Northern Ireland risks falling back under direct rule from the UK government unless it implements welfare reforms and balances its budget, Northern Ireland Secretary Theresa Villiers has said.
Speaking at the Conservative Party conference in Manchester, Ms Villiers said direct rule would be a "severe setback" and that the government was doing everything it could to prevent it.
However, she warned parties in the province that are taking a "hard line" against welfare reform that they could end up collapsing the devolved Stormont government.
She insisted political talks need to find a way to agree a budget as well as end the terrorist threat from dissident republicans.
Ms Villiers told the conference: "Unlike last year, we simply don't have the luxury of endless long hours of discussions stretching on and on and on until Christmas.
"What's at stake is not just the credibility of devolved government in Northern Ireland but the survival of devolved government in Northern Ireland.
"One only has to look round Europe to see the problems caused when an administration cannot live within its budget and the terribly harsh impact that can have on some of the most vulnerable in society.
Ms Villiers said: "Replaying that scenario in Northern Ireland would stretch political relationships well beyond breaking point.
"And there's now a real risk that those taking a hard line against welfare reform could end up running the devolved institutions into collapse as collateral damage."
She added: "A return to direct rule would be a severe setback after everything that's been achieved over recent years and we are doing all we can to prevent it."
Ms Villiers also attacked the new Labour leadership, suggesting leader Jeremy Corbyn and shadow chancellor John McDonnell may have sympathised with the IRA.
She said: "I have to say that many will view with grave concern the fact that, as recently as August, the leader the Labour Party have just elected was asked five times in an interview to condemn IRA terrorism and five times failed to do so.
"And while the shadow chancellor might have issued a carefully worded apology for the hurt caused by his comments on the IRA, I say it's time he retracted in full his call to honour IRA terrorists and admit that he was entirely wrong ever to have made that statement in the first place."
A new complication for Northern Ireland emerged today.
Details are emerging of proposed British government legislation on how to deal with the legacy of the past.
Sinn Féin's Gerry Kelly has called them unacceptable, claiming they would hide the British government's role in The Troubles.
Towards the end of next week, a requested report on paramilitary activities may be published.
Unionists are also monitoring political developments in Dublin.
There is a sense that if Taoiseach Enda Kenny were to call an early General Election, Sinn Féin's energies and focus might turn southwards and big decisions at Stormont could be put on hold.
Payments to DUP ministers to stop amid Stormont crisis
The DUP has said payments to ministers are to stop following criticism over Stormont power-sharing arrangements.
Ministers are in office for one day a week as part of the introduction of an in-out policy while political talks continue.
A party statement said: "As we have previously outlined, DUP ministers will not be benefiting financially during the period of the resignations. We indicated that we take our posts to ensure the posts do not get reallocated to the SDLP or Sinn Féin.
"The party leader indicated on the day of the initial resignations that DUP ministers would not be keeping ministerial salary money.
"As the money is paid under legislation by the Assembly we have had discussions with the Assembly finance authorities about not only stopping future payments but also the repayment of any payments previously made.
"As a result of those discussions, appropriate arrangements are to be made to ensure that happens."
The DUP move followed political crisis at Stormont after a police assessment that IRA members were involved in the murder of former IRA man Kevin McGuigan in Belfast in August.
