NIO Annual Report and Accounts 2024/25 (accessible version)

Question 1

1. Performance Report

Accepted Answer

1.1 Foreword from the Secretary of State for Northern Ireland

I am pleased to present the Northern Ireland Office Annual Report and Accounts for 2024-25 to Parliament - the first report I have presented as Secretary of State for Northern Ireland. At the outset, I want to pay tribute to my predecessor Chris Heaton-Harris for the pivotal role he played in supporting the political leaders in Northern Ireland to take the courageous step to restore the Northern Ireland Executive.

The return of power-sharing in February last year was a significant moment, allowing Northern Ireland to take another step forward. To support further progress, my priorities have focused on working with all parties and communities, including resetting our relationship with the Irish Government, to uphold the Good Friday Agreement and ensure the stability of devolved government.

Since taking office, I have focused on building a new relationship between the UK Government and the Northern Ireland Executive which will allow us to tackle the challenges that Northern Ireland faces, particularly in relation to productivity, economic inactivity, generating investment and economic growth, and helping to improve the delivery of public services.

The allocation of a £18.2 billion settlement for 2025/26 for the Northern Ireland Executive is the largest in real terms in the history of devolution. This settlement provides a strong foundation for stability and growth and has supported the Executive in developing a Budget Sustainability Plan and Investment Strategy. This collaboration is crucial for the development of a longer-term fiscal framework for Northern Ireland.

In partnership with the Executive, we have worked together on public sector transformation, creating a new Board to oversee £235 million in funding for new initiatives. Given the complementary nature of the UK Government’s Plan for Change and the Executive’s nine priorities, we now have a strong foundation to drive innovation, share best practice across the UK, and enhance public service delivery.

The UK Government has also shown its commitment to protecting Northern Ireland’s place in the UK internal market and working to deliver the Safeguarding the Union Command Paper – the basis on which devolution was restored. We are implementing the Windsor Framework in good faith, with maximum pragmatism and proportionality, to ensure Northern Ireland can benefit from its unique trading position. To further this, we have established Intertrade UK to boost trade across the UK and the East-West Council to enhance trade promotion and connectivity between Northern Ireland and the rest of the UK. Building on our work to champion Northern Ireland as a place to invest, these developments help to enhance trade and protect the UK internal market and support Northern Ireland’s economy to thrive in the longer term.

I am also pleased that during the year, the threat level in Northern Ireland reduced to SUBSTANTIAL having been marked as SEVERE for most of the previous ten years. I will continue to ensure that close collaboration is maintained with our security partners efforts to keep our communities safe and the increase of £37.8 million in funding for the Police Service of Northern Ireland through the Additional Security Fund, combined with our £8 million contribution for the Executive Programme on Paramilitarism and Organised Crime, announced in the October budget, underscores the UK Government’s continuing and steadfast commitment to security.

Finally, while nothing can ease the pain so many families still endure from the Northern Ireland Troubles, this Government takes its responsibilities to victims and survivors extremely seriously. I am committed to helping society heal the wounds of the past. I have undertaken extensive discussions with victims, survivors, and other interested parties to seek their views and published legislation to repeal and replace the Legacy Act. I am committed to ensuring that we have a system in place which can help families who are still searching for answers about what happened to their loved ones.

The Right Honourable Hilary Benn MP
Secretary of State for Northern Ireland

1.2 Permanent Secretary’s Perspective on Performance

In my foreword to last year’s Northern Ireland Office (NIO) Annual Report and Accounts, I paid tribute to the work and the resilience of the department’s staff for their efforts to ensure the successful restoration of the Northern Ireland Executive in February 2024. With the Executive now back in place for over 18 months, I am once again reflecting on the work of colleagues across the department during the 2024-25 reporting period.

Across this period, which included the General Election, the department has worked with Northern Ireland departments and across Whitehall to help ensure that Northern Ireland delivers on its potential. Following the Chancellor’s 2024 Budget, Northern Ireland benefits from a substantial £18.2 billion financial settlement for 2025-26, the largest in real terms in the history of devolution. Work to secure this historic funding and agreement on a funding formula that recognises the particular circumstances of Northern Ireland has been complemented through extensive engagement with a wide range of Northern Ireland stakeholders to foster economic growth and budget sustainability, including our work to support the Executive delivering a Budget Sustainability Plan, as well as confirmation of four City and Growth deals.

During this period, we welcomed a new Ministerial team following the General Election in July and have supported Ministerial priorities that seek to strengthen both the UK Government-Northern Ireland Executive relationships as well as British-Irish relations. Through close working with the Executive and other partners we have supported public sector transformation, creating a new Board which will oversee £235m in funding for new initiatives. We have spearheaded new economic initiatives, enhanced trade opportunities and protected the UK internal market including through the establishment of Intertrade UK and the ongoing delivery of the East-West Council.

Since taking up post, the Secretary of State for Northern Ireland has set clear direction for the department, in particular, delivering the manifesto commitment to repeal and replace the previous Government’s Legacy Act. I am immensely grateful to colleagues for their expertise and sustained support to the Secretary of State on this issue, as we seek to bring forward a reformed legacy system that provides answers for families and is compliant with human rights obligations.

Finally, as Accounting Officer, I continue to be extremely conscious of ensuring that the work of the NIO delivers value for money for the taxpayer. This remains a priority for the year ahead.

On a personal note, I am grateful for the support, expertise and dedication that the NIO team and our Non-Executive Directors provide. I am also thankful for the networks and relationships that the department has across Northern Ireland and beyond. I am confident that by continuing to build on those relationships, to focus on delivery, that the NIO will continue to perform effectively into 2025-26 and beyond.

Dr Julie Harrison
Northern Ireland Office Permanent Secretary

1.3 Performance Overview

Our Purpose

The UK Government is clear on the Northern Ireland Office’s purpose and priorities, which are:

Working with the Northern Ireland Executive to transform public services and champion investment opportunity.
Implementing the Windsor Framework and protecting the UK internal market, helping Northern Ireland to stabilise.
Addressing the legacy of the past in Northern Ireland by repealing and replacing the Legacy Act, including by working on the UK Government’s response to relevant judgments in a way that commands the support of the people of Northern Ireland and supports the journey towards reconciliation.

These priorities sit alongside the Secretary of State’s statutory responsibilities, including on National Security. They support the UK Government’s missions and foundations with a focus on economic growth, safer streets and health as well as National Security which is one of the underpinning foundations. They also complement the department’s work to build effective intergovernmental relations and enhance reconciliation.

Vision and Mission

The Northern Ireland Office (NIO) strategic vision is to deliver a stable, prosperous and vibrant Northern Ireland. To achieve this vision, deliver on its priorities, and support the UK Government’s mission and foundation delivery, the department’s work is structured around four interconnected aims:

Improving Northern Ireland’s capability to deliver better public outcomes: to support Northern Ireland’s capability to deliver improved public service outcomes for its people.
Promoting economic growth and investment: to promote growth through championing Northern Ireland as a trade and investment opportunity domestically and overseas.
Building a safer, more reconciled society: to contribute to a Northern Ireland society in which current and future generations feel safer and more reconciled.
Enhancing delivery and ensuring a mission focused NIO: to ensure NIO is delivery and mission-focused by improving efficiency, digital utilisation, equipping staff and maintaining an agile footing.

As the NIO’s work has to understand and respond strategically to deep interdependencies between issues that shape how Northern Ireland functions, across a range of measures, our delivery approach is based on:

Planning for outcomes;
Being agile and productive via our project approach and close team working;
Organising around our relationships and expertise; and
Seeing everything we do through a reconciliation lens.

Further information on the department’s delivery approach and principles can be found at the Northern Ireland Office page of GOV.UK.

Northern Ireland Office Structure

As at 31 March 2025, the Northern Ireland Office employed 156 staff across its offices in Belfast and London.

The departmental Board, and the Executive Committee, oversees and manages the work of the department. Each of these have responsibilities for making sure that the department carries out its work as efficiently as possible and meets legal and other obligations. Further information on the work of the Board and the department’s Committee structures can be found in the Governance Report.

The department’s organisation is centred on the delivery of key objectives and priorities. The department’s senior leadership structure as at 31 March 2025 is shown below:

Senior management Team

((Image of infographic of Senior management Team))

NIO Sponsored Bodies

((Image of infographic: NIO Sponsored Bodies))

Notes:

(1) The Independent Reporting Commission is an International Treaty Body but for accounting purposes it is treated as an Executive NDPB.

(2) The Crown Solicitor is appointed by the Advocate General under Section 35 of the Northern Ireland Constitution Act 1973 but funded via the NIO which acts an Exchequer Department.

In addition to the bodies and entities sponsored by the NIO, the Secretary of State for Northern Ireland also makes appointments to the Equality Commission for Northern Ireland, an executive NDPB sponsored by The Executive Office, which is a department of the Northern Ireland Executive.

Priority Outcomes

The Northern Ireland Office’s (NIO) Outcome Delivery Plan for 2024-2025 sets out the four strategic outcomes that support the departmental vision. They are focused on Economic Growth, Society, Safety and Governance. Our whole department effort is focused on delivering these priority outcomes, maximising the use of the resources available.

Performance Overview (Continued)

With the restoration of power-sharing, an improvement in the security situation from Severe to Substantial and approval of a £3.3bn financial package to stabilise public services and increase investment opportunities, Northern Ireland took a number of positive steps forward at the beginning of 2024 in advance of a new financial year. To build on these developments, at the outset of 2024-25, the department focused on supporting the newly restored Executive, progressing commitments under the Command Paper ‘Safeguarding the Union’ and working with stakeholders across Northern Ireland to support economic growth and public sector transformation.

Following the election of a new UK Government in July 2024, the work of the Northern Ireland Office has focused on strengthening intergovernmental and British-Irish relations, working with the Northern Ireland Executive and wider partners to progress public sector transformation, supporting the institutions, and advancing new economic initiatives, including enhancing trade opportunities and protecting the new UK Internal Market.

The department also supported the new Secretary of State in conducting a series of engagements aimed at having a new system in place for addressing the legacy of the past that wins support from victims’ families, has the confidence of all communities and is compliant with human rights obligations.

Looking ahead, key challenges and risks remain including ensuring the sustainability of public finances, enhancing public service delivery, progressing economic growth, and supporting Northern Ireland and its institutions in its continued journey towards reconciliation. By building on our intergovernmental and wider stakeholder relationships, the department is focused on supporting ongoing delivery and making further progress into 2025-26 and beyond.

Key delivery highlights for 2024-25 include:

£18.2 billion settlement agreed for 2025/26, the largest in real terms in the history of devolution, providing a strong foundation for stability and growth.
Establishment of the East-West Council (with a focus on enhancing trade promotion, connectivity, and culture and skills) and Intertrade UK (to advise on opportunities to promote and boost trade across the UK).
Establishment of a Public Services Transformation Board to oversee £235m funding to support new public sector transformation initiatives.
Independent Commission for Reconciliation and Information Recovery (ICRIR) became operational and work began to repeal and replace the Legacy Act.
£730,000 to facilitate transition of schools towards integrated education.
Supporting the Northern Ireland Executive in their development of a Budget Sustainability Plan for Northern Ireland.
Progressing four City and Growth Deals in Northern Ireland.

Progress against each of the four priority outcomes is set out in the Performance Analysis section below. Further information on work undertaken throughout the year, such as announcements and other publications is available at the News and Communication page for the Northern Ireland Office of GOV.UK.

1.4 Financial Summary

Spending summary highlights for 2024-25

Spend By Budget Classification	2024-25 £m	2023-24 £m	Variance £m

Resource DEL (Voted)	48.4	38.2	10.2
(Departmental operations including depreciation)

Resource DEL (Non-Voted)	6.8	-	6.8
(Election Funding)

AME
(Non-Cash accounting provisions)	4.6	(3.3)	7.9

Capital DEL	12.4	2.6	9.8
(Expenditure on Departmental non-current assets)

Non Budget (NI Executive funding)	23,411	20,899	2,512
Prior Period Adjustment – Resource DEL	-	14.5	(14.5)
Prior Period Adjustment - Capital DEL	-	0.4	(0.4)

Funding

The department’s activities are financed by Supply voted by Parliament. Each year the NIO is given Parliamentary approval for its expenditure when Parliament votes the Main Supply Estimates. Subject to Parliament’s agreement, the estimates may be amended during the year at the Supplementary Estimate stage. The estimates are published by Her Majesty’s Stationary Office (HMSO) and contain details of voted monies for all Government departments. The 2024-25 Supplementary Estimates are available at GOV.UK.

Departmental Expenditure Limit (DEL)

The NIO DEL (budget) for 2024-25 was £70,840k including non-voted expenditure of £6,935k and covers expenditure arising from:

overseeing the effective operation of the devolution settlement in Northern Ireland and representing the interests of Northern Ireland within the UK Government;
expenditure on administrative services;
expenditure arising from the Stormont House Agreement, the Fresh Start Agreement, New Decade New Approach and New Deal for Northern Ireland;
Head of State related costs and VIP visits to Northern Ireland;
Northern Ireland Human Rights Commission and other Reviews and Commissions arising from the Belfast (Good Friday) Agreement, the Northern Ireland Act 1998, the Northern Ireland Act 2000, the Northern Ireland Act 2009, political development and inquiries;
work of the Parades Commission for Northern Ireland;
the Chief Electoral Officer for Northern Ireland, elections and boundary reviews;
Civil Service Commissioners for Northern Ireland;
legal services, security, victims of the Troubles including the work of the Independent Commission for the Location of Victims Remains and arms decommissioning;
compensation schemes under the Justice and Security (Northern Ireland) Act 2007 and Terrorism Act 2000;
arrangements for the running of Hillsborough Castle and certain other grants;
the Independent Reporting Commission; and
the Independent Commission for Reconciliation and Information Recovery

The department’s DEL budget for 2024-25 also includes provision for depreciation and any other non-cash costs.

The department also received income during the year arising from:

Recoupment of electoral expenses;
Receipts from the use of video conferencing facilities;
Fees and costs recovered or received for work done for other departments;
Freedom of information and data protection act receipts;
Recovery of compensation paid; recoupment of grant funding;
Costs and fees awarded in favour of the crown;
Receipts arising from arms decommissioning;
Fees and costs recovered or received for the use of the NIO estate; and
Contributions from third parties to fund grant programmes and monies from other departments to fund projects in Northern Ireland.

During 2024-25, the department received £13.0m additional funding at Supplementary Estimates, of which £10.4m was to provide funding for the Independent Commission for Reconciliation and Information Recovery.

Annually Managed Expenditure (AME)

The department’s AME allocation for 2024-25 was £8.8m and was primarily related to the funding for the ICRIR’s investigative activities. In addition, AME funding also related to provisions relating to litigation claims and leasehold property dilapidations in line with IFRS 16.

Non-Budget Expenditure

Non-budget estimate totalling £25,381m was allocated to cover expenditure arising from:

Providing appropriate funding to the Northern Ireland Consolidated Fund for the delivery of transferred public services as defined by the Northern Ireland Act 1998, Northern Ireland Act 2000 and the Northern Ireland Act 2009; and
Grants to the Northern Ireland Consolidated Fund and transfers of EU funds.

The department’s final resource Estimate for 2024-25 was £25,446m (2023-24: £23,999m) and the department’s final capital Estimate for 2024-25 was £14.21m (2023-24: £11.33m).

Comparison of Estimate and Outturn

Resource

The total outturn shown in the Statement of Outturn against Parliamentary Supply of these Accounts reflects underspend on both the Resource DEL and Resource AME Estimates due to lower than anticipated expenditure on programmes. The net resource outturn for 2024-25 was £23,470m (2023-24: £20,948m) compared with the Estimate of £25,446m (2023-24: £23,999m).

This is a variance of £1,976m (2023-24: £3,051m) which was due to:

£1,970m funds anticipated to be required by the Northern Ireland Executive were not drawn down from the Consolidated Fund.
A £4m underspend in AME due to lower than forecast spend by the ICRIR and foreign exchange differences for the Peace Plus Programme liability.
Other underspends across the remainder of the department and its ALBs due to lower than anticipated expenditure on programmes and services.

Capital

The net capital outturn for 2024-25 was £13.28m (2023-24: £3.01m) compared with the Estimate of £14.21m (2023-24: £11.33m). This is a variance of £0.93m (2023-24: £8.32m). This variance mainly relates to lower than forecast estimates relating to property dilapidations for both the core department and the ICRIR against the capital AME budget.

Net Cash Requirement

The net cash requirement (note SOPS3) outturn was £23,565m (2023-24 £21,240m) compared with the Estimate of £25,551m (2023-24: £24,318m). This is a variance of £1,986m (2023-24: £3,078m). This variance resulted from lower than anticipated drawdowns made by the Northern Ireland Executive during the financial year.

Decisions on how funding to the Executive is spent are managed by the devolved administration and funding is allocated to the Northern Ireland departments by the Department of Finance (DoF). Each of the Northern Ireland departments, including DoF, publishes their own financial statements. Additional information regarding the budgets of the Executive and the grants paid by the NIO to the Northern Ireland Consolidated Fund are included in an Annex at the end of this report.

Statement of Financial Position

The net liabilities at 31 March 2025 of £85m (2023-24: £190m) occurs primarily due to an accrued liability for PEACE PLUS.

This results in the continued material net liability on the Statement of Financial Position. Funding for the programme will be fully met via HMT Estimates processes through Annually Managed Expenditure funding. The recognition of this liability does not raise any uncertainty in relation to the department’s going concern status.

The liabilities are disclosed net of assets, which principally comprise property, plant and equipment of which Hillsborough Castle and its surrounding estate is an asset of £83.9m (2023-24: £83.7m) as the remainder of the other assets and liabilities largely offset.

The financial assets include loans issued to DoF under the National Loans Fund, but these are balanced by corresponding amounts in current and non-current liabilities.

Hillsborough Castle’s most recent valuation was carried out as at 31 March 2025 using indices supplied by Land and Property Services increasing the carrying value by c.£2m, less depreciation charged in year, to c.£83.9m.

External Auditor

These accounts are audited by the Comptroller and Auditor General (C&AG) who is appointed by statute and reports to Parliament on the audit examination. His certificate is included in the Parliamentary accountability and audit report. The audit of the financial statements for 2024-25 resulted in a group audit fee of £444,900 (cash fee £234,900, non-cash fee £210,000) (2023-24: £344,150; cash fee £128,150, non-cash fee £216,000).

The C&AG may also undertake other statutory activities that are not related to the audit of the department’s accounts such as value for money reports. No such reports directly related to the activities of the NIO were published during the year.

Long Term Expenditure Trends

The graph below shows NIO annual DEL expenditure over the past 10 years:

NIO Annual DEL Expenditure (Resource and Capital) 2015-2025

((Image of graph: NIO Annual DEL Expenditure Resource and Capital 2015-2025))

The outturn figures have been adjusted to exclude the impact of significant one-off additional areas of expenditure when additional funding was provided e.g. the European Elections and Assembly Elections in 2014-15, 2016-17, 2019-20 and 2022-23, as well as General Elections in 2015-16, 2017-18, 2019-20 and 2024-25. The increase since 2016 represents additional funding for new areas of expenditure and to address additional pressures e.g. EU Exit, PEACE PLUS as well as increased capital expenditure on IT and infrastructure projects and the decline from 2019-20 largely due to reduced or paused expenditure on items due to Covid-19. In 2021-22 there was additional spend in relation to the Centenary year, EONI Canvass and relocating from Stormont House to Erskine House.

Dr Julie Harrison
Accounting Officer
26 November 2025

1.5 Performance Analysis

The section summarises progress against four strategic priority outcomes and essential enabling activity in 2024-25 over the period in which the election was held and new Ministers took up their roles.

Priority Outcome 1: Economic Growth

Kickstart growth for NI, working across Whitehall, with the good jobs and productivity growth making everyone better off

Economic challenges such as inflation and low growth have continued to place pressure on the Northern Ireland economy and subsequently local households. Together with our partners, the department is developing an economic vision which seeks to address structural weaknesses in the economy, build resilience to deal with challenges brought about by rapid changes in the national and global economy, and create the conditions for transformative economic growth. Key highlights delivered during 2024-25 include:

New Funding Settlement	£18.2 billion agreed for the Northern Ireland Executive for 2025/26, the largest in real terms in the history of devolution, providing a strong foundation for stability and growth.
Trade and Connectivity	Establishment of the East-West Council (with a focus on enhancing trade promotion, connectivity, and culture and skills) and Intertrade UK (to advise on opportunities to promote and boost trade across the UK). Ongoing support for implementing and monitoring the Windsor Framework, including commissioning an Independent Review of the Framework.
Regional Economic Growth	Progressing the four City and Growth Deals in Northern Ireland which include: Belfast Region City Deal (£1bn), Derry City & Strabane District Council City Deal (£250m); Causeway Coast and Glens Growth Deal (£72m) and Mid- South West Region Growth Deal (£252m).
UK Local Growth Funds	Supporting delivery of UK Shared Prosperity Fund in NI (£77m for 24-25) and the Community Ownership Fund (£11.4m for 24-25).
Fiscal Sustainability and Investment	Working with the Northern Ireland Executive to support the development of a Budget Sustainability Plan and Infrastructure Strategy for Northern Ireland.

Priority Outcome 2: Safety

Contribute to a safer Northern Ireland, where terrorist and paramilitary groups are less able to cause harm in communities

While the overall security situation in Northern Ireland is in no way comparable to that which existed during the Troubles, the department continues to work with all delivery partners to support efforts against the enduring threat and harms posed to communities by terrorist and paramilitary groups. The department’s ongoing ambition is to help strengthen democracy and the role of law through supporting the delivery of a range of effective security justice, community and individual interventions. Key highlights delivered during 2024-25 include:

Independent Scrutiny and Governance	Supporting reviews of justice measures to ensure they are appropriate for the needs of the security environment, including facilitating completion of the annual reports of the: · Investigatory Powers Commissioner’s Office. · Independent Reviewer of National Security Arrangements (IRNSA). · Independent Reviewer of Justice and Security (Northern Ireland) Act 2007. · Independent Reporting Commission’s report on progress towards ending paramilitarism. · Sentence Review Commissioners for Northern Ireland.
Transitioning Criminal Justice	Supporting the normalisation of reserved/excepted aspects of the Northern Ireland criminal justice system by: · Monitoring the conditions required to remove Non-Jury Trial provisions and launching a consultation on extending the powers for a further two years. · Scoping potential to develop a paramilitary group transition process including processes to appoint (jointly with the Irish Government) an independent expert to conduct an assessment.
National Security	Responding effectively to national security incidents and civil contingency incidents, as well as: · Providing an assessment, from a Northern Ireland perspective, to inform the development of the Independent Reviewer of Terrorism Legislation Annual Report. · Working across Government to monitor and assess non Northern Ireland – related terrorism National Security risks to Northern Ireland and the rest of the UK. · Updating the Code of Practice (Northern Ireland) for the authorisation and exercise of stop and search powers relating to sections 43, 43a, 43c and 47a of, and schedule 6b to the Terrorism Act 2000. · Securing the PSNI £37.8 million in additional funding, an increase from c£32m a year, a level which had been in place since 2015-16.
Justice and Security and Other Protective Measures	· Ensuring a more effective operation of the authorisation process regarding stop and search powers under the Justice and Security (Northern Ireland) Act 2007 to delivering statutory responsibilities regarding the licensing of explosive precursors, prohibited weapons and firearms. · Delivering protective security measures to those deemed at substantial or greater threat from Northern Ireland Related Terrorism.

Priority Outcome 3: Governance

Ensure that Governance in Northern Ireland is resilient and fiscally responsible in order to deliver effective public services

Instability and a lack of resilience in political structures in Northern Ireland provides a barrier to thriving communities, limiting the delivery of effective public services for the people of Northern Ireland and having an overall detrimental political, social, and economic impact. The UK Government’s priority is to ensure stable and effective devolved government within the Union, in full respect of the principle of consent enshrined in the Belfast (Good Friday) Agreement. Key highlights delivered during 2024-25 include:

Supporting Devolution	Leading a series of engagements with Northern Ireland political parties and governmental stakeholders to support restoration of the Northern Ireland Executive/Institutions and wider intergovernmental relations.
Diplomatic relations	Continuing to build strong diplomatic relations with our partners, such as strengthening our diplomatic presence in Washington and supporting British-Irish governmental relations.
Election processes	Maintaining plans for elections in response to the Secretary of State’s election duties, including implementation of Boundary review and provisions of electoral laws.
Civic engagement	Engaging with 180+ civic organisations and civil leaders across Northern Ireland to discuss their perceptions of current issues and explain Northern Ireland Office policy.

Priority Outcome 4: Society

Support greater integration and reconciliation in Northern Ireland

While the Belfast (Good Friday) Agreement in 1998 has helped to deliver peace and has enabled significant reconciliation, societal change does not happen overnight. In line with the principles of the Agreement, the UK Government remains committed to promoting inclusion, tolerance and openness in the expression of all identities within society, enhancing diversity and social understanding, facilitating integration and addressing the legacy of the past. Key highlights delivered during 2024-25 include:

Public Service Transfor	Establishment of a Public Service Transformation Board, comprising officials from the Northern Ireland Civil Service and UK Government as well as independent experts, to oversee the approval of £235m funding to support new public sector transformation initiatives.
Addressing the Legacy of the past	Completing the legislative passage of the Northern Ireland Troubles (Legacy and Reconciliation) Act 2023 and establishing the Independent Commission for Reconciliation and Information Recovery (ICRIR), which became fully operational on 1 May 2024.
	Establishment of an independent inquiry under the Inquiries Act 2005 into the murder of Patrick Finucane.
Integrated Education	Providing £730k to supporting initiatives in schools to facilitate their transition towards integrated education.
Supporting devolution	Supporting devolution: · Worked closely with partners across UK Government and in the Northern Ireland Executive to deliver key policy and legislation, supporting a UK wide approach in multiple policy areas. · Commenced several provisions of the Identity and Language Act, fulfilling UK Government commitments.

Strategic Enablers

Our strategic enablers sit at the heart of the NIO’s delivery plan and are critical to our success. They include our Estates & Services, Finance, Governance, HR, IT, Knowledge & Information Management, Strategic Planning, Private Office and departmental Security activities.

Over the course of the last reporting period, we have continued to ensure that we focus on living within our means, driving efficiencies, and reducing costs as far as possible. As part of our commitment to supporting continuous improvement, the Northern Ireland Office undertakes an annual review of compliance with those Government Functional Standards which are appropriate for a department of our size and best meet our business needs and priorities. Key enabling activities delivered during 2024/25 include:

Supporting our People	Development of a People Strategy focused on developing a skilled workforce, providing an environment which is an empowering, inclusive and engaging place to work and encouraging an organisation where everyone is accountable for people success.
Workforce Planning	Establishment of a new strategic workforce planning processes to support continuous improvement and new systems for end-to-end recruitment, onboarding and off boarding.
Skills Exchange	Establishment of new processes to support skills exchange between the Northern Ireland Civil Service and the Home Civil Service.
Financial Planning	Development of a financial strategy to support new financial management processes for an increasingly challenging fiscal environment.
Governance	Supporting a new constituted departmental board following the on boarding of new ministers and ensuring continued effective governance processes within the department.
Knowledge Management	Transferring 799 historic files to the National Archives and consistently meeting deadlines and upholding the NIO’s commitment to transparency in respect of FOI responses.
Estates/ IT	Completed the refurbishment of the London Office at 1 Horse Guards Road and supported the Omagh Bombing Inquiry to set up and facilitate their new office accommodation.
Departmental Security	Continuing to make further improvements towards meeting the minimum standards in respect of Physical and Personnel Security and progressed 75 National Security Vetting applications.
Spending Review	Lead the Department’s response to Phase 1 of the 2025 Spending Review to ensure the department is equipped to deliver on the Government’s priorities.

1.6 Corporate Performance

Recruitment Practice

All Civil Service recruitment in the Northern Ireland Office (NIO) is carried out in accordance with relevant employment legislation, including applicable equality and human rights laws, and the Recruitment Principles issued by the Civil Service Commission.

The NIO is committed to being an inclusive employer with a diverse workforce. The department encourages applications from the widest possible diversity of backgrounds, cultures, and experiences to join the department and is focused on building an organisation that understands and values staff with a range of backgrounds, ideas, skills, and experience, as they contribute to greater creativity, innovation, and effective decision making in meeting our strategic objectives.

Public Appointments

As at 31 March 2025, the NIO sponsored four executive Non-Departmental Public Bodies, an advisory Non-Departmental Public Body, and a range of smaller bodies, office holders and other entities. In addition, the NIO has responsibility for making appointments to the Equality Commission for Northern Ireland.

During the reporting period, the Secretary of State for Northern Ireland made the following appointments that were regulated by the Commissioner for Public Appointments:

Re-appointment of the Chief Commissioner of the Equality Commission for Northern Ireland.
Re-appointment of seven Commissioners of the Equality Commission for Northern Ireland and a further appointment of three new commissioners;
Re-appointment of a member of the Boundary Commission for Northern Ireland;
A new appointment to the Northern Ireland Human Rights Commission.

The Commissioner for Public Appointments publishes further information on the department’s regulated appointments, including statistical information, which can be found at the Commissioner for Public Appointments website.

In addition to regulated appointments, the Secretary of State for Northern Ireland also has responsibility for making appointments to a number of statutory and non-statutory positions in public life. In 2024-25, the Secretary of State for Northern Ireland made the following non-regulated appointments:

The appointment of a new Veterans Commissioner for Northern Ireland;
The appointment of members of the new Windsor Framework Independent Monitoring Panel[^1];
The appointment of chair and five members to Intertrade UK[^2];
The re-appointment of two Sentence Review Commissioners for Northern Ireland; and
The re-appointment of the UK Commissioner to the Independent Reporting Commission.

The NIO routinely publishes details of all new and renewed appointments in the news section of our website. Further information on the appointments made during 2024-25 are available at the News and Communications page for the Northern Ireland Office.

Employee Consultation

The NIO recognises the importance of sustaining good employee relations to achieve its objectives. Facilitating a culture of constructive challenge and ongoing consultation with employees, and their representation, is central to that work.

Regular communication and consultation takes place with staff through a variety of channels, including the departmental intranet, weekly all staff meetings, staff bulletins, working groups, and other briefings. More formal consultation exercises also take place with staff, including through the Staff Engagement Group and the Unions, on matters such as organisational change, and changes to staff terms and conditions, when necessary.

During the year, the NIO delivered a wide range of initiatives across the department that help make the NIO a great place to work. This included strengthening the Learning and Development offer and how that offer is communicated to all staff. The NIO’s Diversity, Inclusion and Wellbeing group also delivered a range of sessions and campaigns on Mental Health Awareness, Ramadan Celebrations and Neurodiversity Celebration Week. The NIO’s Culture Club has played an important role in bringing the department’s values to life and supporting our charity partners.

The department worked closely with the Staff Engagement Group, which represents staff across all grades, and took their views on issues, ranging from wellbeing initiatives, and the redevelopment of the London Office space. The NIO also continued to support the Mirror Board, which shadows the work of the departmental Board so that staff can provide views on wider operational and policy matters and contribute to shaping strategic decision-making.

This year, the department continued to embed its People Board, which has responsibility for discussing and taking action in relation to a range of People opportunities and issues on behalf of NIO’s Executive Committee.

There are a number of internal staff networks representing particular interests, including a learning and development volunteer group, and other groups that our staff can access through our relationship with the Ministry of Justice and the wider Civil Service.

Staff Engagement

The NIO participates in the Civil Service annual People Survey that captures employee views on a number of issues. The results from the People Survey form an evidence base to support the department’s people priorities. The results of the annual Civil Service People Survey were published in December 2024. The report, which combines NIO results with those for all Territorial Offices is available at the Civil Service People Survey 2024 Results.

The 2024 Civil Service People Survey saw NIO employee engagement at 70%. This is an increase from 64% in 2023 and higher than the Civil Service average (64%). The top three drivers of engagement were people’s sense of pride when telling others they work for the organisation, a strong personal attachment to the organisation and the organisation inspires me to do the best in my job.

This year’s People Survey showed five out of the nine Core Themes scoring 80% or above, including ‘My Team’, ‘Organisational Objectives’, ‘Inclusion & Fair Treatment’ and ‘My Work’ scores. A People Survey response plan has been agreed by the People Board, focusing on themes including learning and development and bullying, harassment and discrimination.

Diversity and Inclusion

The NIO recognises the importance of embedding diversity in everything that the department does. The department has an active and enthusiastic diversity, inclusion and wellbeing network, who raise awareness on a range of topics including mental health.

In 2024-25, the department continued to embed and implement its Diversity, Inclusion and Wellbeing Action Plan to drive sustained improvements in representation across all levels and to make sure we continue to foster an inclusive workplace culture at the NIO.

The NIO is committed to:

Eliminating discrimination, harassment, victimisation, and other conduct that is prohibited by, or under, equality legislation;
Advancing equality of opportunity between persons who share a protected characteristic, and persons who do not share it; and
Fostering good relations between persons who share a protected characteristic and persons who do not share it.

The NIO is committed to being an organisation where everyone is:

Treated with fairness and respect;
Able to contribute and develop; and
Confident about how to ensure that the work they do supports equality of outcomes for everyone in society.

The NIO’s people management policies and practices reflect the Civil Service Code and build on the equality legislation and legal obligations under Northern Ireland, and UK Law.

Employment, Training and Advancement of Disabled Persons

The NIO is committed to securing, retaining, and developing people with a disability. The department has adopted Ministry of Justice policies for staff-related matters, including making reasonable adjustments, where necessary, for staff with disabilities. During the year, the department continued to monitor and report progress against the published Disability Action Plan that articulates our vision, our priorities, and sets out our measures, to promote positive attitudes towards disabled people, and encourages the participation by disabled people in public life. The plan makes a clear statement of our commitment to implementing our equality duties in relation to disability.

Our Diversity Inclusion and Wellbeing Group includes advocates for the promotion of diversity and inclusion across the whole department, including a lead on disability issues.

Learning and Development

The NIO is committed to supporting the learning and development of all staff to enable them to do their jobs to the best of their ability and to develop the necessary skills for the present and future. The department encourages staff to take up a minimum of five days each year to focus on learning and development, and we maintain a ring-fenced budget year-on-year to support this goal.

Staff at all grades can make use of the Civil Service-Learning portal, as well as on-the-job and face to face learning. Learning for all colleagues is provided throughout the year, both on core competencies and leadership skills, and on business relevant learning. Line Managers monitor the progression of individual learning against agreed personal development plans, supported by the coaching focus of the department’s performance development scheme.

Managing Attendance

Throughout the year the NIO kept a strong focus on the well-being of its staff. The majority of staff were able to fulfil their roles whilst working flexibly and being able to avail themselves of the ongoing hybrid working models. The department supports staff by promoting flexible working, as well as providing mental health and wellbeing information on work-life balance options, on the department’s staff intranet.

Sickness absence figures for the reporting year are included in the Staff Report and show that the average working days lost for the department was 3.1 days. This figure compares to a Civil Service average working days lost figure of 2.6 days as at March 2025.

Pensions

From 1 April 2015 a new pension scheme for civil servants was introduced – the Civil Servants and Others Pension Scheme or alpha, which provides benefits on a career average basis with a normal pension age equal to the member’s state pension age (or 65 if higher). From that date all newly-appointed civil servants, and the majority of those already in service, joined alpha. Prior to that date, civil servants participated in the Principal Civil Service Pension Scheme (PCSPS). The PCSPS has four sections: three providing benefits on a final salary basis (classic, premium and classic plus) with a normal pension age of 60; and one providing benefits on a whole career basis (nuvos) with a normal pension age of 65.

Those organisations within the boundary covered by the Scheme(s) meet the costs of the contributions paid by employers for their staff by the payment of Accrued Superannuation Liability Charges. This is charged to the Statement of Comprehensive Net Expenditure on an accrued basis annually.

The NIO is also required to meet the additional cost of benefits beyond the normal PCSPS (UK) and PCSPS (NI) benefits in respect of staff who retire early. The NIO provides in full for this cost, charged against the Statement of Comprehensive Net Expenditure, when the early retirement has been announced.

The pension benefits of NIO Board members and senior civil servants are outlined in the Remuneration Report.

Health and Safety

The NIO recognises its obligations under Health and Safety at Work legislation for ensuring, so far as is reasonably practicable, the development of an effective health and safety regime. During the period, the department ensured that it continued to remain compliant with all specific recommendations in relation to health and safety, and provide a safe working environment for all.

All staff are required to complete annual mandatory health & safety training, and regular risk assessments of workstations are undertaken to comply with the Health and Safety (Display Screen Equipment) Regulations 1992, ensuring that the right interventions are made to increase the safety and wellbeing of all our colleagues. In addition, the department keeps its health and safety guidance under review and makes policies available to all staff on the department’s intranet. During 2024-25, there were no accidents reported to the relevant authorities (nil in 2023-24).

The NIO, as part of its corporate responsibility agenda, actively promotes awareness of social, community and environmental issues on its staff intranet, and is committed to promoting inclusion, social mobility, and equality through its human resources and other corporate policies. A major contributor to this is the encouragement of volunteering, whether individually or in groups, including providing special leave for this purpose. Information on volunteering is made easily available to staff through the department’s intranet.

The Civil Service has a long tradition of supporting staff to volunteer, and the NIO is committed to making a positive impact on the community in which it operates. The NIO offers up to five days’ special leave for each member of staff to undertake volunteering. Staff can organise their own volunteering activity or can visit www.do-it.org.uk for ideas and information on volunteering.

Fraud/Whistleblowing/Raising a Concern

The NIO has robust arrangements in place for the prevention, detection and reporting of fraud, and is committed to the highest possible standards of openness, honesty, and accountability. Our arrangements follow the principles outlined in the HM Treasury’s publication Managing Public Money, and Civil Service policies on whistleblowing or raising a concern about any suspicions on matters that staff think are wrong, illegal or endangers others, including fraud, bribery or corruption. An annual report on both fraud and whistleblowing activity is presented to the Audit and Risk Assurance Committee.

During the reporting period, the department reviewed its counter fraud policy and kept its nominated whistleblowing officers under review. Updated guidance for staff was published on counter fraud policy and this was supported by a staff discussion. There were no cases of fraud during the year and there were no reported cases of whistleblowing during 2024-25 (one in 2023-24).

Estates Management Strategy

The NIO is a tenant within two UK Government hubs located in Erskine House, Belfast and Government Offices Great George Street (GOGGS), London. The accommodation is maintained under lease arrangements with HM Revenue and Customs (HMRC) and the Government Property Agency (GPA) respectively. Some accommodation, and a small office for Ministers, are also available at Hillsborough Castle, however, responsibility for the management and day-to-day running of Hillsborough Castle rests with the charity, Historic Royal Palaces.

Payment of Suppliers

The NIO paid on average 80% (83% in 2023-24) of invoices within five working days, 89% (89% in 2023-24) within 10 working days, and 94% (96% in 2023-24) within 30 working days, during the reporting period.

Better Regulation

The NIO is committed to producing less, and better, regulation in line with the government’s general principles of regulation. As such, the department continually looks for ways to reduce regulation, where possible. As part of this process, the department is committed to actively promoting the better regulation agenda across the Northern Ireland departments and representing the needs of the devolved administration in Whitehall, and vice versa.

During the reporting period, the NIO published one consultation regarding the use of Non-Jury Trials in Northern Ireland. All NIO consultations are available on the Northern Ireland Office Publications page

Parliamentary Questions

The UK Government has committed to providing departmental Parliamentary Question statistics to the Procedure Committee of the House of Commons on a sessional basis. NIO statistics for 2024-25 are intended for publication on the Committee’s website in due course.

Complaints to the Parliamentary Ombudsman

No complaints were made to the Parliamentary Ombudsman about the department during the reporting period (nil in 2023-2024).

Political and Charitable Donations

The NIO did not make any political or charitable donations in 2024-25 (nil in 2023-24).

Freedom of Information requests

Statistics on Freedom of Information requests in central government, including those for the NIO, are published quarterly at Government FOI Statistics.

Transparency

The NIO, in line with the UK Government’s transparency agenda, regularly publishes information on any significant areas of expenditure, and other items of public interest at the Northern Ireland Office.

1.7 Sustainability Report

Overview

This Sustainability report has been prepared in accordance with 2024-2025 guidelines as set out in The Government Financial Reporting Manual: 2024-25.

The NIO has reported on climate-related financial disclosures consistent with HM Treasury’s TCFD-aligned disclosure application guidance, which interprets and adapts the framework for the UK public sector. Climate is not considered a principle risk for the NIO, however we have undertaken activity to comply with the TCFD phase 2 recommendations and recommended disclosures relating to:

Governance – recommended disclosures (a) and (b)
Risk Management – recommended disclosures (a) to (c)
Metrics and Targets – recommended disclosures (a) to (d)

The NIO intends to provide the recommended disclosure for Strategy, Risk Management and Metrics and Targets in future periods, following the central government implementation timetable.

The NIO is committed to minimising the impact we have on our environment and supporting the wider UK Government’s Net-Zero commitment. Our approach encourages sustainable decision-making and establishes greener ways of working; increases inclusive staff engagement and communication of our ambitions; supports our building owners to meet Government targets and ensures people are making good choices; reduces waste, promotes recycling and sustainable repurposing of equipment, and greener procurement.

Governance

Given the areas the NIO has the ability to control in relation to its climate impact, climate related matters are reviewed on an annual basis by the Board, unless significant risks or opportunities materialise.

The Executive Committee (ExCo) will review climate-related matters at three meetings per annum, as a minimum. One of these instances which will coincide with the departmental budget setting process, to ensure climate matters have been reviewed as part of this process.

Metric and targets

The NIO, has continued to apply Greening Government Commitment (GGC) emissions methodology for metrics, having been out of scope for sustainability reporting before 2023-24.

2024-25 has enabled the NIO to mature it’s collection of GGC data, over 2025-26 the NIO will ensure that the current approach can be sustained to ensure our emission baseline can be accurately calculated.

In 2025-26 the NIO will review the outcome of the Spending Review and, utilising the collection of data over the previous two financial periods, decide where it is possible to set emission targets and aim to implement these for 2026-27.

Recommendations (a) and (c) are subject to a materiality assessment, given climate is not considered a principal risk, we do not see these as material risks to the department.

Risk Management

Climate is not considered a principal risk to the NIO.

Risk identification and management will follow the process used for all risks to the department, whereby if appropriate they are included on the overarching risk register and reviewed through NIO governance mechanisms, as set out in the Corporate Governance Report.

Over the course of 2025-26 the NIO will review that process to ensure it is effective and proportionate to the climate risks the department faces. This will also allow the department to integrate climate-related risks into the NIO’s strategy and planning moving forward.

Greening Government Commitments

The Greening Government Commitments (GGCs) launched on 1 April 2011 requires UK Government to take action to significantly reduce environmental impact. These commitments can be found at Greening Government Commitments 2021 to 2025 - GOV.UK.

The table below sets out the areas on which the NIO has captured information on the Government Greening Commitment:

	2024-25	2023-24
Air Travel (CO2e tonnes)	239	396
Air Miles	765,553	1,031,185
Rail Travel (CO2e tonnes)	0.67	0.50
Rail Miles	13,156	8,807
Taxi Travel (CO2e tonnes)	1.59	2.41
Taxi Miles	6,635	8,978
Car Travel (CO2e tonnes)	1.42	0.63

Hire Car Travel (CO2e tonnes)	4.85	5.11
Car Miles (total)	26,343	25,807
Paper (Reams)	230	200

*These are captured at a department level only.

The NIO is based at 1 Horse Guards Road in London and Erskine House in Belfast. The NIO do not own and are not the sole occupants of either location. The buildings are shared with other UK Government departments and are provided by the Government Property Agency (GPA) as a managed service. It is not possible to identify the individual responsibility of each organisation to the overall sustainability of each building. Shared occupations are not accounted for due to the difficulties of extrapolating reliable sustainability data from service charges. Additionally, the NIO does not report on any emissions for any of our Arms’ Length Bodies, as they fall below the requirements for TCFD and because the NIO does not have the ability to influence the emission which they generate.

Carbon Reduction Commitment

The NIO has put in place a number of measures necessary to adapt to future climate change. Where the NIO draws on services supplied by the Government Property Agency under contract to them, the Office’s contribution to UK Government commitments on environmental impact and sustainability are met within those wider frameworks.

The NIO are committed to reducing their environmental impact by:

Encouraging the use of video conferencing and dial-in facilities rather than travelling to meetings;
Using recycled paper and other stationery;
Using public transport rather than cars when travelling to meetings; and
Ensuring that our printers and photocopiers are all energy efficient models which reduce paper wastage.

Dr Julie Harrison
Accounting Officer
26 November 2025

Question 2

2. Accountability Report

Accepted Answer

2.1 Corporate Governance Report

2.2 Directors Report

NIO Lead Non-Executive Board Members Report

Les Philpott
Lead Non-Executive Board Member and Chair of the NIO Audit and Risk Assurance Committee

Introduction

This is my fifth report as the Northern Ireland Office’s Lead Non-Executive Board member and Chair of the NIO Audit and Risk Assurance Committee (ARAC). My report reflects on the work of the Board and the Committee over the last twelve months. It has been prepared in line with HM Treasury guidance, and is based on the information and assurances that were provided to the Board and the Committee during the year.

2024-25 Overview

Throughout the reporting period, the Board and the ARAC have taken assurance from the wide range of deep dives on key strategic and corporate matters and reports on performance and management of risk. The series of deep dives at each meeting have been particularly helpful in improving the non-executive team’s understanding of the environment in which the department operates and the challenges it faces as well as providing an opportunity for the non-executives to test and scrutinise the robustness of delivery plans and the use of resources.

A key focus of the departmental board’s work during the reporting period has been to support the induction of the new ministerial team and take a visible role in supporting the development of the department’s spending review considerations and preparations of a new business plan for 2025 -2026.

Over the last year, I have seen a marked step change in the quality and comprehensiveness of reports presented to both the Board and the ARAC and improvements in how the department uses data to inform policy proposals and decisions. Further information on the department’s achievements, challenges and risks are outlined in the Performance Report.

Board Membership and Effectiveness

The Board met three times during 2024-25, in October and December 2024 and then again in March 2025. A meeting scheduled for June 2024 was cancelled due to the calling of a general election.

In July 2024, following the appointment of a new Secretary of State for Northern Ireland, it was agreed that he would Chair the departmental Board, with membership reconstituted to include both ministers, the Permanent Secretary, Chief Operating Officer and two Non-Executive Board Members. I was impressed with how quickly the changes bedded in and the speed with which the reformed Board became familiar with the department’s risk landscape and began to provide leadership and direction. The Board also took time to review its Operating Framework to ensure it continued to reflect its role and responsibilities.

Due to changes in the Board membership, a decision was taken to delay the in-year effectiveness review but this will be completed in the next reporting period.

Audit and Risk Assurance Committee (ARAC)

The ARAC met five times during 2023-24, including a technical meeting in December 2024 to discuss and endorse the sign-off of the 2023-24 Annual Report and Accounts, which I am pleased to report received an unqualified opinion and was presented to Parliament in December 2024.

In addition to the Committee’s work to scrutinise the Annual Report and Accounts, throughout the year, the Committee conducted a regular series of deep dives into key functional risk areas and reviewed the work conducted by internal and external auditors. A key focus of the Committee over the last year has been to support the department review its approach to sponsorship arrangements. This included the creation of a new centralised sponsorship team with appropriate skilled resources to support the department and its sponsored entities. Since the creation of this team, I have noticed improved reporting of sponsorship issues that have allowed the ARAC to take a greater level of assurance on the arrangements in place. The ARAC will continue to monitor these arrangements in the next reporting period.

At each meeting, the Committee reviewed the department’s risk register and provided challenges on the department’s approach to managing risks and issues, including its assessment of risk and the robustness of the mitigations put in place. In addition to the register, the Committee was also provided with a risk analysis of each of the sponsored bodies. During the reporting period, an internal audit was conducted on the department’s risk management policy which provided a ‘substantial’ opinion. This was a great achievement and reflects the department’s approach to ensuring that risk is given appropriate consideration at all levels of the organisation.

Throughout the reporting period, the Committee also took assurance from the reports provided from the internal and external audit work. In addition, the Committee took assurance from the bi-annual Stewardship Statements provided by senior officials and sponsored bodies. The Committee acknowledges that the overall internal audit opinion reported a ‘moderate’ level of assurance for 2024-25 and noted the minor recommendations and the management actions that will be taken to implement improvements.

A review of the Committee’s effectiveness was commissioned in January 2025 and responses were reviewed at the April 2025 meeting. In summary, responses indicated that the Committee was operating effectively and feedback demonstrated that the Committee understands its role and has the right balance of skills and experience to discharge its functions appropriately.

Throughout the reporting period, the Permanent Secretary received regular updates from the Chief Operating Officer, who was a regular attendee at ARAC meetings, on the work of the Committee and I regularly engaged with both the Permanent Secretary and Chief Operating Officer to discuss matters of interest. This arrangement was effective and ensured that the Committee continued to be briefed on matters within its remit and I am satisfied that regular senior executive attendance effectively supports discussions relating to management of risk and delivery performance.

In addition to the arrangements in place for engagement with the NIO Permanent Secretary / Accounting Officer and other senior officials, following each ARAC meeting the minutes were circulated to the Board for information and I discussed the work of the Committee, and any reflections from this work, as part of my regular reporting at Board level.

Relationships with Other Audit Committees

The Northern Ireland Office continues to sponsor four executive Non-Departmental Public Bodies (NDPBs):

The Independent Commission for Reconciliation and Information Recovery (ICRIR);
The Northern Ireland Human Rights Commission (NIHRC);
The Parades Commission for Northern Ireland (PCNI); and
The Independent Reporting Commission (IRC).

The ICRIR, NIHRC, and PCNI each operate independent and separate Audit Committees but due to limited budget responsibilities, the NIO ARAC provides oversight for the IRC, which does not operate its own Audit Committee. I am pleased to report that all four NDPBs received unqualified opinions and their annual reports and accounts for 2024-25 were laid in Parliament in-year. Annual reports and accounts for 2024-25 for each body have also been recently laid in Parliament with unqualified opinions.

Each year, I make it a priority to meet with the NDPB Audit Committee Chairs to discuss matters of common interest and these visits took place in September 2024. I have also continued to observe ICRIR Audit Committee meetings.

Acknowledgements

I am grateful to my fellow non-executive team members for their continued dedication and support throughout the reporting period as well as the auditors and officials within the NIO to ensure that effective assurance is provided to the Committee.

Les Philpott

Northern Ireland Office Ministers and Board Members as at 31 March 2025

Ministers

The Rt. Hon. Hilary Benn MP
Secretary of State for Northern Ireland

Fleur Anderson MP
Parliamentary Under Secretary of State

Officials

Dr Julie Harrison
Permanent Secretary

Ruth Sloan
Chief Operating Officer

Non-Executive Board Members

Les Philpott
Lead Non-Executive Board Member

Fiona Ross
Non-Executive Board Member

Further information about our governance is available on the Northern Ireland Website website.

Permanent Secretary

The Permanent Secretary for the NIO in 2024/2025 was Julie Harrison.

Other Reporting Entities

The names of the Chair and Chief Executive, or equivalent, of the Northern Ireland Office’s other reporting entities as at 31 March 2025 were as follows:

Northern Ireland Human Rights Commission

Chief Commissioner: Alyson Kilpatrick

Director/Chief Executive: Dr David Russell

Parades Commission for Northern Ireland

Chief Commissioner: Professor Evelyn Collins CBE

Secretary: Ralph Roche

Independent Reporting Commission

Chief Commissioner: Not Applicable

UK Joint Secretary: Alex Midgley

Independent Commission for Reconciliation and Information Recovery

Chief Commissioner: Sir Declan Morgan

Chief Executive Officer: Louise Warde Hunter

Further information on the performance and governance of each of these entities can be found in their respective Annual Reports & Accounts which are available on their websites.

2.3 Statement of Accounting Officer’s Responsibilities

Under the Government Resources and Accounts Act 2000 (“the GRAA”), HM Treasury has directed the Northern Ireland Office to prepare, for each financial year, consolidated resource accounts. These accounts must detail the resources acquired, held, or disposed of, and the use of resources, during the year by the department and its sponsored non-departmental and other sponsored bodies designated by order made under the GRAA by Statutory Instrument 2024 number 295. The ‘departmental group’ comprises the department and sponsored bodies listed at note 21 to the accounts.

The accounts are prepared on an accruals basis and must give a true and fair view of the state of affairs of the department, and the departmental group, and of the income and expenditure, Statement of Financial Position, Statement of Changes in Taxpayers’ Equity, and cash flows of the departmental group for the financial year.

In preparing the accounts, the Accounting Officer is required to comply with the requirements of the Government Financial Reporting Manual and in particular to:

Observe the Accounts Direction issued by HM Treasury, including the relevant accounting and disclosure requirements, and apply suitable accounting policies on a consistent basis;
Ensure that the department has in place appropriate and reliable systems and procedures to carry out the consolidation process;
Make judgements and estimates on a reasonable basis, including those judgements involved in consolidating the accounting information provided by non-departmental and other sponsored bodies;
State whether applicable accounting standards as set out in the Government Financial Reporting Manual have been followed, and disclose and explain any material departures in the accounts;
Prepare the accounts on a going concern basis; and
Confirm that the Annual Report and Accounts as a whole is fair, balanced and understandable, and take personal responsibility for the Annual Report and Accounts and the judgements required for determining that it is fair, balanced and understandable.

The Principal Accounting Officer and the Board confirms that this Annual Report and Accounts as a whole is fair, balanced, and understandable. The Principal Accounting Officer takes personal responsibility for the Annual Report and Accounts and the judgements required for determining that it is fair, balanced and understandable.

HM Treasury appointed Julie Harrison as Principal Accounting Officer of the NIO with effect from 16 October 2023.

The Principal Accounting Officer of the department has also appointed the Chief Executives or equivalents of its sponsored non-departmental and other bodies as Accounting Officers of those bodies. During the reporting period, David Russell was Accounting Officer for the Northern Ireland Human Rights Commission and Ralph Roche was the Accounting Officer for the Parades Commission for Northern Ireland. There were changes in-year to the Accounting Officer for the Independence Reporting Commission following the departure of Chris Atkinson on 5 November 2024 with Dianne Wilson being appointed as Interim Accounting Officer from 6 November 2024 to 5 January 2025 before Alexander Midgley was appointed as Accounting Officer for the Independent Reporting Commission with effect from 6 January 2025. Additionally, Louise Warde-Hunter was appointed as Accounting Officer for the Independent Commission for Reconciliation and Information with effect from 7 September 2024 following the departure of Tristan Pedelty on 6 September 2024.

The Principal Accounting Officer of the department is responsible for ensuring that appropriate systems and controls are in place to ensure that any grants that the department makes to its sponsored bodies are applied for the purposes intended, and that such expenditure and the other income and expenditure of the sponsored bodies are properly accounted for, for the purposes of consolidation within the resource accounts. Under their terms of appointment, the Accounting Officers of the sponsored bodies are accountable for the use, including the regularity and propriety, of the grants received and the other income and expenditure of the sponsored bodies.

The responsibilities of an Accounting Officer, including responsibility for the propriety and regularity of the public finances for which the Accounting Officer is answerable, for keeping proper records, and for safeguarding the assets of the department or sponsored body, are set out in Managing Public Money, published by HM Treasury.

As the Principal Accounting Officer, I have taken all the steps that I ought to have taken to make myself aware of any relevant audit information and to establish that the NIO’s auditors are aware of that information. As far as I am aware, there is no relevant audit information of which the auditors are unaware.

2.4 Governance Statement

Introduction

The Northern Ireland Office (NIO) governance statement records the stewardship of the organisation, drawing together evidence on governance and risk management, to give a sense of how successfully the department has responded to the challenges and changes faced during the year.

As Principal Accounting Officer, this governance statement represents my assurance to Parliament that I am satisfied that the department’s system of internal control is effective and supports good decision making. This statement is in accordance with HM Treasury guidance. It sets out the governance structures, the internal control and risk management procedures that have operated within the NIO during the financial year 2024-25, and up to the date of approval of the Annual Report and Accounts. The systems in place, as outlined in this statement, are designed to manage risk to a reasonable level rather than to eliminate all risks of failure to achieve policies, aims, and objectives. It can, therefore, only provide reasonable and not absolute assurance of effectiveness.

This statement covers the core department, with the following four sponsored public bodies producing their own governance statements, which are published in their Annual Report and Accounts:

The Northern Ireland Human Rights Commission;
The Parades Commission for Northern Ireland;
The Independent Reporting Commission; and
The Independent Commission for Reconciliation and Information Recovery

My relationship with the Accounting Officers of these bodies is set out in the respective Framework Agreements and designator letters.

Compliance with the Corporate Governance Code

The NIO abides by the principles and spirit of the principles set out in: Corporate Governance in Central Government Departments: Code of Good Practice 2017.

The Code recognises there is not a ‘one size fits all model’ for boards, and the ‘comply or explain’ mechanism enables departments to deviate from the principles and supporting provisions, if justifiable, for good governance of the department. Given that the department is considerably smaller than most central government departments, and has a limited budget and responsibilities by comparison, it would be disproportionate to implement some of the detailed provisions in the Code when good governance can be achieved by other, more proportionate means. I am satisfied that where the department deviates from the Code, that there is a proportionate and justifiable rationale to do so.

Northern Ireland Office Board

The NIO Board forms the collective strategic and operational leadership of the department, bringing together its ministerial and civil service leaders with senior non-executives from outside government. Its purpose is to provide advice, challenge, and assurance on the department’s Outcomes Delivery Plan, to monitor performance, and to advise on significant risks. An independent Audit and Risk Assurance Committee (ARAC) and an Executive Committee (ExCo) support the Board.

During the reporting period the Board met three times and considered a wide range of strategic and corporate issues, as well as scrutinising performance and risk management. The Board was fully engaged in monitoring the use of resources including how the department was responding to deliver the priorities in the Outcome Delivery Plan. Further information on performance during the year is reported in the Performance Analysis section of the report.

The Board took particular assurance from regular deep dives that scrutinised the delivery performance of business areas and sponsored bodies. A particular focus at each Board meeting was the scrutiny of the corporate risk register. The Non-Executive Board Members also played a key role in challenging the comprehensiveness and accuracy of the risk register.

Further information on how the Board operated, assessed its effectiveness in-year, and assessed the quality of the information and support it received, can be found in the Lead Non-Executive Board Member report.

Board Membership and Attendance

The table below sets out attendance for Board meetings attended by members from 1 April 2024 to 31 March 2025:

Membership Type	Name	Position	Date joined / departed Board	Eligible meetings	Absent
Minister	Chris Heaton-Harris	Secretary of State	Departed July 2024	0	0
	Steve Baker	Minister of State	Departed July 2024	0	0
	Lord Caine	Parliamentary Under Secretary of State	Departed July 2024	0	0
	Hilary Benn	Secretary of State	Joined July 2024	3	0
	Fleur Anderson	Parliamentary Under Secretary of State of State	Joined July 2024 / Departed September 2025	3	0
	Matthew Patrick	Parliamentary Under Secretary of State	Joined September 2025	0	0
Senior Officials	Julie Harrison	Permanent Secretary	-	3	0
	Dominic Wilson	Director General	Departed May 2024	0	0
	Will Gelling	Director General	Joined June 2025	0	0
	Caroline Hacker	Chief Operating Officer	Departed April 2024	0	0
	Holly Clark	Chief Operating Officer	Joined May 2024 / Departed October 2024	0	0
	Ruth Sloan	Chief Operating Officer	Joined November 2024	3	1
Non-Executive	Les Philpott	Lead Non-Executive	-	3	0
	Fiona Ross	Non-Executive	-	3	0

Executive Committee

The Executive Committee (ExCo) is the senior leadership of the NIO, chaired by the Permanent Secretary and made up of all the department’s Directors. It operates under delegated authority of the Board, and within the overall strategic context set by ministers, with particular responsibility for delivering on operational priorities, and setting the culture and tone for the department. It makes collective decisions on corporate issues, and actively monitors departmental delivery and performance. ExCo also provides leadership on diversity and inclusion, and the health and wellbeing of departmental staff.

During the year, ExCo focused on operational deliverables and priorities as well as reviewing departmental risks. The Committee also undertook deep dives on a range of issues including Digital Transformation, implementation of the Independent Commission for Reconciliation and Information Recovery; Government Missions and Priorities and the People Survey 2024 Results. Throughout the period, staff and wellbeing and resourcing was also a key consideration for ExCo.

ExCo’s work was supported by Programme Boards, chaired by Directors, which oversee and assess progress against delivery plans, milestones, risks and outcomes and the People Board that provides ExCo with advice on the development of the department’s People Strategy and other staffing matters.

Audit and Risk Assurance Committee

The Audit and Risk Assurance Committee (ARAC) supports the Board and Principal Accounting Officer by providing an independent view of the risk, internal control, and governance arrangements, and assessing the comprehensiveness, reliability, and integrity of those assurances.

The Committee also reviews and makes recommendations to the Principal Accounting Officer on the preparation and sign-off of the annual accounts. In line with the requirements of the Corporate Governance in Central Government Departments: Code of Good Practice 2017 and HM Treasury’s Audit and Risk Assurance handbook the ARAC is chaired by a non-executive board member. The current chair is the Lead Non-Executive Director, Les Philpott.

The table below sets out the attendance of members from 1 April 2024 to 31 March 2025:

Name	Date joined / departed	Eligible meetings
Les Philpott	-	5
Neil Sayers	-	5
Fiona Ross	-	5

During the reporting year, regular reports on the ARAC’s work were provided to the Principal Accounting Officer and the Board. Further information on the membership and work of the ARAC can be found in the Lead Non-Executive Board Members Report.

Register of Interests

The NIO maintains a register of Board and Committee members’ interests, with details of company directorships and other significant interests held by members. The register is a living document and all interests declared by members are considered by the Principal Accounting Officer, who must be satisfied that any potential conflict can be managed. Declarations of any new interests is a standing agenda item for all Board and Committee meetings.

The interests registered by Board members as at 31 March 2025 are set out below:

Name	Position / Interest
Julie Harrison	Close family relative is a Board Member of Derry City Airport
Ruth Sloan	None declared
Holly Clark	None declared
Les Philpott	Non-Executive Board Chair, Government Actuary’s Department Non-Executive Director, Benenden Healthcare Society Ltd
Fiona Ross	Non-Executive Director, Network Rail Chair, National Paediatric Hospital Development Board Non-Executive Director, JK Funds Non-Executive Director, Evelyn Partners Non-Executive Director, SphereInvest Non-Executive Director, The National Treasury Management Agency Non-Executive Director, Ireland XO

The NIO’s processes for registering outside interests and employments apply to all executive and non-executive members of the Board and Committees, and to all Senior Civil Servants working in the department. For those staff below the Senior Civil Service, the declaration and management of interests is in line with MoJ policies and the requirements of the Civil Service Management Code.

In addition to the requirements set out above for the register of interests, and in line with the current Declaration of Interests policy for Special Advisers, all Special Advisers have declared any relevant interests, or confirmed they do not consider they have any relevant interests. The Principal Accounting Officer has considered these returns, and the following relevant interests are set out in public:

Name	Interest
Aoife Forbes (until 30/05/2024)	Ms Forbes held a paid role in the Parliamentary Office of the Rt Hon Chris Heaton-Harris MP. Ms Forbes’ work as a Special Adviser was a part-time contract and her work in the Parliamentary Office of Rt Hon Chris Heaton-Harris MP was performed outside these hours.
Claire Tighe (current)	Ms Tighe is a Local Councillor for North Hanwell Ward, London Borough of Ealing (Elected Representative)

Business Appointment Rules

In compliance with Business Appointment rules, the department is transparent in the advice given to individual applications for senior staff, including Special Advisers, and this information is published at the Northern Ireland Office website.

During 2024-25, the department did not issue any decision on any application submitted under the Business Appointment Rules (nil in 2023-24).

Internal Audit

HM Treasury mandates that internal audit must give a year-end assurance on the effectiveness of a department’s governance, risk, and internal control environment, and this assurance is a source of evidence underpinning the Principal Accounting Officer’s Governance Statement.

Internal audit services are provided to the NIO by the Government’s Internal Audit Agency, who work in accordance with Public Sector Internal Audit Standards. The work of internal auditors includes reviewing information and holding meetings with senior management, to look at the governance, risk, and internal control framework.

The Head of Internal Audit from the Government’s Internal Audit Agency provides an annual assurance to the department’s Principal Accounting Officer, by way of an independent opinion on the adequacy and effectiveness of governance, risk, and internal control arrangements. Their internal audit opinion is informed by the internal audit work carried out throughout the reporting period. Their annual work plan is developed in agreement with senior management, the Principal Accounting Officer and the NIO’s Audit and Risk Assurance Committee and is informed by an analysis of the risks to which the NIO is exposed.

The Internal Audit opinion for 2024-25 included audits of Risk Management, Private Office Ministerial Correspondence, Travel and Expenses and there was a follow up audit on Spend Controls. Each of these audits received a “moderate” rating with the exception of Risk Management that received a ‘substantial’ rating. The Government’s Internal Audit Agency reported no significant control issues and provided a “moderate” level of assurance that the NIO’s overall risk, internal control, and governance framework is adequate to enable the achievement of its objectives, and that the department’s key risks are being effectively managed. A common theme cutting across the internal audits completed within this reporting period, and the previous year, was capacity issues with a number of teams carrying vacancies and this impacted on addressing recommendations promptly. I acknowledge that the department has faced some resource issues and action is being taken to address these as a matter of priority.

Risk Management

During the year, the Board reviewed risks associated with the delivery of its strategic priorities and objectives at each of its meetings. A particular focus for the department, and particularly ExCo over the last twelve months has been to work collaboratively with Programme Boards and risk owners to ensure that operational risks continued to be aligned to business deliverables and reviewed and monitored at the appropriate level. The NIO Board was particularly focused on regularly reviewing risks emerging from proposals to reform the Legacy Act and the work on Spending Review preparations in addition to external risks relating to Northern Ireland fiscal challenges.

At each meeting, the ARAC was presented with a summary of the departmental risk register and undertook deep dives into specific risk areas, including reviewing risks relating to the operation of the Home Protection Scheme, ALB Sponsorship, Cyber Security and the Electoral Management System. The ARAC’s strong challenge function on the management of risk ensured that mitigations and assessment of each risk were thoroughly and independently tested.

The integrated approach ensured that the Programme Boards focused on reviewing and managing lower-level risk captured in relation to each of the four priority outcomes that were identified and escalated to Programme Boards by individual business areas.

During the reporting period, the department established a Risk Review Panel that works closely with Programme Boards and conducts a detailed review of the risk register at six monthly intervals. In addition, following the completion of an internal audit of the department’s approach to risk management, the risk management policy and guidance for staff was refreshed to ensure that roles and responsibilities were clearly set out for all staff.

The department’s Risk Management Policy includes advice on maintaining risk registers, risk escalation, risk mitigation, and communication processes and information and tools for effective risk management is available to all staff on the departmental intranet. The Chief Operating Officer acts as risk champion at Board level to support the department’s approach to managing risk.

In addition to the oversight arrangements outlined above, particularly the assessments from internal auditors and the ARAC on the adequacy and effectiveness of the overall risk management framework, the NIO Board also continues to take assurance from the Annual Risk assurance report provided by the Chief Operating Officer that provides an analysis of the effectiveness of the internal controls to manage operational level risk. Furthermore, the department’s Assurance Map provides a structured way to document the main sources and types of assurance for each of the department’s auditable functions. Taken together, these inform the department’s wider assurance framework and confirm that, overall, risk management practices are compliant with the principles set out in the Orange Book.

Information Assurance

During the year, information assurance and information security updates were provided to the Board, ExCo, and the ARAC. A Security & Information Assurance Committee was also established in January 2024 with a remit to monitor breaches and provide advice and assurance on departmental security and information matters.

Although the department does not handle large quantities of personal data, we maintain robust internal processes and provide training and guidance to all staff on General Data Protection Regulation (GDPR). Our Data Protection Officer also provides advice and support to our sponsored bodies and monitors compliance.

During the year, the Northern Ireland Office reported one data breach to the Information Commissioner’s Office (ICO) (2 in 2023-24). An internal investigation was conducted and remedial action taken to avoid recurrence. Following review, the ICO decided that no regulatory action was required.

Stewardship Statements

Each Deputy Director in the core department, and the senior official in each sponsored body, signs a bi-annual stewardship statement providing assurance to the Principal Accounting Officer on governance, risk management, and the operation of internal controls within their business areas. These stewardship statements clearly set out the internal controls that should be in place, and the steps taken to monitor the effectiveness of those controls.

The statements are normally reviewed in-year, and an assessment of the effectiveness of those controls is also carried out at the end of the reporting year. The Board and the ARAC review a summary report of the effectiveness of the internal control measures at mid-year and the year-end. For 2024-25, no significant concerns were identified following the end of year review.

Transparency Reporting

The NIO publishes monthly data on spend over £25,000, GPC payments over £500 and Workforce Management Information as well as publishing quarterly data on gifts, hospitality, meetings and travel for ministers, senior officials and special advisors alongside data on prompt payment and senior civil servants in post. For 2024-25 the majority of these datasets were published in accordance with the Cabinet Office publication timelines on gov.uk and were published on data.gov.uk. Further information can be found at Transparency and Freedom of Information.

Summary of Effectiveness

For the period 2024-25 and up to the date of the approval of this Annual Report, I am able to report that there were no significant weaknesses in the Northern Ireland Office’s system of internal control of risk management, which affected the achievement of the department’s key policies, aims, and objectives.

Throughout the reporting period, the NIO Board kept its effectiveness, its approach to risk management, and how it operated, under review. I am satisfied with the quality of the information presented to the Board, and that its leadership, performance, and approach to business, provided effective support to ministers and senior officials in directing the business of the department.

In respect of the NIO’s sponsored bodies that are required to publish separate audited accounts, no material issues have been reported to me, and all the department’s sponsored bodies accounts were published at the date of this report.

In addition to the audited accounts for sponsored bodies, the department also has responsibility for electoral policy in Northern Ireland, and for publishing the expenses of the Returning Officer for Northern Ireland. From 2021-2022, it was agreed that these costs would be consolidated and reported on through the Northern Ireland Office group accounts (see Note 22). No Ministerial directions were issued to me in my role as the Principal Accounting Officer for the Northern Ireland Office during the reporting period.

Dr Julie Harrison
Accounting Officer
26 November 2025

2.5 Remuneration and Staff Report

Overview

The remuneration and staff report summarises the department’s policy on remuneration of ministers, executive board members, non-executive board members and staff. It also provides details of actual costs and contractual arrangements. The remuneration and staff report has been prepared in accordance with the requirements of the Financial Reporting Manual 2024-25 as issued by HM Treasury.

Remuneration policy

The remuneration of senior civil servants (SCS) is set by the Prime Minister following independent advice from the Review Body on Senior Salaries. The Review Body on Senior Salaries also advises the Prime Minister from time to time on:

the pay and pensions of MPs and their allowances
peers’ allowances
the pay, pensions and allowances of ministers and others whose pay is determined by the Ministerial and Other Salaries Act 1975 (as amended)

In reaching its recommendations, the Review Body on Senior Salaries has regard to the following considerations:

the need to recruit, retain and motivate suitably able and qualified people to exercise their different responsibilities
regional and local variations in labour markets and their effects on the recruitment and retention of staff
government policies for improving the public services, including the requirement on departments to meet the output targets for the delivery of departmental services
the funds available to departments as set out in the government’s departmental expenditure limits
the government’s inflation target

The Review Body on Senior Salaries takes account of the evidence it receives about wider economic considerations and the affordability of its recommendations. Further information about the work of the Review Body on Senior Salaries can be found at GOV.UK.

Board members and senior civil servants remuneration

The salaries of NIO’s departmental Board members (excluding the ministerial and non-executive members) are determined in line with the Cabinet Office SCS reward policy. Non-consolidated performance-related payments for senior civil servants are determined by the Executive Committee (SCS Pay Band 1 and 2).

Service contracts

The Constitutional Reform and Governance Act 2010 require Civil Service appointments to be made on merit on the basis of fair and open competition. The Recruitment Principles published by the Civil Service Commission specify the circumstances when appointments may be made otherwise.

Unless otherwise stated below, the officials covered by this report hold appointments which are open-ended. Early termination, other than for misconduct, would result in the individual receiving compensation as set out in the Civil Service Compensation Scheme.

Further information about the work of the Civil Service Commission can be found at their website.

Ministers’ salaries and pension entitlements

This section and the related tables have been subject to audit

The salaries, taxable benefits in kind and pension entitlements of ministers are shown in the following tables. Salary figures include all allowances payable by the Office, whereas full-year equivalents are calculated net of allowances, bonuses and ex gratia Payments.

In respect of ministers in the House of Commons, departments bear only the cost of the additional Ministerial remuneration; the salary for their services as an MP £91,346 (from 1 April 2024) and various allowances to which they are entitled are borne centrally. However, the arrangement for ministers in the House of Lords is different in that they do not receive a salary but rather an additional remuneration, which cannot be quantified separately from their Ministerial salaries. This total remuneration, as well as the allowances to which they are entitled, is paid by the department and is therefore shown in full in the figures below.

Benefits in kind

The monetary value of benefits in kind covers any benefits provided by the department and treated by HM Revenue and Customs as a taxable emolument. No minister received benefits in kind in 2024-25 or 2023-24.

Remuneration (salary and payments in kind)

Ministers	Salary (£)		Pension benefits (to nearest £1,000)[^3]		Total (to nearest £1,000)
	2024-25	2023-24	2024-25	2023-24	2024-25	2023-24
The Rt Hon Hilary Benn MP, Secretary of State for Northern Ireland (from 5th July 2024)	49,721 (FYE 67,505)	-	13,000	-	63,000	-
Fleur Anderson MP, Parliamentary Under Secretary of State (from 9th July 2024)[^4]	16,300 (FYE 22,375)	-	4,000	-	20,000	-
The Rt Hon Chris Heaton-Harris MP, Secretary of State for Northern Ireland (from 6th September 2022 to 5th July 2024)[^5]	34,660 (FYE 67,505)	67,505	4,000	18,000	39,000	86,000
The Rt Hon Steve Baker MP, Minister of State for Northern Ireland Office (from 7th September 2022 to 5th July 2024)[^6]	15,636 (FYE 31,680)	31,680	2,000	8,000	18,000	40,000
Lord Caine Parliamentary Under Secretary of State (from 5th November 2021 to 5th July 2024)[^7]	-	-	-	-	-	-

Pension Benefits

Ministers	Accrued pension at age 65 as at 31/3/25	Real increase in pension at age 65	CETV at 31/3/25	CETV at 31/3/24	Real increase in CETV
	£000	£000	£000	£000	£000
The Rt Hon Hilary Benn MP, Secretary of State for Northern Ireland (from 5th July 2024)	15-20	0-2.5	324	317	10
Fleur Anderson MP, Parliamentary Under Secretary of State (from 9th July 2024)	0-5	0.2.5	5	-	3
The Rt Hon Chris Heaton-Harris MP, Secretary of State for Northern Ireland (from 6th September 2022 to 5th July 2024)	5-10	0-2.5	91	86	3
The Rt Hon Steve Baker MP, Minister of State for Northern Ireland Office (from 7th September 2022 to 5th July 2024)	0-5	0-2.5	26	24	1

Ministerial pensions

Pension benefits for ministers are provided by the Parliamentary Contributory Pension Fund (PCPF). The scheme is made under statute and the rules are set out in the Ministers’ etc. Pension Scheme 2015 is available at the Parliamentary Contributory Pension Fund website.

Those ministers who are Members of Parliament may also accrue an MP’s pension under the PCPF (details of which are not included in this report). A new MP’s pension scheme was introduced from May 2015, although members who were aged 55 or older on 1st April 2013 have transitional protection to remain in the previous final salary pension scheme.

Benefits for ministers are payable from State Pension age under the 2015 scheme. Pensions are re-valued annually in line with Pensions Increase legislation both before and after retirement. The contribution rate from May 2015 is 11.1% and the accrual rate is 1.775% of pensionable earnings.

The figure shown for pension value includes the total pension payable to the member under both the pre- and post-2015 Ministerial pension schemes.

The Cash Equivalent Transfer Value (CETV)

This is the actuarially assessed capitalised value of the pension scheme benefits accrued by a member at a particular point in time. The benefits valued are the member’s accrued benefits and any contingent spouse’s pension payable from the scheme. A CETV is a payment made by a pension scheme or arrangement to secure pension benefits in another pension scheme or arrangement when the member leaves a scheme and chooses to transfer the pension benefits they have accrued in their former scheme. The pension figures shown relate to the benefits that the individual has accrued as a consequence of their total Ministerial service, not just their current appointment as a Minister. CETVs are calculated in accordance with The Occupational Pension Schemes (Transfer Values) (Amendment) Regulations 2008 and do not take account of any actual or potential reduction to benefits resulting from Lifetime Allowance Tax which may be due when pension benefits are taken.

The real increase in the value of the CETV

This is the element of the increase in accrued pension funded by the Exchequer. It excludes increases due to inflation and contributions paid by the Minister. It is worked out using common market valuation factors for the start and end of the period.

Senior Management’s salary and pension entitlements

This section and the related tables have been subject to audit

Salary includes gross salary; performance pay or bonuses; overtime; reserved rights to London weighting or London allowances; recruitment and retention allowances; private office allowances and any other allowance to the extent that it is subject to UK taxation. This report is based on accrued payments made by the department and thus recorded in these accounts.

Salary figures include all allowances payable by the department, whereas full year equivalents are calculated net of allowances, bonuses and ex-gratia payments.

Bonuses are based on performance levels attained and are made as part of the appraisal process. Permanent Secretary bonuses are determined by the Permanent Secretary Remuneration Committee within Cabinet Office.

The bonuses reported in 2024-25 relate to performance in 2023-24 and the comparative bonuses reported for 2023-24 relate to performance in 2022-23.

Benefits in Kind

The monetary value of benefits in kind covers any benefits provided by the department and treated by HM Revenue and Customs as a taxable emolument.

Single total figure of remuneration

Senior Managers	Salary (£’000)		Bonus Payments (£’000)		Benefits in kind (to nearest £100)		Pension benefits (to nearest £1,000)[^8]		Total (£’000)
	2024-25	2023-24	2024-25	2023-24	2024-25	2023-24	2024-25	2023-24[^9]	2024-25	2023-24
Permanent Secretary
Dr Julie Harrison	160-165	85-90 (150-155 FYE)	-	-	-	-	68,000	33,000	225-230	115-120
Madeleine Alessandri (to 30 June 2023)	-	45-50 (165-170 FYE)	-	-	-	2,400	-	-	-	45-50
Director General
Dominic Wilson (to 30th April 2024)[^10]	10-15 (140-145 FYE)	135-140	-	-	-	-	13,000	40,000	20-25	175-180

Chris Flatt (to 21st February 2025)	95-100 ( 100-105 FYE)	100-105	0-5	0-5	-	-	64,000	40,000	165-170	145-150
William Gelling	110-115	100-105	10-15	0-5	-	-	74,000	5,000	190-195	110-115
Dr Caroline Hacker	105-110	100-105	0-5	0-5	-	-	42,000	40,000	155-160	145-150
Holly Clark (from 15 January 2024 to 24th October 2024)	60-65 (100-105 FYE)	20-25 (95-100 FYE)	-	-	-	-	48,000	22,000	105-110	40-45
Colin Perry (to 31 May 2023)	-	15-20 (100-105 FYE)	-	10-15	-	-	-	(5,000)[^11]	-	20-25
Ruth Sloan (from 6th November 2024)	35-40 (95-100 FYE)	-	-	-	-	-	14,000	-	50-55	-

Non-Executive Directors

The department has two non-executive directors, details of whom can be found in the Corporate Governance Report. Non-executive director fees are non-pensionable.

Remuneration	Salary (£000)		Benefits in kind (to nearest £100)		Total (£000)
	2024-25	2023-24	2024-25	2023-24	2024-25	2023-24
Les Philpott Lead Non-Executive Director	10-15	10-15	-	-	10-15	10-15
Fiona Ross (From 1 March 2023)	10-15	10-15	-	-	10-15	10-15

Pension Benefits

Senior Managers	Accrued pension at pension age at 31/03/25 and related lump sum	Real increase in pension and related lump sum at pension age	CETV at 31/03/25	CETV at 31/03/24Error! Bookmark not defined.	Real increase in CETV	Employer contribution to partner-ship pension account
	£000	£000	£000	£000	£000	Nearest £100
Permanent Secretary
Dr Julie Harrison (from 6 September 2023)	5-10	2.5-5	94	30	50
Director General
Dominic Wilson (to 30th April 2024)	55-60 plus a lump sum of 145-150	0-2.5 plus a lump sum of 0-2.5	1228	1210	12
Directors
Chris Flatt (to 21st February 2025)	30-35 plus a lump sum 75-80	0-2.5 plus a lump sum of 2.5-5	674	598	47
William Gelling	30-35 plus a lump sum 70-75	2.5-5 plus a lump sum of 2.5-5	612	530	54
Dr Caroline Hacker	10-15	2.5-5	185	138	27
Holly Clark (from 15 January 2024 to 24th October 2024)	30-35	2.5-5	564	519	34
Ruth Sloan (from 6th November 2024)	10-15 plus a lump sum of 25-30	0-2.5 plus a lump sum of 0	250	239	7

Civil Service Pensions

Pension benefits are provided through the Civil Service pension arrangements. Before 1 April 2015, the only scheme was the Principal Civil Service Pension Scheme (PCSPS), which is divided into a few different sections – classic, premium, and classic plus provide benefits on a final salary basis, whilst nuvos provides benefits on a career average basis. From 1 April 2015 a new pension scheme for civil servants was introduced – the Civil Servants and Others Pension Scheme or alpha, which provides benefits on a career average basis. All newly appointed civil servants, and the majority of those already in service, joined the new scheme.

The PCSPS and alpha are unfunded statutory schemes. Employees and employers make contributions (employee contributions range between 4.6% and 8.05%, depending on salary). The balance of the cost of benefits in payment is met by monies voted by Parliament each year. Pensions in payment are increased annually in line with the Pensions Increase legislation. Instead of the defined benefit arrangements, employees may opt for a defined contribution pension with an employer contribution, the partnership pension account.

In alpha, pension builds up at a rate of 2.32% of pensionable earnings each year, and the total amount accrued is adjusted annually in line with a rate set by HM Treasury. Members may opt to give up (commute) pension for a lump sum up to the limits set by the Finance Act 2004. All members who switched to alpha from the PCSPS had their PCSPS benefits ‘banked’, with those with earlier benefits in one of the final salary sections of the PCSPS having those benefits based on their final salary when they leave alpha.

The accrued pensions shown in this report are the pension the member is entitled to receive when they reach normal pension age, or immediately on ceasing to be an active member of the scheme if they are already at or over normal pension age. Normal pension age is 60 for members of classic, premium, and classic plus, 65 for members of nuvos, and the higher of 65 or State Pension Age for members of alpha. The pension figures in this report show pension earned in PCSPS or alpha – as appropriate. Where a member has benefits in both the PCSPS and alpha, the figures show the combined value of their benefits in the two schemes but note that the constituent parts of that pension may be payable from different ages.

When the Government introduced new public service pension schemes in 2015, there were transitional arrangements which treated existing scheme members differently based on their age. Older members of the PCSPS remained in that scheme, rather than moving to alpha. In 2018, the Court of Appeal found that the transitional arrangements in the public service pension schemes unlawfully discriminated against younger members (the “McCloud judgment”).

As a result, steps are being taken to remedy those 2015 reforms, making the pension scheme provisions fair to all members. The public service pensions remedy[^12] is made up of two parts. The first part closed the PCSPS on 31 March 2022, with all active members becoming members of alpha from 1 April 2022. The second part removes the age discrimination for the remedy period, between 1 April 2015 and 31 March 2022, by moving the membership of eligible members during this period back into the PCSPS on 1 October 2023.

The accrued pension benefits, Cash Equivalent Transfer Value and single total figure of remuneration reported for any individual affected by the Public Service Pensions Remedy have been calculated based on their inclusion in the PCSPS for the period between 1 April 2025 and 31 March 2022, following the McCloud judgment. The Public Services Pensions Remedy applied to individuals that were members, or eligible to be members, of a public service pension scheme on 31 March 2012 and were members of the public service pension scheme between 1 April 2025 and 31 March 2022. The basis for the calculation reflects the legal position that impacted members have been rolled back to PCSPS for the remedy period and this will apply unless the member actively exercises their entitlement on retirement to decide instead to received benefits calculated under the terms of the alpha scheme for the period from 1 April 2025 to 31 March 2022.

The partnership pension account is an occupational defined contribution pension arrangement which is part of the Legal & General Mastertrust. The employer makes a basic contribution of between 8% and 14.75% (depending on the age of the member). The employee does not have to contribute but, where they do make contributions, the employer will match these up to a limit of 3% of pensionable salary (in addition to the employer’s basic contribution). Employers also contribute a further 0.5% of pensionable salary to cover the cost of centrally provided risk benefit cover (death in service and ill health retirement).

Further details about the Civil Service pension arrangements can be found at the Civil Service pension scheme website.

Cash Equivalent Transfer Values

A Cash Equivalent Transfer Value (CETV) is the actuarially assessed capitalised value of the pension scheme benefits accrued by a member at a particular point in time. The benefits valued are the member’s accrued benefits and any contingent spouse’s pension payable from the scheme. A CETV is a payment made by a pension scheme or arrangement to secure pension benefits in another pension scheme or arrangement when the member leaves a scheme and chooses to transfer the benefits accrued in their former scheme. The pension figures shown relate to the benefits that the individual has accrued as a consequence of their total membership of the pension scheme, not just their service in a senior capacity to which disclosure applies.

The figures include the value of any pension benefit in another scheme or arrangement which the member has transferred to the Civil Service pension arrangements. They also include any additional pension benefit accrued to the member as a result of their buying additional pension benefits at their own cost. CETVs are worked out in accordance with The Occupational Pension Schemes (Transfer Values) (Amendment) Regulations 2008 and do not take account of any actual or potential reduction to benefits resulting from Lifetime Allowance Tax which may be due when pension benefits are taken.

Real increase in CETV

This reflects the increase in CETV that is funded by the employer. It does not include the increase in accrued pension due to inflation, contributions paid by the employee (including the value of any benefits transferred from another pension scheme or arrangement) and uses common market valuation factors for the start and end of the period.

Fair Pay Disclosures [Audited]

Reporting bodies are required to disclose the relationship between the remuneration of the highest paid director in their organisation and the median remuneration of the organisation’s workforce.

	2024-25	2023-24
Band of Highest Paid Director Total Remuneration	£160,000 - £165,000	£150,000-155,000
Percentage change in performance pay and bonuses for highest paid Director	0%	0%
Median total pay and benefits ratio	3.4	3.3
Median total pay and benefits	£48,407	£45,908
Percentage change in Director total pay and benefits	5.7%[^13]	-13%
Ratio between highest paid director and 25th Percentile	4.1	4.1
25th Percentile total pay and benefits	£39,259	£37,238
Ratio between highest paid director and 75th Percentile	2.7	2.6
75th Percentile total pay and benefits	£61,201	£59,000

Total remuneration includes salary, non-consolidated performance-related pay and benefits-in kind. It does not include severance payments, employer pension contributions and the cash equivalent transfer value of pensions.

The median remuneration of the workforce was £48,407 (2023-24: £45,908). The salary component of the median was £47,657 (2023-24: £45,908). The change in median pay multiple remains the same due to an increase in median remuneration of the workforce resulting from an average 5.5% pay rise received in year and reduction in staff numbers. The lower quartile remuneration (representing the 25th percentile of the linear distribution) was £39,259 (the salary component of this was £39,259) (2023-24: £37,238) and the upper quartile remuneration (representing the 75th percentile of the linear distribution) was £61,201 (the salary component of this was £61,201) (2023-24: £59,000).

In 2024-25, no (2023-24, nil) employee received remuneration in excess of the highest-paid director. Remuneration ranged from £17,353 to £165,000 (2023-24: £22,940 to £155,000).

For employees of the entity taken as a whole, the average percentage changes from the previous financial year of salary and allowances was -2.14% (2023-24: -5%) and the percentage change in performance pay and bonuses payable was -43% (2023-24: -10%).

Compensation for loss of office [Audited]

No compensation for loss of office was paid by the department during the financial year (2023-24: Nil).

Ministers [Audited]

Two ministers left under severance terms and received compensation payments totalling £24,166 (2023-24: Nil).

2.6 Staff Report

Departmental Group Staff costs (Audited)	Total	Permanently employed and inward seconded staff	Others	Ministers	2024-25	2023-24
					£000	£000
					Special Advisors	Total
Wages and salaries	27,220	17,709	9,285	226
Social security costs	2,441	2,117	313	11	-	2,119
Other pension costs	5,412	4,923	489	-	-	4,536
Sub Total	35,073	24,749	10,087	237	-	25,872
Less recoveries in respect of outward secondments	(464)	(464)	-	-	-	(420)

Total net costs	34,609	24,285	10,087	237	-	25,452

Special Advisers are temporary civil servants. In order to improve efficiency, the administration of staff costs for all Special Advisers across government was moved to the Cabinet Office in July 2019, with corresponding budget cover transfers. Therefore, special adviser costs are now reported in the Cabinet Office Annual Report and Accounts. Special Advisers remain employed by the respective departments of their appointing Minister.

Pensions [Audited]

From 1 April 2015 a new pension scheme for civil servants was introduced – the Civil Servants and Others Pension Scheme or alpha, which provides benefits on a career average basis with a normal pension age equal to the member’s state pension age (or 65 if higher). From that date all newly appointed civil servants, and the majority of those already in service, joined alpha. Prior to that date, civil servants participated in the Principal Civil Service Pension Scheme (PCSPS). The PCSPS has four sections: three providing benefits on a final salary basis (classic, premium and classic plus) with a normal pension age of 60; and one providing benefits on a whole career basis (nuvos) with a normal pension age of 65.

These are unfunded multi-employer defined benefit schemes in which the Northern Ireland Office is unable to identify its share of the underlying assets and liabilities.

Full actuarial valuations of both the PCSPS and PCSPS (NI) were carried out as at 31 March 2020. Details of the PCSPS and CSOPS can be found in the resource accounts of the Cabinet Office: Civil Superannuation (www.civilservice.gov.uk/pensions). Details of the PCSPS (NI) are available in the PCSPS (NI) resource accounts.

The Independent Commission for Reconciliation and Information Recovery participates in the Northern Ireland Local Government Officers’ Superannuation Committee (NILGOSC) pension scheme. The pension scheme is known as the Local Government Pension Scheme Northern Ireland and is a funded multi-employer defined benefit scheme. The benefits paid under the Scheme are based on length of membership and final salary. For membership accrued before 1 April 2009, benefits will accrue at a rate of 1/80th of the employee’s final year pensionable pay and an automatic tax-free lump sum of three times their pension. For all membership accrued from 1 April 2009, benefits accrue at a rate of 1/60th of final pensionable pay for each year of service with no automatic lump sum (members can choose to give up some of their 49 pension to provide a lump sum). Additional Voluntary Contributions (AVC) can be made through the NILGOSC in-house AVC provider, Prudential.

The latest full actuarial valuation was 31 March 2022. The outcome of this valuation was used as the basis for the valuation at 31 March 2025 and to set the level of contributions for employers from 1 April 2022 to 31 March 2025.

Further details about the NILGOSC pension scheme can be found in note 18 and at www.nilgosc.org.uk.

For 2024-25, total employers’ contributions of £5,313,483 (2023-24: £4,415,856) were payable at rates in the range 26.6% to 30.3% of pensionable pay for CSOPs, 28.7% to 34.2% per cent of pensionable pay for CSOPS (NI), based on salary bands, and 14.7% of pensionable pay for NILGOSC. The schemes’ actuaries review employer contributions every four years following a full scheme valuation. The contribution rates are set to meet the costs of the benefits accruing during 2024-25 to be paid when the member retires and not the benefits paid during this period to existing pensioners.

Employees can opt to open a partnership pension account, a stakeholder pension with an employer contribution. Employers’ contributions of £12,592 (2023-24: £29,305) were paid to one or more of a panel of three appointed stakeholder pension providers. Employer contributions are age related and ranged from 8% to 14.75% pensionable earnings. Employers also match employee contributions up to 3% of pensionable earnings.

In addition, employer contributions of £384 (2023-24: £594), 0.5% of pensionable earnings, were payable to CSOPS and to the CSOPS (NI) to cover the cost of the future provision of lump sum benefits on death in service and ill health retirement of these employees.

Contributions due to the partnership pension providers at the reporting date were £1,565. Contributions prepaid at that date were £nil.

No person (2023-24: Nil) retired early on ill-health grounds. The total additional accrued pension liabilities in the year amounted to £nil (2023-24: £nil).

Staff Numbers [Audited]

The average number of full-time equivalent persons employed during the year was as follows:

	2024-25 Number	2024-25 Number	2024-25 Number	2024-25 Number	2024-25 Number	2024-25 Number	2023-24 Number
	Total	Permanent Staff	Inward Secondments	Others	Ministers	Special Advisors	Total
NIO Core Department	162	154	3	-	3	2	163
NIO sponsored NDPBs	220	146	8	66	-	-	90
Other NIO sponsored ALBs*	109	37	72	-	-	-	116
Total	491	337	83	66	3	2	369

*These figures include staff employed in the Crown Solicitor’s Office, by the Chief Electoral Officer for Northern Ireland and other sponsored bodies.

Staff Turnover (Unaudited)

Staff turnover during 2024-25 was 4.5% (2023-24, 9.2%) (based on an average employee figure of 154 staff with 7 NIO staff having left the civil service during the year).

Staff Composition

Senior Civil Service by Grade

	2024-25	2023-24
Permanent Secretary Director General	1 -	1 1
Director	4	4
Deputy Director	10	12
Total	15	18

Staff Composition (Gender Analysis)

((Image of pie charts))

Senior Civil Service Staff Composition (Gender Analysis)

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Sickness Absence

Throughout 2024-25, the department has continued to take a robust approach to managing attendance. There are a range of policies and procedures to support line managers to address this key area of their responsibilities. These policies are aimed at ensuring staff are afforded every opportunity of returning to the workplace as soon as possible. Data from the latest 12 month rolling period ending March 2025 shows that the Northern Ireland Office had an average working days lost figure of 2.6 (March 2024: 3.1).

Employment of People with Disabilities and Other Employee Matters

Employment training and advancement of disabled persons and other employee matters are reported on in the Directors’ Report.

Trade Union (Facility Time Publication Requirements) Regulations 2017 (Statutory Instruments 328)

No official in the department spent time on trade union activities (unaudited). The Ministry of Justice as the HR and payroll provider provide trade union representation for staff.

Consultancy Expenditure

The department incurred £510k of consultancy expenditure in 2024-25 primarily relating to the support the implementation of ongoing programmes and communication support (2023-24:£12.2k).

Off-Payroll Arrangements

Highly paid off-pay worker engagements as at 31 March 2025, earning £245 per day or greater. The individuals were not Board members or Senior Officials with significant financial responsibility.

Number (No.) of existing engagements as of March 2025	Core Department	ALBs	Departmental Group

Of which No. that existed:
less than 1 year	1	4	5
for between 1 to 2 years	4	-	4
for between 2 to 3 years	-	-	-
for between 3 to 4 years	-	-	-
for 4 or more years	-	-	-

All highly paid off-payroll workers engaged at any point during the year ended 31 March 2025, earning £245 per day or greater.

	Core Department	ALBs	Departmental Group

No. of temporary off-payroll workers engaged during the year ended 31 March 2025	5	4	9

Of which:
Not subject to off-payroll legislation	-	-	-
Subject to off-payroll legislation and determined as in-scope of IR35	-	-	-
Subject to off-payroll legislation and determined as out-of-scope of IR35x	5	4	9
No. of engagements reassessed for compliance or assurance purposes during the year	-	-	-
Of which: No. of engagements that saw a change to IR35 status following review	-	-	-

Number (No.) of existing engagements as of March 2025	Core Department	ALBs	Departmental Group

No. of off-payroll engagements of board members, and/or, senior officials with significant financial responsibility, during the financial year.	-	-	-
Total no. of individuals on payroll and off-payroll that have been deemed “board members and/or senior officials with significant financial responsibility”, during the financial year. This figure should include both on payroll and off- payroll engagements.	4	13	17

Reporting of Civil Service and other compensation schemes – exit packages [Audited]

There were no civil service compensation schemes exit packages during the current or prior year.

2.7 Parliamentary Accountability and Audit Report

2.8 Statement of Outturn against Parliamentary Supply

In addition to the primary statements prepared under IFRS, the Government Financial Reporting Manual (FReM) requires the Northern Ireland Office to prepare a Statement of Outturn against Parliamentary Supply (SOPS) and supporting notes.

The SOPS and related notes are subject to audit, as detailed in the Certificate and Report of the Comptroller and Auditor General to the House of Commons. The SOPS is a key accountability statement that shows, in detail, how an entity has spent against their Supply Estimate. Supply is the monetary provision (for resource and capital purposes) and cash (drawn primarily from the Consolidated Fund), that Parliament gives statutory authority for entities to utilise.

The Estimate details supply and is voted on by Parliament at the start of the financial year. Should an entity exceed the limits set by their Supply Estimate, called control limits, their accounts will receive a qualified opinion. The format of the SOPS mirrors the Supply Estimates, published on gov.uk, to enable comparability between what Parliament approves and the final outturn. The SOPS contain a summary table, detailing performance against the control limits that Parliament have voted on, cash spent (budgets are compiled on an accruals basis and so outturn won’t exactly tie to cash spent) and administration.

The supporting notes detail the following: Outturn by Estimate line, providing a more detailed breakdown (note 1); a reconciliation of outturn to net operating expenditure in the SOCNE, to tie the SOPS to the financial statements (note 2); a reconciliation of outturn to net cash requirement (note 3).

The SOPS and Estimates are compiled against the budgeting framework, which is similar to, but different to, IFRS. An understanding of the budgeting framework and an explanation of key terms is provided in the financial review section of the Performance Report. Further information on the Public Spending Framework and the reasons why budgeting rules are different to IFRS can also be found in chapter 1 of the Consolidated Budgeting Guidance, available on gov.uk.

The SOPS provides a detailed view of financial performance, in a form that is voted on and recognised by Parliament. The Financial Summary, provides a summarised discussion of outturn against estimate and functions as an introduction to the SOPS disclosures.

Summary of Resource and Capital Outturn 2024-25

Summary table, 2024-25, all Figures presented in £’000’s

				Outturn			Estimate		Outturn vs Estimate, saving/ (excess)	Prior Year Outturn

Type of Spend		Voted	Non-Voted	Total	Voted	Non-Voted	Total	Voted	Total	2023-24

Departmental Expenditure Limit
Resource Capital	1.1 1.2	48,380	6,810	55,190	51,294	6,935	58,229	2,914	3,039	38,192
		12,362	-	12,362	12,611	-	12,611	249	249	2,625
Total		60,742	6,810	67,552	63,905	6,935	70,840	3,163	3,288	40,817

Annually Managed Expenditure
Resource	1.1	3,640	-	3,640	7,201	-	7,201	3,561	3,561	(3,264)
Capital	1.2
		918	-	918	1,595	-	1,595	677	677	-
Total		4,558	-	4,558	8,796	-	8,796	4,238	4,238	(3,264)

Total Budget
Resource	1.1	52,020	6,810	58,830	58,495	6,935	65,430	6,475	6,600	34,928
Capital	1.2	13,280	-	13,280	14,206	-	14,206	926	926	2,625
Total Budget Expenditure		65,300	6,810	72,110	72,701	6,935	79,636	7,401	7,526	37,553


Non-Budget Expenditure
Resource	1.1	23,411,000	-	23,411,000	25,380,596	-	25,380,596	1,969,596	1,969,596	20,913,841

Total Budget and Non Budget		23,476,300	6,810	23,483,110	25,453,297	6,935	25,460,232	1,976,997	1,977,122	20,951,394

Figures in the areas outlined in thick line cover the voted control limits voted by Parliament. Refer to the Supply Estimates guidance manual, available on gov.uk, for detail on the control limits voted by Parliament.

Net Cash Requirement 2024-25

	SoPS Note	Outturn	Estimate	Outturn vs Estimate: saving/(excess)	Prior Year Outturn total, 2023-24
Net Cash Requirement	3	23,564,872	25,551,004	1,986,132	21,239,686

Administration Costs 2024-25

	SoPS Note	Outturn	Estimate	Outturn vs Estimate: saving/(excess)	Prior Year Outturn total, 2023-24
Administration costs	1.1	22,036	23,007	971	21,990

Although not a separate voted limit, any breach of the administration budget will also result in an excess vote. Explanations for variations between estimate and outturn are set out in the financial review section of the Performance Report.

2.9 Notes to the Statement of Outturn against Parliamentary Supply 2024-25

SOPS 1 Outturn detail by Estimate line

SOPS 1.1 Analysis of resource outturn (£000’s)

	Resource Outturn	Resource Outturn	Resource Outturn	Resource Outturn	Resource Outturn	Resource Outturn	Resource Outturn	Estimate	Estimate	Estimate
Type of Spend (Resource)	Administration			Programme			Total
	Gross	Income	Net	Gross	Income	Net		Total	Virements	Total Including Virements	Outturn vs Estimate, saving/ (excess)	Prior Year Outturn Total, 2023-24
Spending in Departmental Expenditure Limits (DEL)
Voted Expenditure:
A - Northern Ireland Office	27,542	(5,506)	22,036	12,016	(373)	11,643	33,679	36,766	(1,026)	35,740	2,061	32,200
B - NIHRC	-	-	-	2,800	-	2,800	2,800	1,832	968	2,800	-	2,703
C – PCNI	-	-	-	829	-	829	829	771	58	829	-	740
D – IRC	-	-	-	341	-	341	341	418	-	418	77	335
E - ICRIR	-	-	-	10,749	(18)	10,731	10,731	11,507	-	11,507	776	2,214
Total voted DEL	27,542	(5,506)	22,036	26,735	(391)	26,344	48,380	51,294	-	51,294	2,914	38,192

Non-voted Expenditure:
F - Funding of elections	-	-	-	6,810	-	6,810	6,810	6,935	-	6,935	125	-

Total non-voted DEL	-	-	-	6,810	-	6,810	6,810	6,935	-	6,935	125	-

Total Spending DEL	27,542	(5,506)	22,036	33,545	(391)	33,154	55,190	58,229	-	58,229	3,039	38,192
Annually Managed Expenditure (AME)
Voted
G - Northern Ireland Office	-	-	-	(604)	-	(604)	(604)	1,001	-	1,001	1,605	(3,264)
H - ICRIR				4,244	-	4,244	4,244	6,200	-	6,200	1,956	-
Total voted AME				3,640	-	3,640	3,640	7,201	-	7,201	3,561	(3,264)

Non-budget
I- Grant Payable to the Northern Ireland Consolidated Fund				23,411,000	-	23,411,000	23,411,000	25,380,596	-	25,380,596	1,969,596	20,899,000
Prior Period Adjustments	-	-	-	-	-	-	-	-	-	-	-	14,457
Total non-budget	-	-	-	23,411,000	-	23,411,000	23,411,000	25,380,596	-	25,380,596	1,969,596	20,913,457

Total Resource	27,542	(5,506)	22,036	23,448,185	(391)	23,447,794	23,469,830	25,446,026	-	25,446,026	1,976,196	20,948,385

SOPS 1.2 Analysis of net capital outturn by Estimate line (£000’s)

	Outturn	Outturn	Outturn	Estimate	Estimate	Estimate	Outturn vs Estimate saving/ (excess)	Prior Year Outturn Total, 2023-24
	Gross	Income	Net	Net	Virements	Net total compared to Estimate, adjusted for virements
Spending in Departmental Expenditure Limits (DEL)
Voted Expenditure:
A - Northern Ireland Office	218	-	218	1,016	(638)	378	160	1,165
B – NIHRC	13	-	13	-	13	13	-	29
C – PCNI	-	-	-	-	-	-	-	92
D – IRC	-	-	-	-	-	-	-	-
E – ICRIR	12,131	-	12,131	11,595	625	12,220	89	1,339
Total Voted DEL	12,362	-	12,362	12,611	-	12,611	249	2,625

Non-voted Expenditure:
F - Funding of elections	-	-	-	-	-	-	-	-
Total non-voted DEL	-	-	-	-	-	-	-	-

Annually Managed Expenditure (AME)
Voted
G – Northern Ireland Office	-	-	-	170	-	170	170	-
H – ICRIR	918	-	918	1,425	-	1,425	507	-
Total voted AME	918	-	918	1,595	-	1,595	677	-

Prior Period Adjustment	-	-	-					384
Total non-budget	-	-	-	-	-	-	-	384

Total spending in DEL	13,280	-	13,280	14,206	-	14,206	926	3,009

The total Estimate columns include virements. Virements are the reallocation of provision in the Estimates that do not require parliamentary authority (because Parliament does not vote to that level of detail and delegates to HM Treasury). Further information on virements is provided in the Supply Estimates Manual, available on gov.uk. The outturn vs estimate column is based on the total including virements. The estimate total before virements have been made is included so that users can tie the estimate back to the Estimates laid before Parliament.

SOPS 2 Reconciliation of outturn to net operating expenditure

	Note	2024-25	2023-24
		£’000	£’000
		Outturn	Outturn


Total resource outturn in Statement of Outturn Parliamentary Supply
Budget	1.1	58,830	34,928
Non-budget	1.1	23,411,000	20,913,457
		23,469,830	20,948,385
Income payable to the Consolidated Fund		(212)	-
Prior Period Adjustment	1.1	-	(14,457)
Net expenditure in Consolidated Statement of Comprehensive Net Expenditure		23,469,618	20,933,928

As noted in the introduction to the SOPS above, outturn and the Estimates are compiled against the budgeting framework, which is similar to, but different from, IFRS. Therefore, this reconciliation bridges the resource outturn to net operating expenditure, linking the SOPS to the financial statements.

SOPS 3 Reconciliation of Net Resource Outturn to Net Cash Requirement

As noted in the introduction to the SOPS above, outturn and the Estimates are compiled against the budgeting framework, not on a cash basis. Therefore, this reconciliation bridges the resource and capital outturn to the net cash requirement.

	Note	Estimate	Outturn	2024-25 Net total outturn Compared with Estimate: saving/(excess)
		£000	£000	£000
Resource Outturn	SOPS 1.1	25,446,026	23,469,830	1,976,196

Capital Outturn	SOPS 1.2	14,206	13,280	926
Adjustments for ALBs:
Remove voted resource and capital		(33,748)	(32,007)	(1,741)
Add Cash grant-in-aid		32,577	18,218	14,359

Accruals to cash adjustments:

Adjustment to remove non-cash items:
Depreciation/Amortisation	4	(4,400)	(2,727)	(1,673)
New Provisions and adjustments to previous provisions	15	(1,171)	(286)	(885)
Other non-cash items			(1,258)	1,258


Adjustments to reflect movements in working balances:
Increase/(decrease) in receivables	13		2,718	(2,718)
(Increase)/decrease in payables			102,448	(102,448)
Lease payments	9		810	(810)
Use of provisions	15	104,449	766	103,683
		25,557,939	23,571,792	1,986,147
Removal of non-voted budget items:
Consolidated Fund		(6,935)	(6,810)	(125)
Consolidated Fund Standing Services			(110)	110
Net cash requirement		25,551,004	23,564,872	1,986,132

SOPS 4.1 Analysis of income payable to the Consolidated Fund

In addition to income retained by the department, the following income is payable to the Consolidated Fund (cash receipts being shown in italics).

	Reference	2024-25 Outturn total £000		2023-24 Outturn total £000 (Restated)
		Accruals	Cash	Accruals	Cash
Income outside the ambit of the Estimate		212	212	-	-
[Excess] cash surrenderable to the Consolidated Fund		-	-	-	-
Total amount payable to the Consolidated Fund		212	212	-	-

SOPS 4.2 Consolidated Fund Income

Consolidated Fund income shown in note 4.1 above does not include any amounts collected by the department where it was acting as agent for the Consolidated Fund rather than as principal. The amounts collected as agent for the Consolidated Fund (which are otherwise excluded from the group financial statements) were:

	2024-25 Outturn total	2023-24 Outturn total
	£000	£000 (Restated)

Taxes and licence fees	-	-
Fines and penalties	-	-
Other income	129	111

Less:
Costs of collection – where deductible	-	-
Uncollectible costs	-	-

Amounts Payable to the Consolidated Fund	129	111

Balance held at the start of the year	151	40
Payments into the Consolidated Fund	(152)	-
Balance held on trust at the end of the year	128	151

Parliamentary Accountability Disclosures [Audited]

Losses and Special Payments

The department incurred a loss, that in aggregate was in excess of £300,000, which requires separate disclosure during the year to 31 March 2025 (2023-24: nil). The department recognised an impairment loss of £1.046m. The loss relates to the implementation of a management system, which was deemed as holding no value in use in its current state, as prescribed under IAS 36 “Impairment of Assets”. Permission from HMT Treasury, in line with Managing Public Money guidance, was sought and granted 7th May 2025 to complete the impairment.

All other expenditure has been incurred in line with underlying Parliamentary authority.

Government functional standards [Unaudited]

The department follows the government functions standards and further details are provided within the Performance Analysis section.

Fees and Charges

An analysis of income from services provided to external and public sector customers is as follows:

			2024-25			2023-24
			£000			£000

		Full	Surplus/		Full	Surplus/
	Income	Cost	(deficit)	Income	Cost	(deficit)

Crown Solicitor’s Office	5,437	(5,521)	(84)	5,688	(5,636)	52

Total	5,437	(5,521)	(84)	5,688	(5,636)	52

In accordance with Managing Public Money, the department is required to disclose results for the areas of its activities where fees and charges are made. The foregoing analysis is not intended to meet the requirements of IFRS 8 Segmental Reporting. The Northern Ireland Office has complied with the cost allocation and charging requirements set out in HM Treasury and Office of Public Sector information guidance.

The Crown Solicitor’s Office (CSO) generates income for legal work undertaken for all clients. The financial objective is to recover all costs associated with delivering these services. A schedule of fees is determined at the beginning of each financial year based on estimated costs and forecast activity levels.

Remote Contingent Liabilities

In addition to contingent liabilities disclosed in the financial statements, the department also reports liabilities for which the likelihood of a transfer of economic benefit in settlement is remote but are still in scope of IAS 37. There were no remote contingent liabilities in 2024-25 (2023-24: nil).

Notation of Gifts

There were no gifts made over the limits prescribed in Managing Public Money or Managing Public Money Northern Ireland in 2024-25 (2023-24: nil).

Public Sector Bodies outside the Departmental Boundary

There were no public sector bodies outside the boundary of the department where the NIO had lead policy responsibility in the year 2024-25 (2023-24: nil).

Dr Julie Harrison
Accounting Officer
26 November 2025

2.10 The Certificate of the Comptroller and Auditor General to the House of Commons

Opinion on financial statements

I certify that I have audited the financial statements of the Northern Ireland Office and of its Departmental Group for the year ended 31 March 2025 under the Government Resources and Accounts Act 2000. The Department comprises the core Department. The Departmental Group consists of the Department and the bodies designated for inclusion under the Government Resources and Accounts Act 2000 (Estimates and Accounts) Order 2024.

The financial statements comprise the Department’s and the Departmental Group’s:

Statement of Financial Position as at 31 March 2025;
Statement of Comprehensive Net Expenditure, Statement of Cash Flows and Statement of Changes in Taxpayers’ Equity for the year then ended; and
the related notes including the significant accounting policies.

The financial reporting framework that has been applied in the preparation of the Group financial statements is applicable law and UK adopted international accounting standards.

In my opinion, the financial statements:

give a true and fair view of the state of the Department and the Departmental Group’s affairs as at 31 March 2025 and its net expenditure for the year then ended; and
have been properly prepared in accordance with the Government Resources and Accounts Act 2000 and HM Treasury directions issued thereunder.

Opinion on regularity

In my opinion, in all material respects:

the Statement of Outturn against Parliamentary Supply properly presents the outturn against voted Parliamentary control totals for the year ended 31 March 2025 and shows that those totals have not been exceeded; and
the income and expenditure recorded in the financial statements have been applied to the purposes intended by Parliament and the financial transactions recorded in the financial statements conform to the authorities which govern them.

Basis for opinions

I conducted my audit in accordance with International Standards on Auditing (UK) (ISAs UK), applicable law and Practice Note 10 Audit of Financial Statements and Regularity of Public Sector Bodies in the United Kingdom (2022). My responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of my certificate.

Those standards require me and my staff to comply with the Financial Reporting Council’s Revised Ethical Standard 2019. I am independent of the Department and its Group in accordance with the ethical requirements that are relevant to my audit of the financial statements in the UK. My staff and I have fulfilled our other ethical responsibilities in accordance with these requirements.

I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.

Conclusions relating to going concern

In auditing the financial statements, I have concluded that the Department and its Group’s use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work I have performed, I have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Department or its Group’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

My responsibilities and the responsibilities of the Accounting Officer with respect to going concern are described in the relevant sections of this certificate.

The going concern basis of accounting for the Department and its Group is adopted in consideration of the requirements set out in HM Treasury’s Government Financial Reporting Manual, which requires entities to adopt the going concern basis of accounting in the preparation of the financial statements where it is anticipated that the services which they provide will continue into the future.

Other information

The other information comprises information included in the Annual Report, but does not include the financial statements and my auditor’s certificate thereon. The Accounting Officer is responsible for the other information.

My opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in my certificate, I do not express any form of assurance conclusion thereon.

My responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or my knowledge obtained in the audit, or otherwise appears to be materially misstated.

If I identify such material inconsistencies or apparent material misstatements, I am required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work I have performed, I conclude that there is a material misstatement of this other information, I am required to report that fact.

I have nothing to report in this regard.

Opinion on other matters

In my opinion the part of the Remuneration and Staff Report to be audited has been properly prepared in accordance with HM Treasury directions issued under the Government Resources and Accounts Act 2000.

In my opinion, based on the work undertaken in the course of the audit:

the parts of the Accountability Report subject to audit have been properly prepared in accordance with HM Treasury directions issued under the Government Resources and Accounts Act 2000;
the information given in the Performance and Accountability Reports for the financial year for which the financial statements are prepared is consistent with the financial statements and is in accordance with the applicable legal requirements.

Matters on which I report by exception

In the light of the knowledge and understanding of the Department and its Group and its environment obtained in the course of the audit, I have not identified material misstatements in the Performance and Accountability Reports.

I have nothing to report in respect of the following matters which I report to you if, in my opinion:

adequate accounting records have not been kept by the Department and its Group or returns adequate for my audit have not been received from branches not visited by my staff; or
I have not received all of the information and explanations I require for my audit; or
the financial statements and the parts of the Accountability Report subject to audit are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by HM Treasury’s Government Financial Reporting Manual have not been made or parts of the Remuneration and Staff Report to be audited is not in agreement with the accounting records and returns; or
the Governance Statement does not reflect compliance with HM Treasury’s guidance.

Responsibilities of the Accounting Officer for the financial statements

As explained more fully in the Statement of Accounting Officer’s Responsibilities, the Accounting Officer is responsible for: * maintaining proper accounting records;
* providing the C&AG with access to all information of which management is aware that is relevant to the preparation of the financial statements such as records, documentation and other matters; * providing the C&AG with additional information and explanations needed for his audit; * providing the C&AG with unrestricted access to persons within the Department and its Group from whom the auditor determines it necessary to obtain audit evidence; * ensuring such internal controls are in place as deemed necessary to enable the preparation of financial statements to be free from material misstatement, whether due to fraud or error; * preparing financial statements which give a true and fair view, in accordance with HM Treasury directions issued under the Government Resources and Accounts Act 2000; * preparing the annual report, which includes the Remuneration and Staff Report, in accordance with HM Treasury directions issued under the Government Resources and Accounts Act 2000; and * assessing the Department and its Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Accounting Officer anticipates that the services provided by the Department and its Group will not continue to be provided in the future.

Auditor’s responsibilities for the audit of the financial statements

My responsibility is to audit, certify and report on the financial statements in accordance with the Government Resources and Accounts Act 2000.

My objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a certificate that includes my opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Extent to which the audit was considered capable of detecting non-compliance with laws and regulations, including fraud

I design procedures in line with my responsibilities, outlined above, to detect material misstatements in respect of non-compliance with laws and regulations, including fraud. The extent to which my procedures are capable of detecting non-compliance with laws and regulations, including fraud is detailed below.

In identifying and assessing risks of material misstatement in respect of non-compliance with laws and regulations, including fraud, I:

considered the nature of the sector, control environment and operational performance including the design of the Department and its Group’s accounting policies, key performance indicators and performance incentives.
inquired of management, the Department’s head of internal audit and those charged with governance, including obtaining and reviewing supporting documentation relating to the Department and its Group’s policies and procedures on:
- identifying, evaluating and complying with laws and regulations;
- detecting and responding to the risks of fraud; and
- the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations including the Department and its Group’s controls relating to the Department’s compliance with the Government Resources and Accounts Act 2000, Managing Public Money, the Northern Ireland (Loans) Act 1975 and Supply and Appropriation (Mains Estimates) Act 2024;
inquired of management, the Department’s head of internal audit and those charged with governance whether:
- they were aware of any instances of non-compliance with laws and regulations;
- they had knowledge of any actual, suspected, or alleged fraud,
- discussed with the engagement team and the relevant internal specialists, including pensions regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.

As a result of these procedures, I considered the opportunities and incentives that may exist within the Department and its Group for fraud and identified the greatest potential for fraud in the following areas: revenue recognition, posting of unusual journals, complex transactions and bias in management estimates. In common with all audits under ISAs (UK), I am required to perform specific procedures to respond to the risk of management override.

I obtained an understanding of the Department and Group’s framework of authority and other legal and regulatory frameworks in which the Department and Group operate. I focused on those laws and regulations that had a direct effect on material amounts and disclosures in the financial statements or that had a fundamental effect on the operations of the Department and its Group. The key laws and regulations I considered in this context included Government Resources and Accounts Act 2000, Managing Public Money, Supply and Appropriation (Main Estimates) Act 2024, Northern Ireland (Loans) Act 1975, employment law, pensions legislation and tax legislation.

Audit response to identified risk

To respond to the identified risks resulting from the above procedures: * I reviewed the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described above as having direct effect on the financial statements; * I enquired of management, the Audit and Risk Committee and in-house legal counsel concerning actual and potential litigation and claims; * I reviewed minutes of meetings of those charged with governance and the Board; and internal audit reports; and * I addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and other adjustments; assessing whether the judgements on estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business; and * I addressed the risk of fraud on revenue recognition through agreeing specific revenue transactions to supporting invoices and the receipt of payment in bank statements as well as performing sample testing on work in progress at year end to verify the accrued income balance. I also tested certain revenue journals.

I communicated relevant identified laws and regulations and potential risks of fraud to all engagement team members including internal specialists and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

A further description of my responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of my certificate.

Other auditor’s responsibilities

I am required to obtain appropriate evidence sufficient to give reasonable assurance that the Statement of Outturn against Parliamentary Supply properly presents the outturn against voted Parliamentary control totals and that those totals have not been exceeded. The voted Parliamentary control totals are Departmental Expenditure Limits (Resource and Capital), Annually Managed Expenditure (Resource and Capital), Non-Budget (Resource) and Net Cash Requirement.

I am required to obtain sufficient appropriate audit evidence to give reasonable assurance that the expenditure and income recorded in the financial statements have been applied to the purposes intended by Parliament and the financial transactions recorded in the financial statements conform to the authorities which govern them.

I communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control I identify during my audit.

Report

I have no observations to make on these financial statements.

Gareth Davies Comptroller and Auditor General Date 27 November 2025

National Audit Office
157-197 Buckingham Palace Road
Victoria
London
SW1W 9SP

Question 3

3. Financial Statements

Accepted Answer

3.1 Consolidated Statement of Comprehensive Net Expenditure for the Year Ended 31 March 2025

This account summarises the expenditure and income generated and consumed on an accruals basis. It also includes other comprehensive income and expenditure, which include changes to the values of non-current assets and other financial instruments that cannot yet be recognised as income or expenditure.

	Note	2024-25 £000	2024-25 £000	2023-24 £000	2023-24 £000
		Core Department	Departmental Group	Core Department	Departmental Group


Income	5	(71,389)	(71,406)	(136,101)	(136,101)


Total operating income		(71,389)	(71,406)	(136,101)	(136,101)


Staff costs	3	22,704	34,609	21,357	25,452

Other expenditure	4	23,499,307	23,506,310	21,042,646	21,044,535

Grant in aid to NDPBs		18,218	-	5,565	-


Total operating expenditure		23,540,229	23,540,919	21,069,568	21,069,987



Net operating expenditure for the year ended 31 March 2025		23,468,840	23,469,513	20,933,467	20,933,886


Finance expense		50	105	34	42

Net expenditure for the year ended 31 March 2025		23,468,890	23,469,618	20,933,501	20,933,928

Other comprehensive net expenditure

Items that will not be reclassified to net operating expenditure:
Actuarial gain on pension scheme liabilities		-	(235)	-	-
Return on revaluation of pension scheme assets		-	1	-	-
Restriction of pension scheme surplus		-	234	-	-
Revaluation of property, plant and equipment	6	(1,965)	(1,970)	(2,206)	(2,221)


Comprehensive net expenditure for the year ended 31 March 2025		23,466,925	23,467,648	20,931,295	20,931,707

The above income and expenditure is derived from continuing operations.

The Notes to the Departmental Accounts form part of these accounts.

3.2 Consolidated Statement of Financial Position as at 31 March 2025

This statement presents the financial position of the departmental group. It comprises three main components: assets owned or controlled; liabilities owed to other bodies; and equity, the remaining value of the entity.

	Note		31 March 2025		31 March 2024
		£000	£000	£000	£000
		Core Department	Departmental Group	Core Department	Departmental Group
Non-current assets
Property, plant and equipment	6	85,997	90,935	86,920	87,693
Right of use assets	7	1,158	10,407	1,781	3,296
Intangible assets	8	121	121	168	168
Financial assets	11	1,619,542	1,619,542	1,526,552	1,526,552
Total non-current assets		1,706,818	1,721,005	1,615,421	1,617,709

Current assets
Trade and other receivables	13	7,588	5,637	4,870	5,231
Financial assets	11	124,457	124,457	122,524	122,524
Cash and cash equivalents	12	180,970	181,897	196,633	197,641
Total current assets		313,015	311,991	324,027	325,396

Total assets		2,019,833	2,032,996	1,939,448	1,943,105

Current Liabilities
Trade and other payables	14	395,081	398,981	428,052	429,952
Lease liabilities	9/14	850	4,967	820	975
Provisions	15	1,556	1,556	1,254	1,254
Total current liabilities		397,487	405,504	430,126	432,181

Non-current assets plus/less net current assets/liabilities		1,622,346	1,627,492	1,509,322	1,510,924

Non-current liabilities
Other payables	14	1,702,319	1,702,319	1,692,712	1,692,712
Lease liabilities	9/14	287	4,973	1,004	2,350
Retirement Benefit Obligation	18	-	-	-	-
Provisions	15	4,574	5,567	5,356	5,431
Total non-current liabilities		1,707,180	1,712,859	1,699,072	1,700,493

Net liabilities		(84,834)	(85,367)	(189,750)	(189,569)

Taxpayers’ deficit/equity
General fund		(132,987)	(133,610)	(237,000)	(236,904)
Revaluation reserve		48,153	48,243	47,250	47,335
Total deficit		(84,834)	(85,367)	(189,750)	(189,569)

Dr Julie Harrison
Accounting Officer
26 November 2025

The Notes to the Departmental Accounts form part of these accounts.

3.3 Consolidated Statement of Cash Flows for the Year Ended 31 March 2025

The Statement of Cash Flows shows the changes in cash and cash equivalents of the departmental group during the reporting period. The statement shows how the department generates and uses cash and cash equivalents by classifying cash flows as operating, investing and financing activities. The amount of net cash flows arising from operating activities is a key indicator of service costs and the extent to which these operations are funded by way of income from the recipients of services provided by the department. Investing activities represent the extent to which cash inflows and outflows have been made for resources which are intended to contribute to the departments’ future public service delivery.

	Note	2024-25 £000	2024-25 £000	2023-24 £000	2023-24 £000
		Core Department	Departmental Group	Core Department	Departmental Group

Cash flows from operating activities
Net expenditure		(23,468,890)	(23,469,618)	(20,933,501)	(20,933,928)
Adjustment for non-cash transactions	4/15	4,259	5,427	5,805	6,017
(Increase) in trade and other receivables	13	(2,718)	(406)	(1,478)	(1,767)
(Decrease) in trade payables	14	(116,931)	(107,743)	(454,729)	(452,671)
Less: movements in payables relating to items not passing through the Statement of Comprehensive Net Expenditure	14	14,599	7,521	148,632	147,662
Use of provisions	15	(766)	(766)	(768)	(768)

Net cash (outflow) from operating activities		(23,570,447)	(23,565,585)	(21,236,039)	(21,235,455)

Cash flows from investing activities
Purchase of property, plant and equipment	6	(105)	(4,932)	(1,760)	(1,800)
Purchase of intangible assets	8	(27)	(27)	(103)	(103)
Loans to other bodies	11	(220,000)	(220,000)	(150,000)	(150,000)
Repayment from other bodies – capital	11	125,077	125,077	129,441	129,441
Repayment from other bodies – interest	5	55,157	55,157	51,120	51,120
Net cash (outflow)/inflow from investing activities		(39,898)	(44,725)	28,698	28,658

Cash flows from financing activities
From the Consolidated Fund (Supply) – current year		23,549,048	23,549,048	21,241,938	21,241,938
From the Consolidated Fund (non-supply)		6,810	6,810	-	-
Loans received from the National Loans Fund	11	220,000	220,000	150,000	150,000
Repayments of loans from the National Loans Fund – Capital	11	(125,077)	(125,077)	(129,441)	(129,441)
Repayments of loans from the National Loans Fund – Interest	4	(55,157)	(55,157)	(51,120)	(51,120)
Payment of lease liabilities	9	(810)	(993)	(1,667)	(1,785)
Finance charge	9	50	105	34	42
Finance income on pension asset	18	-	18	-	-
Finance expense on pension obligation	18	-	(6)	-	-
Net cash inflow from financing activities		23,594,864	23,594,748	21,209,744	21,209,634
Net (decrease)/increase in cash and cash equivalents in the period before adjustment for receipts and payments to the Consolidated Fund
		(15,481)	(15,562)	2,403	2,837
Payments of amounts due to the Consolidated Fund		(182)	(182)	-	-
Net (decrease)/increase in cash and cash equivalents in the period after adjustment for receipts and payments to the Consolidated Fund
		(15,663)	(15,744)	2,403	2,837
Cash and cash equivalents at the beginning of the period	12	196,633	197,641	194,230	194,804
Cash and cash equivalents at the end of the period	12	180,970	181,897	196,633	197,641

3.4 Statement of Changes in Taxpayers Equity for the Year Ended 31 March 2025 (Core Department)

This statement shows the movement in the year on the different reserves held by the department analysed into ‘general fund reserves’ (i.e. those reserves that reflect a contribution from the Consolidated Fund). The Revaluation Reserve reflects the change in asset values that have not been recognised as income or expenditure. The General Fund represents the total assets less liabilities of a department, to the extent that the total is not represented by other reserves and financing items.

	Note	General Fund	Revaluation Reserve	Taxpayers’ Equity
		£000	£000	£000

Balance at 31 March 2023		(544,400)	46,074	(498,326)

Net Parliamentary Funding - drawn down		21,241,938	-	21,241,938
Net Parliamentary Funding – deemed		194,230	-	194,230
Consolidated Fund Standing Services	4	120	-	120
Unspent Supply payable to the Consolidated Fund	14	(196,482)	-	(196,482)
Excess receipts due to the Consolidated Fund	14	(151)	-	(151)
		21,239

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Applies to Northern Ireland

1. Performance Report

1.1 Foreword from the Secretary of State for Northern Ireland

1.2 Permanent Secretary’s Perspective on Performance

1.3 Performance Overview

Our Purpose

Vision and Mission

Northern Ireland Office Structure

Senior management Team

Sponsored Bodies

NIO Sponsored Bodies

Priority Outcomes

Performance Overview (Continued)

1.4 Financial Summary

Spending summary highlights for 2024-25

Funding

Departmental Expenditure Limit (DEL)

Annually Managed Expenditure (AME)

Non-Budget Expenditure

Comparison of Estimate and Outturn

Resource

Capital

Net Cash Requirement

Statement of Financial Position

External Auditor

Long Term Expenditure Trends

NIO Annual DEL Expenditure (Resource and Capital) 2015-2025

1.5 Performance Analysis

Priority Outcome 1: Economic Growth

Priority Outcome 2: Safety

Priority Outcome 3: Governance

Priority Outcome 4: Society

Strategic Enablers

1.6 Corporate Performance

Recruitment Practice

Public Appointments

Employee Consultation

Staff Engagement

Diversity and Inclusion

Employment, Training and Advancement of Disabled Persons

Learning and Development

Managing Attendance

Pensions

Health and Safety

Social, Community and Environmental Responsibility

Fraud/Whistleblowing/Raising a Concern

Estates Management Strategy

Payment of Suppliers

Better Regulation

Parliamentary Questions

Complaints to the Parliamentary Ombudsman

Political and Charitable Donations

Freedom of Information requests

Transparency

1.7 Sustainability Report

Overview

Governance

Metric and targets

Risk Management

Greening Government Commitments

Carbon Reduction Commitment

2. Accountability Report

2.1 Corporate Governance Report

2.2 Directors Report

NIO Lead Non-Executive Board Members Report

Introduction

2024-25 Overview

Board Membership and Effectiveness

Audit and Risk Assurance Committee (ARAC)

Relationships with Other Audit Committees

Acknowledgements

Northern Ireland Office Ministers and Board Members as at 31 March 2025

Ministers

Officials

Non-Executive Board Members

Permanent Secretary

Other Reporting Entities

Northern Ireland Human Rights Commission

Parades Commission for Northern Ireland