The Northern Secretary said she cannot rule out Westminster legislating on welfare matters in Stormont.
Theresa Villiers is meeting the Northern parties and assessing her options following last night's rejection of the Welfare Reform Bill.
Sinn Féin, the SDLP and the Green Party made a petition of concern - a blocking mechanism - that meant it did not get the required cross-community support.
The DUP has said the assembly is entering "uncharted waters".