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Social care crisis reveals urgent need for funding reform

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INCREASING demand, flatlining budgets, and systemic neglect are pushing adult social care to the brink—especially in rural areas like Pembrokeshire.

Across Wales and England, councils are sounding the alarm: local government funding is no longer sufficient to sustain social care services without sacrificing other essential provisions. Pembrokeshire, facing one of the steepest funding gaps in Wales, is at the sharp end of the crisis.

Mounting pressures on councils

In Wales alone, councils identified £106 million in in-year pressures for adult social care in 2024–25, with a further £223 million forecasted—amounting to 40% of all local government funding pressures. An ageing population and increasingly complex care needs are driving costs ever higher. National projections suggest that by 2037, spending on community care services for older people will have risen by 177%.

Pembrokeshire is particularly exposed. The county’s demographic profile, combined with historic underfunding, leaves it struggling to meet rising demand. The gap between the actual cost of providing care and the budget allocated to pay for it is one of the widest in Wales.

When social care costs exceed budget forecasts, councils are left with stark choices: cut other services, lay off staff, or dip into reserves. Pembrokeshire County Council has established a reserve fund to tackle in-year pressures—but this is a temporary fix, not a long-term solution.

The consequences are already visible. Day-care closures, reductions in library and leisure funding, and hiring freezes have all taken their toll. County Hall, once a hub of local services, is now a ghost of its former self.

Care homes under strain

While councils administer social care budgets, most care home services in Pembrokeshire are delivered by private providers—businesses that must remain profitable to survive. Yet the rates they receive vary wildly between counties. Pembrokeshire pays higher rates than its neighbours, but even this is not enough to guarantee stability.

Care homes face rising costs, particularly from increases to National Insurance and the Real Living Wage. One local group running six care homes reports a £150,000 annual cost increase due to these changes. This raises the risk of closures and forces families to shoulder top-up fees.

Smaller, independent care homes—of which Pembrokeshire has many—are particularly vulnerable. Without urgent intervention, some may shut their doors for good.

Chronic staff shortages

Recruiting and retaining staff in rural areas is another serious challenge. Pembrokeshire’s geography and limited transport infrastructure make it harder to attract qualified care workers. The result is high workloads, stress, and burnout for existing staff.

Domiciliary care services are especially strained. Community providers such as Community Interest Care CIC rely heavily on overseas staff, as many local residents are unwilling or unable to take up care work. The reasons are clear: physically demanding roles, unsocial hours, and poor pay compared to less stressful jobs.

According to Care Inspectorate Wales, nearly a quarter of social care workers are experiencing financial hardship, and a significant number are dissatisfied with their pay.

The burden of unpaid care

The crisis extends beyond formal care. Research from Carers Week shows that 23% of Welsh adults—around 584,000 people—now provide unpaid care to family or friends, the highest proportion in the UK. In total, unpaid care in Wales is estimated to be worth £8.1 billion annually.

This hidden workforce provides 96% of all care, often at enormous personal cost. Nearly half of unpaid carers have given up paid work, while many more have cut back on food, heating, or transport to make ends meet. Over half say they cannot manage monthly expenses, and a growing number are turning to foodbanks.

Yet the Welsh and UK governments continue to rely on unpaid carers as a cornerstone of their care strategy, offering minimal financial support in return. While small-scale grants exist, access is limited and the process is often confusing and burdensome.

A system in denial

The situation lays bare two urgent and interlinked policy failures: the outdated model of local government finance and the fragmented, underfunded system of social care provision.

Councils are being asked to deliver 21st-century care with 20th-century funding tools. Piecemeal reform—pilot schemes, short-term pots of money, and local fixes—cannot address the scale of the challenge.

Comprehensive reform is needed, but political appetite is lacking. Promised reviews of local government funding remain stalled, while plans to better integrate health and social care remain vague and underfunded. The idea of a national care service has merit, but no roadmap exists—nor any clarity on how such a service would be paid for.

The uncomfortable truth is that as people live longer, often with complex conditions, the cost of care will only increase. Without bold action and honest debate—on taxation, on responsibilities, and on priorities—the crisis in social care will deepen.

And in places like Pembrokeshire, the cracks are already wide open.

News

UK government boosts Port Talbot transition fund with extra £22m support

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AN EXTRA £22 million in UK Government funding has been announced to support workers and businesses affected by Tata Steel’s transition at Port Talbot, taking the total community support package to £122 million.

The funding uplift means the Tata Steel / Port Talbot Transition Board fund now stands at £102 million from the UK Government, alongside a further £20 million contributed by Tata Steel. Ministers say the additional money could help support up to 1,000 more jobs across the local economy.

Since July 2024, the Transition Board has already allocated £80 million to the Port Talbot area, funding thousands of training courses for individuals and helping nearly 200 businesses to start, expand, invest in new equipment and move into new markets.

The UK Government said the rapid deployment of the funding has helped prevent an increase in unemployment benefit claims during Tata Steel’s shift towards greener steelmaking.

Following strong demand for support, a further £22 million has now been allocated, extending the availability of Supply Chain, Business Start-Up, Resilience and Growth funding into 2026. The announcement was made on Thursday (Dec 18).

Secretary of State for Wales Jo Stevens said the government was determined to continue backing the community through the transition.

She said: “This government has acted decisively to support workers and businesses in Port Talbot, allocating the entire £80 million in initial funding quickly into the community to ensure that whoever needed support could access it.

“Grants have been delivered swiftly to meet the needs of local people, businesses and communities, and there is evidence that our approach is working. But we want to make sure that as many people as possible have continued access to support with the extra £22 million for local businesses into the new year.

“We said we would back workers and businesses affected by the transition at Port Talbot and are delivering on that promise.

“It remains a difficult time for Tata Steel workers, their families and the community, but we will continue to support them.”

Ms Stevens announced the funding increase during a visit to Port Talbot-based engineering firm JES Group, which has received Transition Board support. She also toured the JES Academy, which is providing training for dozens of former and current steelworkers.

Justin Johnson, Director of JES Group and The Skills Academy, welcomed the announcement.

He said: “I want to express our gratitude to the UK Government for establishing the original Transition Fund and for now having the foresight to increase the level of support at such a critical moment.

“This uplift will make a significant difference to supply-chain companies like ours. As Tata Steel transitions to electric arc furnace steelmaking, businesses like JES must transition alongside it, while also diversifying into new sectors to reduce reliance on what was once our core work.

“We believe the history of steelmaking in Port Talbot is far from over and that a brighter, greener future lies ahead, but while that future takes shape, diversification is essential.

“The journey has not been easy, and it is far from over, but this additional support creates real opportunities for stability and growth. I also want to recognise Business Wales and Neath Port Talbot Council’s economic development team for their guidance and practical assistance.”

The Transition Board was established to protect jobs and the local economy during Tata Steel’s move to greener steel production. Information on applying for support is available via the Tata Steel Transition Information Hub.

The UK Government has also committed £2.5 billion to rebuild and decarbonise the UK steel industry, with a national Steel Strategy due to be published in early 2026. This includes £500 million already allocated to Tata Steel for the electric arc furnace now under construction at Port Talbot.

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Charity

Communities across Pembrokeshire unite in memory of Sally Allen

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THE TRAGIC loss of Sally Allen in 2025 sent shockwaves through communities across Pembrokeshire and beyond. Deeply loved and widely respected, Sally was an integral part of the agricultural and equestrian world. Her sudden passing left an immeasurable sense of loss for her family, friends, and the many organisations and communities she was part of.

In the days and weeks following the accident, people from across the county came together in an extraordinary show of compassion, solidarity and remembrance. Sandy Bear Children’s Bereavement Charity was on hand to offer guidance and support to communities affected by the tragedy, helping individuals and families navigate the early and often overwhelming stages of grief.

Support in Sally’s memory has been widespread, with particular strength coming from the agricultural and equestrian sectors that meant so much to her. Young Farmers Clubs across Pembrokeshire organised fundraising evenings and gatherings, creating spaces for people to come together, share memories, and acknowledge the profound loss felt by so many.

On Monday 15 December, a deeply moving moment of remembrance took place as Sally’s family came together with David Evans, Chief Executive Officer of Clynderwen and Cardiganshire Farmers Ltd (CCF), along with further representatives from CCF and Sandy Bear Children’s Bereavement Charity. The occasion marked the launch of a specially commissioned design on one of CCF’s lorries.

The vehicle, N12 CCF, now proudly carries sunflowers – a flower Sally loved – alongside her name, celebrating her life while also featuring the Sandy Bear logo. This thoughtful tribute was warmly received by the Allen family and ensures that Sally’s memory, kindness and impact will continue to be carried far and wide.

CCF is deeply rooted in the landscapes and communities Sally cared about. At the launch, Mr Evans announced that CCF will make a donation to Sandy Bear aligned with the miles travelled by N12 CCF throughout January, transforming everyday journeys into a lasting legacy of support.

In addition, a JustGiving page will remain open until the end of January, allowing individuals and organisations to continue honouring Sally’s memory by supporting Sandy Bear alongside the CCF fundraiser.

Sandy Bear Children’s Bereavement Charity supports children and young people across Wales who are grieving the death of someone important to them. Being present at times of profound loss, and helping communities process grief with care and compassion, is at the heart of the charity’s work.

Sally Allen’s life touched many. The response to her passing has shown not only the depth of love felt for her, but the strength of communities when they come together in kindness. Through these acts of remembrance and generosity, her legacy will continue to make a difference to others during their darkest moments.

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Crime

Haverfordwest man denies historic rape charges involving underage girl

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Trial listed at Cardiff Crown Court for 2027

A HAVERFORDWEST man has denied a series of historic sexual offences against an underage girl and is due to stand trial at Cardiff Crown Court in 2027.

Lee Mahagan, aged 52, of High Street, Haverfordwest, has pleaded not guilty to four counts of rape and two counts of engaging in penetrative sexual activity with a child.

The charges relate to allegations involving a girl aged between 13 and 15, which are said to have occurred in Cardiff between 2009 and 2010.

The court was told that the case is expected to take around five days when it goes before a jury. A trial date has been set for January 25, 2027.

Mahagan was granted conditional bail by Judge Hywel James following a hearing at Cardiff Crown Court.

The defendant is represented by David Pinnell, while Daniel Jones is appearing for the prosecution.

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