Further political progress in Northern Ireland could undermine violent groups which have stepped up efforts to wreck the peace process, it has been claimed.

A report on the paramilitaries warned that dissident republicans were now attracting informal support from former Provisional IRA members and remained determined to launch attacks in Britain.

But the Independent Monitoring Commission (IMC), which reports to the British and Irish Governments on the activities of violent groups, said the early devolution of policing and justice powers to the Stormont Assembly could provide a "potent intervention" to bolster the peace process.

The report covered the six months of March to August, when the Real IRA shot dead two soldiers and the Continuity IRA killed a police officer, and the document warned that the dissident threat was now the highest for six years.

"Some activities have involved co-operation between individuals from different groups without there being strategic co-operation by their leadership," the IMC said.

It added: "The overall level of dissident activity was markedly higher than we have seen since we first met in late 2003. The seriousness, range and tempo of their activities all changed for the worse in these six months. During this period dissident republicans were violent and showed an intent to kill if the opportunity arose."

And while the majority of new recruits to the organisations were described as inexperienced young men, the IMC warned: "There are, however, now indications that former republican terrorists have, as individuals, provided services in some instances to dissident republican groups, which, even if occasional, can significantly add to the threat."

IMC spokesman Lord Alderdice added that since the Provisional IRA ended its campaign and effectively disbanded, cases had emerged of former members assisting dissidents.

"There are some indications of individual people on an ad hoc, almost one might say social basis, giving assistance or a handout to people of their acquaintance," he said. "What is important at this stage is to say that there is no indication of any actual transition of people who were members of one organisation to be members of another organisation."

But while the Democratic Unionist Party (DUP) and Sinn Fein remain divided over when the transfer of policing and justice powers can be completed, the IMC said the move could help undermine dissidents. It said: "The early devolution of policing and justice powers to the Northern Ireland Assembly and Executive could provide a potent intervention. This would not be because the dissidents would be impressed by it. It would be because policing and justice would no longer be a point of contention across the political divide, rather, it would be a platform for co-operation against those trying to undermine the peace process."