Northern Ireland's public sector workers face an uncertain Christmas as the Stormont Executive remains unable to agree a budget, leaving pay awards in limbo. The Department of Finance's top civil servant confirmed on Wednesday that it is too late for any civil service pay settlement before Christmas due to the ongoing lack of a budget.

Departments have been operating without a budget since April and can only spend up to 95% of last year's funding. The Executive has insisted it cannot balance its books without more financial support from London, but the UK government says no more money is available beyond the £1.5bn already offered over three years.

Northern Ireland Secretary Sir Chris Bryant accused ministers of being financially irresponsible and has set a January deadline for a deal, after which emergency spending arrangements will run out. He is meeting party leaders in Belfast on Thursday for further talks.

First Minister Michelle O'Neill said the situation is dire and that public sector pay is the top priority, but she accused the British government of acknowledging underfunding while refusing to provide enough money.

At Westminster, Prime Minister Andy Burnham told the Commons that the UK government had found extra money and it was now up to Stormont parties to set a budget and get the institutions functioning.

Health workers are particularly affected, with hospital doctors announcing strikes next month and the Royal College of Nursing balloting for industrial action. The finance committee heard that more than 20,000 civil servants will not see a pay increase in their Christmas pay packets.

Union representatives expressed frustration that formal negotiations over civil servant pay have not begun. Robert Murtagh of the FDA said civil servants are collateral damage and that unions are ready to engage as soon as a budget is agreed.

SDLP MLA Matthew O'Toole said ordinary workers are paying the price for the executive's failure, pointing to political rows between Sinn Féin and the DUP as distracting from the core issue.