News
Questions over Welsh Government’s £668m third-sector spending
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
Resident doctors in Wales vote to accept new contract
RESIDENT doctors across Wales have voted to accept a new contract, with 83% of those who took part in a referendum backing the agreement, according to BMA Cymru Wales.
The contract includes a four per cent additional investment in the resident doctor workforce and introduces a range of reforms aimed at improving training conditions, wellbeing and long-term workforce sustainability within NHS Wales. The BMA says the deal also supports progress towards pay restoration, which remains a central issue for doctors.
Key changes include new safeguards to limit the most fatiguing working patterns, measures intended to address medical unemployment and career progression concerns, and reforms to study budgets and study leave to improve access to training opportunities.
Negotiations between the BMA’s Welsh Resident Doctors Committee, NHS Wales Employers and the Welsh Government concluded earlier this year. Following a consultation period, a referendum of resident doctors and final-year medical students in Wales was held, resulting in a clear majority in favour of the proposals.
Welsh Resident Doctors Committee chair Dr Oba Babs Osibodu said the agreement marked a significant step forward for doctors working in Wales.
He said: “We’re proud to have negotiated this contract, which offers our colleagues and the future generation of doctors safer terms of service, fairer pay, and better prospects so that they can grow and develop their careers in Wales.
“This contract will help to retain the doctors already in training, and also attract more doctors to work in Wales, where they can offer their expertise and benefit patients.”
Dr Osibodu added that the BMA remains committed to achieving full pay restoration and acknowledged that challenges remain for some doctors.
“Whilst this contract sets the foundations for a brighter future for resident doctors in Wales, we recognise that there are still doctors who are struggling to develop their careers and secure permanent work,” he said. “We need to work with the Welsh Government and NHS employers to address training bottlenecks and underemployment.”
The Welsh Government has previously said it recognises the pressures facing resident doctors and the importance of improving recruitment and retention across NHS Wales, while also highlighting the need to balance pay agreements with wider NHS funding pressures and patient demand.
The new contract is expected to be phased in from August 2026. It will initially apply to doctors in foundation programmes, those in specialty training with unbanded rotas, and new starters, before being rolled out to all resident doctors across Wales.
Crime
Swansea man jailed for online child sex offence dies in prison
A SWANSEA man who was jailed earlier this year for attempting to engage in sexual communication with a child has died while in custody.
Gareth Davies, aged 59, of the Maritime Quarter, was serving an 18-month prison sentence after being convicted in May of sending sexually explicit messages to what he believed was a 14-year-old girl. The account was in fact a decoy used as part of an online safeguarding operation.
The court heard that Davies began communicating with the decoy between November and December 2024 and persistently pursued the individual, later attempting to arrange a face-to-face meeting. He was arrested after being confronted by the decoy operators.
Davies had pleaded not guilty but was convicted following a trial. At the time of sentencing, police described the messages as extremely concerning and said his imprisonment was necessary to protect children.
It has now been confirmed that Davies died at HMP Parc on Wednesday (Nov 27) while serving his sentence.
The Prisons and Probation Ombudsman has launched an independent investigation into the death, which is standard procedure in all cases where someone dies in custody. No cause of death has been released at this stage.
A coroner will determine the circumstances in due course.
Farming
Welsh Conservatives warn climate plans could mean fewer livestock on Welsh farms
THE WELSH CONSERVATIVES have challenged the Welsh Government over climate change policies they say could lead to reductions in livestock numbers across Wales, raising concerns about the future of Welsh farming.
The row follows the Welsh Government’s decision, alongside Plaid Cymru and the Welsh Liberal Democrats, to support the UK Climate Change Committee’s Fourth Carbon Budget, which sets out the pathway towards Net Zero greenhouse gas emissions by 2050.
The Carbon Budget, produced by the independent Climate Change Committee (CCC), states that meeting Net Zero targets will require a reduction in agricultural emissions, including changes to land use and, in some scenarios, a reduction in livestock numbers.
During questioning in the Senedd, the Welsh Conservatives pressed the Deputy First Minister and Cabinet Secretary for Climate Change and Rural Affairs on whether the Welsh Government supports reducing livestock numbers as part of its climate strategy.
Speaking after the exchange, Welsh Conservative Shadow Cabinet Secretary for Rural Affairs, Samuel Kurtz MS, said the Welsh Government could not distance itself from the implications of the policy it had backed.
Mr Kurtz said: “By voting in favour of these climate change regulations, Labour, Plaid Cymru and the Liberal Democrats have signed up to the UK Climate Change Committee’s call to cut livestock numbers in Wales, and they cannot dodge that reality.
“The Deputy First Minister’s smoke-and-mirrors answers only confirm what farmers already fear: that Labour, along with their budget bedfellows in Plaid and the Lib Dems, are prepared to sacrifice Welsh agriculture in pursuit of climate targets.”
He added that the issue came at a time of growing pressure on the farming sector, pointing to uncertainty over the proposed Sustainable Farming Scheme, the ongoing failure to eradicate bovine TB, nitrogen pollution regulations under the Nitrate Vulnerable Zones (NVZs), and proposed changes to inheritance tax rules affecting family farms.
The Welsh Government has repeatedly said it does not have a target to forcibly reduce livestock numbers and has argued that future emissions reductions will come through a combination of improved farming practices, environmental land management, and changes in land use agreed with farmers.
Ministers have also said the Sustainable Farming Scheme, which is due to replace the Basic Payment Scheme, is intended to reward farmers for food production alongside environmental outcomes, rather than remove land from agriculture.
The UK Climate Change Committee, which advises governments across the UK, has stressed that its pathways are based on modelling rather than fixed quotas, and that devolved governments have flexibility in how targets are met.
However, farming unions and rural groups in Wales have warned that policies focused on emissions reduction risk undermining the viability of livestock farming, particularly in upland and marginal areas where alternatives to grazing are limited.
The debate highlights the growing tension between climate targets and food production in Wales, with livestock farming remaining a central part of the rural economy and Welsh cultural identity.
As discussions continue over the final shape of the Sustainable Farming Scheme and Wales’ long-term climate plans, pressure is mounting on the Welsh Government to reassure farmers that climate policy will not come at the expense of the sector’s survival.
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