff,” Ms Archibald added.
“It will be particularly difficult to defend if awards to other pay groups are materially higher.
“In addition, the Cabinet Office has published the 2024-25 pay remit guidance, which is for civil servants below the senior civil service, which confirms that Whitehall departments will be able to offer an average pay award of up to 5%.
“My preference would be to provide NICS staff with an award higher than the 3% planning assumption, unfortunately, that does not appear affordable with the current level of overcommitment, however should easements become available later in the year I would want to revisit this.”
In regard to Ms Archibald’s meeting with the Civil Service unions on Tuesday, a spokeswoman from the Department of Finance said: “The Finance Minister sought a meeting with recognised Civil Service trade unions as soon as possible following the October monitoring round.
“At the meeting the minister reiterated her commitment to working constructively with unions on Civil Service pay and her desire for negotiations to start as soon as possible.”