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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.

 

Local Government

Milford Haven civic service marks start of mayoral year

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Mayor’s charities named as civic leaders gather at St Katharine and St Peter’s Church

THE CIVIC SERVICE of the Mayor of Milford Haven, Cllr Mark Woodward, took place at St Katharine and St Peter’s Church on Saturday (June 20).

The service marked Cllr Woodward’s election as Mayor and First Citizen of Milford Haven.

It was conducted by Rev Dr Adrian Furse and Canon John Cecil, with music from church organist Richard Stephens, Gelliswick Community Choir and Milford Haven Town Band.

Guides and Brownies, Milford Haven Sea Cadets and Royal Marines Cadets were also among those taking part, with councillors Colin Sharp and Yvonne Southwell acting as ushers.

Refreshments followed at Milford Haven Bowling Club.

Local MS Paul Davies was among those attending the service and wished the new mayor all the best for his term in office.

Cllr Woodward’s chosen charities for the year are Patch Charity and Greenacres Rescue.

Photo caption:

Civic guests attended the Mayor of Milford Haven’s service at St Katharine and St Peter’s Church on Saturday (Pic: Supplied)

 

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Charity

Toy Story fans fill charity toy box at Haverfordwest cinema

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Donations pour in for SNAP Specialist Play as families embrace Toy Story 5 launch

A TOY STORY-themed charity appeal at a Haverfordwest cinema has got off to a flying start, with families donating toys to support children with additional needs across Pembrokeshire.

The Palace Cinema has teamed up with local charity SNAP Specialist Play to collect new and pre-loved toys during screenings of the newly released Toy Story 5.

The appeal centres around an “Andy’s Toys” donation box, inspired by the beloved Pixar films, which has already been filled by generous filmgoers.

Toy Story magic: The Palace Cinema foyer has been transformed with themed decorations to celebrate the film’s release

Cinema manager Hannah Cramp said the response from the community had exceeded expectations.

Families attending opening screenings have arrived carrying bags of toys, with many children keen to share their own treasured items to help others.

The cinema has transformed its foyer into a colourful Toy Story-themed experience, complete with hand-painted decorations, character silhouettes, bunting and famous film slogans including “Reach for the Sky” and “To Infinity and Beyond”.

Many visitors have also embraced the spirit of the occasion by attending in costume as their favourite Toy Story characters.

Specialist support: SNAP’s sensory facilities help children with additional needs learn and develop through play

The toys are being donated to SNAP Specialist Play, a charity based within the Child Health Department at Withybush Hospital.

SNAP supports pre-school children with additional and complex needs through specialist play sessions designed to encourage communication, physical development and sensory learning.

Its facilities include sensory rooms, therapeutic play spaces and bespoke equipment used by speech and language therapists, occupational therapists and physiotherapists.

Project manager Cindy Jenkins said the charity was delighted by the partnership and grateful for the generosity shown by local families.

She said every toy donated would be put to good use, either during specialist play sessions, at family events, or through seasonal initiatives such as Christmas gift boxes for children and their siblings.

The appeal will continue until mid-July, with organisers hopeful that even more donations will be received over the coming weeks.

Anyone attending Toy Story 5 at the Palace Cinema is invited to bring along a new or good-quality pre-loved toy to support the appeal.

Toy Story magic: The Palace Cinema foyer has been transformed with themed decorations to celebrate the film’s release

Cover photo:

Fancy dress fun: Palace Cinema manager Hannah Cramp helping launch the Toy Story charity appeal.

 

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Health

Medicine shortages now ‘most severe on record’, health leaders warn

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PATIENTS are facing some of the worst medicine shortages ever seen in the UK, with pharmacists warning the situation now poses a serious risk to safety.

The National Pharmacy Association said shortages affecting commonly used medicines are becoming more frequent, lasting longer, and causing increasing disruption for patients, GP surgeries and pharmacies.

The warning comes as Serious Shortage Protocols for Creon, used by people with pancreatic cancer and cystic fibrosis to help digest food, have been in place since May 2024 and have now been extended until July 10, 2026.

HRT treatment Estradot has also been under a Serious Shortage Protocol since December 2024, with the current extension also running until July 10.

Patients travelling between pharmacies

A survey by the National Pharmacy Association found that 98 per cent of pharmacies had encountered patients who had visited several pharmacies in one day to find a prescription.

It also found that 96 per cent of pharmacies believed the current situation posed a serious risk to patient safety, while 89 per cent said they had been unable to dispense a medicine at least once a day because of supply problems.

Some pharmacy teams have also faced anger and abuse from patients unable to obtain medication.

Olivier Picard, Chair of the National Pharmacy Association, said: “Medicine shortages are becoming more frequent, lasting longer and causing increasing disruption for patients.

“These shortages are some of most severe the UK has experienced.

“It is deeply distressing to find patients who have travelled from pharmacy to pharmacy to find the medicines they need without success.”

Calls for urgent taskforce

The NPA is calling on the government to convene an emergency taskforce involving manufacturers, wholesalers, clinicians and pharmacists.

It also wants changes to rules which currently stop pharmacists from making simple substitutions, such as changing a tablet to a capsule or a cream to an ointment, even where a safe alternative is available.

Professor Victoria Tzortziou Brown, President of the Royal College of GPs, said medicine shortages were frustrating for patients, GPs and pharmacists, and added pressure to already stretched services.

She said the College supported pharmacists being able to make limited changes to prescriptions where a medicine is unavailable and a safe alternative exists.

She added: “The most important thing is that patients are able to access the medication they need safely and without delay.”

The Cystic Fibrosis Trust and Pancreatic Cancer UK have also raised concerns about the impact of shortages of pancreatic enzyme replacement therapy, including Creon, on people who rely on the medication to digest food, maintain weight and stay well enough for treatment.

 

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