News

National Insurance rise creates black hole in council budget

Published

1 year ago

June 12, 2025

THE PEMBROKESHIRE HERALD has confirmed that Pembrokeshire County Council faces significant budget pressure due to Labour’s hike in employers’ National Insurance contributions (NICs).

The pressures stem not only from the local authority’s obligation to pay increased NICs for its own staff, but also from the added costs passed on by external service providers — particularly in social care — who are also affected by the rise.

SETTING A BUDGET BLIND

When former Cabinet Member for Finance Josh Beynon presented this year’s budget, he flagged the potential risks the NIC increase posed to the Council’s finances in both the current and following financial years. However, at the time, due to the UK Government’s delay in confirming its funding plans, he did not know whether the full NIC increase would be covered.

The Welsh Government has claimed it lobbied Westminster to ensure the full increase would be funded, avoiding in-year pressures on already stretched council budgets.

Instead, a combination of Westminster funding and Welsh Government reserves will cover around 85% of the increase. Whether that support remains in place beyond the current financial year is unclear. Once the first two years of the current spending review period end in April 2027, further funding looks unlikely.

NI RISE WILL HIT COUNCIL SERVICES

Even absorbing a fraction of the cost will have a significant impact on Pembrokeshire’s budget.

We asked the County Council to outline the scale of the impact.

Cllr Alistair Cameron, Cabinet Member for Finance and Efficiency, said: “We have been advised that the UK and Welsh Governments will meet circa 85% of the cost of raising the employer’s National Insurance contribution rate. This leaves Pembrokeshire County Council with an in-year pressure of approximately £0.75m. This will also be a pressure for the 2026–27 budget.

“The Council delivers many of its statutory functions through external organisations (such as social care providers). I understand they are not receiving any compensation for this added expense. This will, therefore, add an estimated £2m to their cost base. I fear they will be looking to the Council to meet the additional costs.

“Pembrokeshire County Council is already working hard to plan for next year’s budget, and we will have to take account of this shortfall, along with other pressures, including UK and Welsh Government funding settlements and rising demand for statutory services such as social care.

“We have made significant cost savings over several years and are trying to run our services as efficiently as possible while responding to public need.

“We will be consulting with the Pembrokeshire public on different budget options, but it will not be easy.

“The final decision on next year’s budget rests with Full Council. We aim to discuss all options with the political groups and non-aligned councillors to try to reach an agreement that best serves the people of Pembrokeshire.”

SOCIAL CARE IN CRISIS

The increase in NIC has already led to warnings that the social care sector in Wales faces a £150 million funding gap.

An increase in employer NICs from 13.8% to 15%, alongside a reduction in the earnings threshold from £9,100 to £5,000, is expected to hit the sector hard.

These changes equate to a 37% rise in NICs for an employee earning £25,000 — equivalent to the Real Living Wage.

Combined with the increase in both the National Minimum Wage and National Living Wage, these changes are set to add tens — or even hundreds — of thousands of pounds in additional annual staffing costs for care homes.

In Pembrokeshire, one major care provider has already reorganised its staff structure and reduced the number of full-time equivalent posts. Smaller providers are also being forced to cut back on where and how often staff work in a bid to control costs.

The Nuffield Trust, an independent think tank, has warned that the Chancellor’s policy decisions could see “swathes of the social care market [collapse] under these extra cost pressures.”

If social care provision fails to keep pace with demand, the resulting pressure on the NHS will inevitably grow. In Pembrokeshire — with one of the oldest populations in Wales — that could prove disastrous.

To maintain care levels and ensure service users’ dignity, Pembrokeshire County Council would be left with two stark choices: cut other services, raise council tax, or most likely, both.

Whether Rachel Reeves has considered that consequence is unclear — particularly in light of the continuing prioritisation of the NHS, which is exempt from the NIC rise, and the lack of investment in the wider system that props it up.

Local Government

Milford Haven civic service marks start of mayoral year

Published

4 hours ago

June 21, 2026

Tom Sinclair

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)

Charity

Toy Story fans fill charity toy box at Haverfordwest cinema

Published

14 hours ago

June 20, 2026

Tom Sinclair

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.

Cover photo:

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

Health

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

Published

14 hours ago

June 20, 2026

Tom Sinclair

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.