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Questions over Welsh Government’s £668m third-sector spending

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Where does the money go?

THE WELSH GOVERNMENT’s use of third-sector bodies and grant funding has created an unaccountable network of supposedly “independent” bodies that rely on public funding for their survival. Welsh Government accounts indicate that, at a time when public spending is under extreme pressure, the Welsh Government shovelled out over £688m in grants to third-sector bodies.

The sums involved are huge. Putting the £668m allocated to the third sector in 2024 in further context is instructive. That sum is £126m more than the Welsh Government allocated to the whole Economy budget (capital plus revenue) and over £230m more than it allocated to the Rural Affairs budget in 2023-24.

THE DATA

One set of key data shows payments made by the Welsh Government with a value of over £25,000. We examined that data, which does not capture all Welsh Government grants to third-sector bodies.

In one month, August 2024, and looking only at transactions over £25,000, the Welsh Government made cash grants to third-sector bodies totalling almost £5.5m. The same month, it made further capital grants of over £4.7m to Wales’s third sector.

However, that is not the end of the story. The Welsh Government also makes grant payments to private sector bodies and what it euphemistically calls “sponsored bodies”. Sponsored bodies are arm’s length bodies of the Welsh Government, such as the Arts Council Wales or Natural Resources Wales. Those bodies also award grants to third-sector bodies.

THE MONEY TRAIL

In effect, the Welsh Government gives grants to bodies to give grants to other bodies, who, heaven knows(!), might well give grants to other bodies. At every stage of that process, the grant scheme’s administrator will extract an administrative charge. That means that if every grant administrator in a simple chain extracted a 10% admin fee, the value of what reaches the end of the grant line has been reduced.

Suppose NRW gets a grant pot of £1,000,000. It distributes it in ten equal portions to ten different third-sector bodies. It charges a 10% admin fee for the grant process. £900,000 hits the second stage. That is £90,000 each. Now, the second stage grant administrator must filter down that money to a final end user. It charges a 10% admin fee. It allocates the cash in equal instalments to another ten bodies. The amount it disburses is, therefore, £81,000. Of the original £1,000,000, almost £200,000 is lost in admin costs.

That is a crude example, but consider this: the Welsh Government, NRW, the Arts Council for Wales, and the Welsh Council for Voluntary Action all appear as separate funders on several charities’ or NGOs’ websites. That is a duplication of effort and bureaucratic waste writ large.

Now, consider that across 428 organisations and £668m in funding. The potential waste is staggering and raises questions about transparency and allocation priorities.

Going back to August 2024, the Welsh Government also made grants of £240,000 to the Wales TUC and of £400,000 to Cardiff Airport, both scheduled under “grants to the private sector”.

THE GRANT MACHINE

A key challenge in scrutinising these data lies in their density and recording method.

The Welsh Government cannot provide a breakdown of every line item it allocates to third-sector bodies within the scope of a Freedom of Information Act request as the number of organisations involved and the number of individual grants is too large to capture. To address that issue, we focused on one organisation: The Welsh Council for Voluntary Action (WCVA).

The WCVA is the national membership organisation for the third sector and volunteering in Wales. It provides services and support to charities, community groups, voluntary organisations, social enterprises and volunteers.

In the ten months of 2024 for which the figures are available, and bearing in mind only expenditure over £25,000 is recorded, the WCVA received over £23.25m from the Welsh Government.

To get an idea of what the missing two months’ data might look like, we checked the previous year’s figures. That adds another £3.1m to the ten-month total.

There is no suggestion that the WCVA engages in sharp practice or is doing anything wrong. However, the money it receives as grants from the Welsh Government is public money, but the public has no say over where it goes or what it’s spent on. However, the Welsh Government does. Funding comes from defined pots for defined purposes that advance Welsh Government policy priorities. The bodies to which the WCVA makes grants, the amount they receive, and the purposes for which they are put are unidentifiable in the WCVA accounts. We can, however, say with certainty that there is little or no democratic accountability about where that money goes.

Even though the Welsh Government directs which funding pot gets the dough, ministers are not accountable for it. As we shall examine next week, the third sector operates alongside the public and private sectors and competes with both for scarce public money.

 

Health

Health board targets rise in steroid and gym drug use across west Wales

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THE LOCAL health board has launched new targeted measures after recording a sharp rise in the use of steroids and other image-enhancing drugs across the region.

Hywel Dda University Health Board says needle exchange figures show significant growth over the past two years in people seeking support related to Image and Performance Enhancing Drugs (IPEDs), including anabolic steroids and so-called Selective Androgen Receptor Modulators (SARMs).

SARMs, while marketed online as safer alternatives to steroids, are illegal to sell in the UK and health professionals warn they carry serious and largely unknown risks.

The health board has now teamed up with Dyfed Drug and Alcohol Service (DDAS) and Choices, a young people’s substance use service, to tackle what officials describe as an “emerging public health challenge”.

Workshops and outreach

Two key initiatives have been introduced.

Educational workshops are being delivered to young people, focusing on the risks of using performance-enhancing substances during physical development and the potential long-term effects on hormones, mental health and fertility.

At the same time, enhanced support is being offered to people already involved in gym and fitness culture, with harm-reduction advice, health monitoring and confidential drop-in services.

Support includes testosterone testing, blood checks, cycle provision kits and discreet one-to-one consultations.

One service user described the programme as “quick, professional and non-judgemental”.

They said: “The drop-in clinic for my blood test was really convenient. I was seen quickly and given a full run-down of the services available. The staff made me feel comfortable the whole time and I got my results back faster than expected.”

Taking support into the community

The team has also worked directly with local gyms, leisure centres and sports venues, speaking to more than 100 people during five outreach sessions.

Twelve DDAS staff members have completed specialist IPED training delivered by Public Health Wales to strengthen expertise within the service.

Rachel Wilson, Resilient Families Manager at Choices, said the aim is to reduce stigma.

She said: “We’re proud to work alongside Hywel Dda to ensure people who use IPEDs are met with understanding, not judgement. These initiatives are helping us reach individuals who may not have previously considered accessing support.”

Craig Jones, Prevention and Population Health Improvement Manager, added: “This work is about meeting people where they are. By listening and responding with compassion and evidence-based care, we’re making a real difference.”

Dr Ardiana Gjini, Executive Director of Public Health, said the approach showed the board’s commitment to early intervention.

She said: “These initiatives reflect a proactive, collaborative response to emerging health challenges and demonstrate our dedication to protecting the health of our communities.”

Anyone seeking confidential advice or support can contact DDAS on 03303 639997 to book an appointment.

 

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News

Port security fears grow after naval sabotage arrests in Germany

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Milford Haven and other UK energy hubs urged to stay vigilant amid rising European threats

CONCERNS about the security of major European ports have intensified after two men were arrested over an alleged attempt to sabotage German naval vessels at the Port of Hamburg.

Eurojust, the EU’s crime agency, said the suspects are believed to have deliberately interfered with ships by disabling safety switches, removing fuel tank caps, puncturing water lines and dumping more than twenty kilograms of abrasive gravel into an engine system.

Officials warned that, had the damage gone undetected, it could have caused serious mechanical failure, delayed deployments and endangered German Navy operations.

The suspects, port workers aged thirty-seven and fifty-four, were arrested in Germany and Greece following coordinated raids. Homes in several countries were searched as part of the investigation.

While Germany has not formally blamed Moscow, the arrests come amid growing fears of Kremlin-linked disruption activity across Europe since Russia’s invasion of Ukraine.

Recent incidents have included damaged undersea cables in the Baltic and suspicious drone activity around airports and military facilities.

Security analysts say ports — especially those handling military or energy assets — are increasingly viewed as soft targets.

The developments have clear relevance for west Wales, home to the Milford Haven waterway and the Port of Milford Haven — one of the UK’s most strategically important energy hubs.

The Haven handles a significant share of Britain’s liquefied natural gas imports and hosts major oil and gas infrastructure, alongside commercial and fishing traffic. Any disruption could have national consequences for energy supply as well as local jobs.

Maritime security experts say the Hamburg case highlights how insider access can pose risks.

The suspects there reportedly worked at the port itself, allowing them proximity to vessels and systems without raising immediate suspicion.

That has prompted calls for tighter background checks, improved surveillance and stronger reporting procedures at critical UK ports.

A senior maritime security consultant told The Herald: “The biggest threat is often not dramatic attacks but low-level interference — someone loosening fittings, contaminating fuel, damaging cables. Small acts can cause very expensive and dangerous failures.

“Energy and naval ports are now considered critical infrastructure and must be protected accordingly.”

A spokesperson at the Port of Milford Haven, said: “Security across the Waterway is made up of physical measures, procedures, information‑sharing, and intelligence work. These activities are coordinated across all facilities to maintain an effective, intelligence‑led approach to security.

“Both land‑based and marine teams contribute, including commercial operators and government agencies. Each organisation uses its own vetting processes, all of which follow national standards, regulations, and best practice.”

UK vigilance

Across the UK, ports already operate under the International Ship and Port Facility Security Code, which requires controlled access zones, patrols and monitoring.

However, the scale and complexity of sites such as Milford Haven mean constant vigilance is needed.

Industry sources say collaboration between harbour authorities, police and counter-terrorism teams has increased in recent years, particularly following the war in Ukraine.

A Port of Milford Haven spokesperson previously said security measures are regularly reviewed and updated to “protect people, vessels and infrastructure”.

Police have not indicated any specific threat locally.

Nevertheless, the Hamburg arrests serve as a reminder that sabotage attempts are no longer theoretical.

For communities around the Haven — where tankers, refineries and supply chains underpin the local economy — the message is simple: what happens in European ports today could easily have implications at home tomorrow.

 

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Crime

Teacher assaulted by pupil with weapon at Milford Haven school

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Teenager arrested on suspicion of attempted murder after lockdown triggered

A TEACHER was assaulted by a pupil brandishing a weapon at Milford Haven School on Tuesday afternoon (Feb 4), triggering an emergency lockdown and a major police response.

Officers from Dyfed-Powys Police were called to the school at around 3:20pm following reports that a member of staff had been attacked.

A lockdown was immediately implemented, with doors secured and pupils and staff told to remain inside classrooms and offices while the situation was dealt with.

Most pupils had already left at the end of the school day, but some remained on site for after-school activities.

Police confirmed that the injured teacher’s wounds are not believed to be stab injuries and they are currently receiving medical treatment.

Superintendent Chris Neve said: “We can confirm police are at Milford Haven Comprehensive School, following a report of the assault of a teacher by a pupil brandishing a weapon at the school at approx. 3.20pm.

“The teacher’s injury is not a stab injury. A lock down was implemented but has now been lifted. The teacher is receiving medical treatment for their injuries.

“All pupils at the location are safe, and most have gone home. Officers remain at the school.

“A 15-year-old boy has been arrested on suspicion of attempt murder and is in police custody.”

Parents told The Herald they were alerted to the lockdown shortly after 3:00pm via messages and social media, with some describing staff and pupils being kept inside rooms for safety as a precaution.

The lockdown has since been lifted, but officers remain at the scene while enquiries continue.

There have been no reports of any injuries to pupils.

The Herald has also contacted Pembrokeshire County Council for further comment.

Photo caption: Police vehicles outside Ysgol Aberdaugleddau Milford Haven School following Tuesday afternoon’s incident (Pics: Herald).

 

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