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Politics

14,000 job losses or 22% tax hike: The stark choice facing Welsh councils

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WELSH councils have warned plugging a £436m budget gap for next year would require an average council tax increase of 22% or the loss of 14,000 jobs.

The Welsh Local Government Association (WLGA), which represents Wales’ 22 councils, said local authorities face £560m of pressures in 2026/27 – £100m more than expected.

Councils warned a 2% settlement in the Welsh Government’s “roll-over” draft budget would be “extremely damaging” for services and leave a £436m shortfall. Ministers have proposed an average 2.5% increase, with a funding floor to ensure no council receives less than 2.3%.

Bridging the £436m gap would require “unconscionably high” council tax rises of about 22% or the equivalent of around 14,000 job cuts across Wales, according to the WLGA.

The stark warning was echoed by Wales’ outgoing auditor general who said some councils are “very close” to having to issue a formal section 114 (effective bankruptcy) notice.

Adrian Crompton told the Senedd’s finance committee that councils – which are forecasting a £184m overspend in 2025/26 – are struggling to balance their books.

He said: “There are undoubtedly a few authorities that are very close to having to issue a section 114. Our assessment at the time of publishing our report was that none were about to, so they all had sufficient grip on their in-year position, so it wasn’t imminent.

“But some are right at the edge and they are all facing some very significant demand-led pressures in areas like children’s services, additional learning needs, temporary accommodation, which are very hard to predict.”

Mr Crompton, whose eight-year term as auditor general ends in July, added: “When you’re right at the edge of financial sustainability, if you get hit with a couple of significant cases that you have to deliver against, that could be sufficient to tip authorities over the edge.”

He warned their fragile financial state means councils would be the “most immediately and severely hit” sector if the Welsh Government’s budget fails to pass.

The financial pressures facing councils were detailed in the WLGA’s written evidence on the draft budget which showed how demand-led services are spiralling.

For example, the net cost of homelessness and temporary accommodation has exploded nearly eight-fold in a decade – from £12.8m in 2016/17 to £100.8m budgeted for this year.

The WLGA also warned of “unsustainable” pressures on school finances, with children’s care and education accounting for the majority of the forecasted £184m overspend.

One council said 33 primary and six secondary schools – nearly 70% of all schools in its area – were projecting a deficit budget.

Another reported its schools had “completely eroded a £15m surplus balance into a £2m deficit” and projected a £9m in-year overspend. Others warned of job losses, reserves running dry and class sizes rising above legal limits.

The financial strain is so severe councils are failing at their basic accounting duties, with many missing deadlines to file their accounts – a situation Mr Crompton described as a “slippery slope” for bodies “so close to financial sustainability”.

He argued spiralling demands are a symptom of a wider failure to shift spending to prevention. The auditor general said his recommendation for the Welsh Government to “embed prevention into the budget-setting process” had been rejected.

“It’s disappointing that it’s been rejected because it seems so fundamental,” said the auditor general, who added: “I don’t fully understand why.”

Councils’ evidence echoed this, stating while policy “increasingly references the importance of prevention, this is not often reflected” in funding. The WLGA said this has forced councils to cut non-statutory services such as leisure, transport and community facilities.

Mr Crompton’s warning about councils was part of a wider assessment that Wales’ entire model of public service delivery is “unsustainable on its current trajectory”.

Giving evidence on November 5, he told Senedd Members demand is “outstripping” funding and critical areas have been “hollowed out” after two decades of tight budgets.

Mr Crompton warned this “unsustainable” model was not unique to local government, with all seven health boards in Wales breaching their statutory duty to break even over three years. The finance committee heard the NHS is forecasting a £191m deficit this year.

 

News

Pembrokeshire MSs Meet Conservative Leader in Cardiff Bay

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Visit comes as campaigning steps up ahead of the Senedd elections on May 7

PEMBROKESHIRE Conservative Members of the Senedd were among those meeting Opposition leader Kemi Badenoch in Cardiff Bay on Friday, as political parties increase campaigning ahead of the Senedd elections.

Samuel Kurtz MS, Welsh Conservatives Group Chair, welcomed Ms Badenoch alongside Darren Millar MS and Conservative colleagues during her visit to the Senedd. Discussions focused on the party’s priorities for Wales, the economy, and the future of the United Kingdom.

With fewer than 100 days to go until polling day on May 7, the Welsh Conservatives said the visit formed part of their preparations for the election, with a focus on their “Fix Wales” campaign message.

Mr Kurtz, who is standing as a Conservative candidate for the new Ceredigion and Pembrokeshire constituency, was joined by fellow candidates Paul Davies MS, Claire George and Brian Murphy.

Following the Cardiff Bay visit, Mr Kurtz returned to Pembrokeshire to hold a public advice surgery at Lamphey Hall, where residents raised local issues and concerns despite heavy rain.

The Senedd election will take place on May 7.

 

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Community

50s women threaten legal action over pension compensation refusal

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Campaigners say government decision ‘irrational and unlawful’ as ministers defend position

WOMEN born in the 1950s are threatening a Judicial Review after the UK Government refused to introduce a compensation scheme for those affected by changes to the State Pension age.

Campaign groups representing thousands of women across Wales say the decision by the Secretary of State for Work and Pensions is “legally flawed and procedurally unsafe”, arguing that ministers have relied on incomplete evidence while ignoring long-standing claims of maladministration and discrimination.

But the UK Government maintains that, while mistakes were made in communication, there is insufficient evidence that most women suffered direct financial loss as a result.

The row centres on the long-running dispute over changes to the State Pension age, which saw the retirement age for women rise from sixty to sixty-six, bringing it into line with men. Many women say they were given little or no notice, leaving them unable to plan financially.

Ombudsman findings

In 2024, the Parliamentary and Health Service Ombudsman (PHSO) concluded that the Department for Work and Pensions (DWP) was guilty of maladministration in how it communicated the changes.

The Ombudsman recommended compensation, suggesting payments could range from £1,000 to nearly £3,000 depending on impact.

However, in December, Paymaster General Pat McFadden MP said the Government would not implement a blanket compensation scheme, arguing that evidence did not show widespread financial injustice directly caused by the communication failures.

Campaigners say that stance is wrong in law.

‘Not new evidence’

Groups including 1950s Women of Wales & Beyond, 50s Women United, and Pension Partners for Justice claim ministers relied on what they described as “new evidence” to justify rejecting compensation.

They argue the material had already been available for years and therefore provides “no lawful basis” to overturn the Ombudsman’s conclusions.

In a statement, a spokesperson said: “To accept maladministration while denying financial loss is internally inconsistent.

“The Department’s failure deprived women of the opportunity to make informed decisions about retirement. Many incurred real, quantifiable losses – from depleted savings to forced early retirement and reliance on benefits.”

Campaigners also claim key testimony from former DWP ministers was omitted from the Ombudsman investigation, and that evidence of discrimination was not fully considered.

They say relying on what they call an “incomplete and selective report” leaves the Government open to legal challenge.

Political pressure in Wales

The issue has also been raised in the Senedd.

Plaid Cymru Deputy Leader Delyth Jewell MS recently pressed Welsh ministers to back affected women and push for engagement with campaigners.

Organiser Jackie Gilderdale said many Welsh women feel excluded from discussions.

“This campaign is not a brand or a limited company – it is real women whose lives were turned upside down,” she said.

“We don’t want another court battle. We want dialogue and a political solution. But if the door remains closed, Judicial Review remains an option.”

A petition calling for structured mediation between government and representative groups has already gathered more than 34,000 signatures.

Government position

The UK Government has previously said that most women were aware of the changes and that modelling showed limited evidence of widespread direct financial loss caused solely by communication failures.

Ministers have also pointed to the overall cost of compensation, which could run into billions of pounds.

Public law experts note that while maladministration findings are serious, compensation is not automatic and governments retain discretion over how – or whether – to implement financial redress.

Long-running dispute

The dispute has been ongoing for more than a decade and has become one of the most persistent pension justice campaigns in the UK.

Women’s groups argue many lost up to six years of expected pension income, with some estimating personal losses of tens of thousands of pounds.

Successive governments, however, have resisted calls for mass compensation, saying equalising the pension age was necessary for fairness and sustainability of the system.

For many campaigners, the fight is far from over.

“We are not going away,” the groups said.

 

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Education

Funding axe falls on Welsh digital education scheme as £1.4m handed to English uni

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Face-to-face training replaced with online resources in decision branded a ‘slap in the face’ for Wales

A LONG-RUNNING Welsh digital education programme that has trained thousands of teachers and pupils every year is facing an uncertain future after Welsh Government funding was cut and redirected to an English university.

Technocamps, a Swansea University-based project which has operated across Wales for twenty-two years, has described the decision as a major blow to digital skills development, with staff already losing jobs and schools left without in-person support.

Instead of renewing Technocamps’ funding, ministers have awarded £1.4 million under the Curriculum for Wales Grant Support Programme to the University of York to deliver mainly online learning resources, with only limited face-to-face sessions in what are described as “priority areas”.

Critics say the move risks replacing hands-on, bilingual classroom support with generic remote materials.

Each year Technocamps provides direct training to more than 900 teachers and delivers workshops to over 30,000 young people in schools across Wales, working face-to-face with pupils to improve coding, computing and digital literacy.

The programme has been widely credited with helping schools meet the growing demands of the Curriculum for Wales and tackling shortages in specialist computing skills.

‘Bitter disappointment’

Plaid Cymru MS Sioned Williams, who represents South Wales West, said she had met the Technocamps team again this month and would be writing to the Cabinet Secretary for Education seeking answers.

She said: “The necessity of good quality, face-to-face digital skills training has never been more important in this digital age.

“I’ve seen firsthand how engaging and effective a Technocamps workshop is and what makes this programme so great is that it is made in Wales, delivered bilingually through our network of universities and is able to reach every school and teacher.

“That’s why the news that Welsh Government has cut funding is so bitterly disappointing.

“At a time when Welsh universities are in financial crisis, it’s an additional slap in the face that what little funding has been allocated has gone to a university in England.”

Jobs lost across Wales

Beti Williams MBE, the programme’s founder and patron, said the funding decision had already resulted in redundancies.

She said: “The end of Technocamps funding has led to the unemployment of teacher trainers at universities across Wales, leaving nearly 1,000 school teachers who rely on our bespoke in-person training and support in limbo.

“Replacing Technocamps with predominantly standard online courses is an insult to Welsh universities. Online courses, of which there is unlimited choice, offer nothing to struggling teachers who rely on tailored, face-to-face help.”

A petition calling for funding to be restored has gathered more than 4,000 signatures and is now being considered by the Senedd Petitions Committee.

Questions over value for money

The decision has also raised questions about value for money.

According to supporters, the £1.4m grant awarded to York is almost double Technocamps’ previous annual funding, yet delivers fewer in-person services.

There are also concerns that only seven per cent of the wider Curriculum for Wales grant funding over the next three years is allocated to science and technology subjects.

Education campaigners warn that reducing practical support in computing and digital technology could widen skills gaps at a time when Wales is trying to attract high-tech industries and improve economic productivity.

Digital divide fears

Teachers have long argued that in-person training is essential, particularly for schools with limited IT expertise or rural connectivity challenges.

Technocamps staff say online-only provision risks leaving some schools behind.

Ms Williams added: “It’s so important that we keep this crucial skills and knowledge in Wales. The thought that we could lose this valuable resource makes no sense at a time when the need for digital competency has never been greater.”

Welsh Government has been asked to explain why the funding was awarded outside Wales and whether the impact on Welsh university jobs and school support was assessed before the decision was made.

 

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