Education Minister Paul Givan stated that the method for allocating budgets to Stormont departments requires fundamental change. He made the comments amid financial pressures on the Northern Ireland Executive for public services.

Givan specified that meeting public sector pay commitments must serve as the starting point for budget distribution. His department allocates 82% of its budget to staff pay, while other departments use around 30% for that purpose.

He criticised the existing process of basing allocations on prior spending with incremental increases. Instead, funding should reflect contractual obligations such as pay, according to Givan.

The minister called for greater involvement from the Treasury. He noted an additional £400 million provided to Stormont via a reserve claim, to be repaid over three years, to aid public services.

Givan advocated opening departmental finances to Treasury scrutiny for a longer-term funding deal. He has released a sustainability budget plan with specific proposals requiring Treasury support.

He described the current education system as unsustainable both financially and for pupil outcomes. Last month, Givan issued a five-year budget strategy that proposes fewer schools and integration of special educational needs support into mainstream settings.

Givan acknowledged the need for difficult Executive decisions to ensure effective spending. He pointed to a declining birth rate, with pupil enrolments projected to drop 13% over the next decade, making some small schools unviable.