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Extra funding to help plug National Insurance shortfall in Wales

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Welsh Government steps in to protect vital services

WELSH public services are set to receive additional funding to help meet rising employer National Insurance (NI) costs—after a shortfall in support from the UK Government left a significant funding gap.

The increase in employer NI contributions has added an estimated £257 million in annual costs to the Welsh public sector. Of that, the UK Government has committed £185 million, leaving a £72 million deficit.

To help cover this shortfall, the Welsh Government has announced it will allocate £36 million from its reserves. This brings the total support package to £220 million, which will cover approximately 85% of the increased costs.

Finance Secretary Mark Drakeford said: “We’re protecting our vital public services by using £36 million from our reserves to help address the National Insurance shortfall left by the UK Government.

“While the UK Government has provided some funding, it does not match the actual financial burden now facing Welsh services. This leaves a multi-million-pound gap year after year.

“We’ve stepped in to support our services as much as we can, but we cannot afford to plug the entire shortfall. The UK Government should treat public services equally across the UK and honour its commitment to fully fund these extra costs.”

The Welsh Government warned that continued shortfalls could place pressure on frontline services if the funding gap is not fully addressed.

The Welsh Lib Dems responded to what they say was Mark Drakeford’s National Insurance Bombshell. Leader Jane Dodds MS said: “The Welsh Lib Dems have opposed this disastrous jobs tax from day one. Not only is it hammering our small businesses with unemployment in Wales rising, but it is now clear it will leave Wales with a gaping hole in its public finances and our public services worse off.

“The fact that the First Minister cannot even convince the UK government that the increased cost to the public sector should be covered by the Treasury shows how little influence Welsh Labour have in London.

“The Liberal Democrats will continue to argue for a reversal of the national insurance hike and fair funding for Wales.”

The Welsh Conservatives have criticised the UK and Welsh Labour Governments.

They said that despite receiving £185 million from the UK Government, the total cost to devolved public sector employers in Wales is estimated at £257 million, leaving a funding gap of over £70 million. The Tories highlighted that the Welsh Government said the additional funding will mitigate the impact on public services, but concerns remain about how this decision will affect their ability to address other financial pressures throughout the year.

Welsh Conservative Shadow Cabinet Secretary for Finance, Sam Rowlands MS, said: “Before the general election Labour promised that two governments working at either side of the M4 would deliver for Wales. Instead, we see a party at war with itself, with a Welsh Labour Government seemingly powerless to influence their UK counterparts.

“If Labour hadn’t squandered hundreds of millions of pounds on vanity projects and inefficiencies, this funding gap would not pose such a substantial challenge. They must also explain how they will address other financial pressures later in the year after depleting reserves to plug this shortfall.

“This situation lays bare the UK Labour Government’s disregard for Wales and Welsh Labour’s ongoing failure to competently manage its own budget.”

 

Crime

Train disruption after youths seen playing on tracks at Haverfordwest station

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Police attend after dangerous incident involving football on railway line

TRAINS were delayed at Haverfordwest railway station on Tuesday (Apr 1) after a group of youths were seen playing with a football near live tracks, prompting a police response.

Footage captured by a bystander shows several young people on the platform throwing and kicking a ball across the station. In one clip, a youth is seen kicking a football from Platform 2 towards Platform 1, but the ball overshoots and lands beyond a fence into the station car park.

More concerning footage shows the ball rolling onto the railway line, with one youth climbing down onto the tracks to retrieve it—an act that poses serious risk of injury or death due to live rails and the potential for oncoming trains.

The incident caused disruption to services, with two trains delayed by 25 minutes while the situation was dealt with.

Police attended the scene, although it is not yet clear whether any arrests were made. Officers have been approached for comment.

Railway safety rules strictly prohibit access to the tracks except by authorised personnel, and incidents such as this are treated seriously due to the potentially fatal consequences.

The Herald understands that such behaviour can also lead to significant disruption across the rail network, affecting passengers and services well beyond the immediate area.

Anyone with further information about the incident is urged to contact police.

 

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Business

Haverfordwest producers showcased by Tesco in national Welsh food event

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Local firms highlighted as supermarket giant backs £27bn Welsh food sector

HAVERFORDWEST food producers were among those selected to take centre stage at a national showcase celebrating the very best of Welsh food and drink.

Supermarket giant Tesco hosted the St David’s Day event in partnership with the Welsh Government’s Food & Drink Wales initiative, bringing together leading suppliers from across the country.

Two Pembrokeshire-based businesses — Blas y Tir, part of Pembrokeshire Creameries, and Puffin Produce, both based in Haverfordwest — were among those chosen to represent Welsh produce on a national stage.The event, held to mark St David’s Day, showcased a wide range of products including dairy, baked goods, meats, curries and spirits, highlighting the breadth and quality of food produced across Wales.

Organisers said the showcase underlined the importance of supporting local suppliers, many of which are family-run businesses rooted in their communities and reliant on local agriculture.

The Welsh food and drink supply chain is estimated to be worth £27 billion, with companies like those in Pembrokeshire playing a key role in sustaining rural jobs and supporting farmers.

Visitors to the event were given the opportunity to meet producers and sample products, while a surprise performance from Welsh singers added a cultural element to the day’s celebrations.

Enfys Fox, relationship manager for local sourcing at Tesco Wales, said: “St David’s Day is a time to celebrate everything that makes Wales special, and our suppliers are at the very heart of that story.

“This event was a fantastic opportunity to showcase the incredible range, quality and heritage of Welsh produce available in our stores.

“We are incredibly proud to collaborate with the Welsh Government and work with so many dedicated Welsh suppliers, many of them family businesses with deep roots in their communities. By supporting them, we’re not only bringing great products to our customers, but also investing in local jobs and the wider Welsh economy.”

The Herald understands that products from Pembrokeshire suppliers featured at the event are widely stocked in Tesco stores across Wales, giving local shoppers direct access to locally sourced goods.

While the showcase celebrated success, it also highlighted the growing importance of ensuring Welsh producers continue to secure fair opportunities within major retail supply chains.

The event formed part of Tesco’s wider commitment to strengthening partnerships with Welsh suppliers and promoting locally sourced food throughout the year.

 

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Health

Paramedic recruitment freeze confirmed in internal email to students

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‘No jobs in 2026–27’ as graduates told service has ‘more paramedics than required’

AN INTERNAL email sent to student paramedics has confirmed that no newly qualified paramedics will be recruited in Wales during the 2026–27 financial year, escalating concerns over workforce planning in the NHS.

The message, seen by The Herald, was sent to final-year students following a board meeting of the Welsh Ambulance Services NHS Trust on March 26.

It confirms that the trust “does not require any NQPs” this year, stating the decision is based on affordability and workforce restructuring.

The development follows reporting by BBC Wales that students had already been advised to seek work overseas.

‘Simply not affordable’

In the email, the ambulance service states:
“Employing NQPs in 2026 is simply not affordable… No extra funding has been made available by Welsh Government or our commissioners.”

It adds that a review of workforce needs concluded:
“We currently have more paramedics than required and enough lead practitioners to fill any short to medium term vacancies.”

Students say they have also been told the service is aiming to reduce paramedic numbers, despite ongoing delays in ambulance response times across Wales.

Graduates left without roles

Around 70 students are expected to graduate this year from Swansea University and Wrexham University.

Training is heavily subsidised by Healthcare Education and Improvement Wales, with costs estimated by students at around £50,000 per person.

Despite this investment, graduates have now been told to consider employment outside Wales—or even overseas—to begin their careers.

Patient care concerns raised

Students have warned the decision could impact patient care if fewer fully qualified paramedics are deployed on the frontline.

They say being redirected into lower-grade roles means their full clinical training will not be used.

One student told The Herald: “We are ready to go straight into frontline care. Instead, we’re being told to look abroad. It doesn’t make sense.”

Government under pressure

A Welsh Government response seen by The Herald acknowledges the issue and says ministers are working with the ambulance service and universities to support affected graduates.

However, the internal email suggests the decision is already firm for the coming financial year.

The Herald has approached the Welsh Government and the Welsh Ambulance Service for further comment.

 

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