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Tesco’s new deal: Good or bad?

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PH100616_Page_06_Image_0001TESCO, who have 2,620 stores throughout the UK and 14 within the Herald’s coverage area, are to slash wages for many employees by the time they receive their next pay cheques, which is hidden by a blanket increase to wages nationally, staff say.

The Herald was contacted by a current employee of the retail giant who found out about the cuts earlier this year after working for the company over the last two decades.

They explained that although across the board staff are to receive very slightly higher wages, those who work unsociable hours and Sunday shifts will be detrimentally effected.

THE CUTS

The cuts will come in the form of bonus reductions; staff will no longer receive double time for Sundays and Bank Holidays, and those working night shifts and overtime hours will no longer receive the same increases, with some staff claiming they’ve been told overtime will be paid at the standard hourly rate.

On Sundays and Bank Holidays, the formerly doubled pay will be reduced to just time and a half, a reduction of 25%.

The employee who contacted The Herald notified us that they thought the increases to staff wages were only being implemented to mask the reductions which the retailer is making, to allow the national media to hide that staff are going to suffer from the changes.

THE INCREASE

Nearly a quarter of a million Tesco store staff will receive a 3.1% increase in basic pay this year under a new ‘deal’ that includes the cuts to holiday and night-time bonuses.

Established staff at Tesco will qualify for the increase and will get £7.62 an hour starting from July, some 42p over the £7.20 minimum wage for over-25s.

New employees to the company will see their pay rise £7.20 to £7.24 in July, which was increased from £7.04 to fall in-line with the national minimum earlier this year.

SOFTEN THE BLOW WITH A PAY-OUT

The Herald was told that as a sweetener, employees who were to be most affected by the bonus changes would be receiving a sum of money to make up the difference for a short period of time.

We were told that compared with the length of time they and others had been at the company and how long they intended to stay, the payment for the short period was not good enough.

Tesco have said that 85% of staff would be better off under the pay deal and that those who had been negatively affected would be handed a lump-sum payment worth 18-months of the difference in pay.

HOW DOES THE RETAILER’S PAY COMPARE?

Online statistics show that Tesco’s pay increase will put them above Sainsbury’s and Asda who currently pay national minimum wage (£7.20), but compared with companies like Lidl, Aldi and Morrison’s all of whom offer around £8/hour, the retailer falls short.

Matt Davies, the chief executive of Tesco in the UK and the Republic of Ireland, said: “We’ve spent a lot of time working with [trade union] Usdaw and colleague representatives to understand what’s important to colleagues.

“Together, we have agreed one of the highest pay and benefits packages in retail for store colleagues, and introduced a simpler and fairer pay structure, including one approach to premium payments.

“As well as an increase in pay, which puts our hourly rate well above the government’s national living wage, we remain absolutely committed to rewarding our colleagues with a pay and benefits package they really value, including a pension, colleague discount and 5% turnaround bonus.”

Pauline Foulkes, a national officer at Usdaw, said the total package for Tesco staff, including a 5% turnaround bonus that employees are on track to receive this year, was well ahead of the living wage and was one of the best in retail: “We believe the deal is the best that could be achieved in the circumstances and represents a significant investment in pay and benefits.”

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Farming

Basic Payment Scheme 2025 balance paid to 95% of Welsh farmers

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Final year of BPS as transition to Sustainable Farming Scheme begins

The WELSH Government says more than ninety-five per cent of farm businesses have now received their full or balance payment under the final year of the Basic Payment Scheme (BPS), ahead of the introduction of the new Sustainable Farming Scheme (SFS) in 2026.

Announcing the update on Friday (Dec 12), Deputy First Minister and Cabinet Secretary for Climate Change and Rural Affairs, Huw Irranca-Davies, confirmed that over 15,400 Welsh farm businesses have been paid £68.7m. This comes on top of the £160m issued in BPS advance payments since 14 October.

Final round of BPS payments

The Basic Payment Scheme, which has been the backbone of farm support in Wales for a decade, provides direct income support to help farmers plan and manage their businesses. BPS 2025 marks the last year in which full BPS payments will be made before the scheme begins to be phased out.

The Cabinet Secretary said officials would “continue to process the outstanding BPS 2025 claims as soon as possible,” adding that all but the most complex cases should be completed by 30 June 2026.

Payments issued today represent the main balance due to farmers following earlier advances, giving many businesses the cash flow they need during the quieter winter period—traditionally a challenging time in the agricultural calendar.

Shift to Sustainable Farming Scheme in 2026

From 1 January 2026, the Welsh Government will begin rolling out the Sustainable Farming Scheme, a major reform to how agricultural support is delivered. The SFS will reward farmers for environmental outcomes such as habitat management, carbon reduction and biodiversity improvements, alongside continued food production.

The government has argued that the new scheme is essential to meeting Wales’ climate and nature targets while ensuring long-term resilience in the sector. However, the transition has been closely watched by farming unions, who have raised concerns about the administrative burden, income stability, and the speed at which BPS is being phased out.

Mr Irranca-Davies reaffirmed the government’s stance, saying: “This government is steadfastly committed to supporting Welsh farmers to sustainably produce quality food. This is demonstrated today in our payment of the BPS 2025 balance payments and will continue throughout the transition period.”

Sector reaction

Farming unions are expected to scrutinise the detail of today’s announcement, particularly around remaining unpaid cases. Last year, late payments led to frustration in parts of the sector, with unions calling for greater certainty as the industry faces rising input costs, supply chain pressures and continued market volatility.

The move to the SFS remains one of the most significant agricultural policy changes in Wales since devolution. Ministers insist the shift is designed to support both food production and environmental stewardship, while critics warn the transition must not undermine farm viability—especially for family-run livestock farms that dominate rural areas such as Pembrokeshire, Ceredigion and Carmarthenshire.

What happens next

Farmers still awaiting their BPS 2025 balance will continue to be processed “as soon as possible”, the Welsh Government said. Officials will also publish updated guidance on the Sustainable Farming Scheme ahead of its launch.

The coming year will therefore become a pivotal moment for Welsh agriculture, as the long-standing BPS framework—which provided over £200m annually to Welsh farmers—makes way for a new results-based model that will shape the industry for decades to come.

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News

Improved train timetable launches across Wales

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Extra services, later trains and boosted Sunday routes as £800m rail investment takes effect

An improved train timetable has come into force across Wales today (Sunday, 14 December), with Transport for Wales (TfW) introducing more frequent services, stronger connections and additional late-night trains on key routes.

The winter timetable update brings one of the most substantial uplifts in recent years on the Wales and Borders network, forming part of the Welsh Government’s ongoing £800 million investment in brand-new rolling stock and reliability improvements.

More trains and later journeys

Among the upgrades, passengers will see:

  • A new hourly additional service between Chester and Wrexham, effectively doubling the frequency on one of the region’s busiest commuter corridors.
  • An extra train in each direction every day on the Heart of Wales line between Swansea and Shrewsbury.
  • Three later last trains from Cardiff to Treherbert, Aberdare and Merthyr Tydfil, supporting shift workers and the night-time economy.
  • A new hourly Sunday service on the Coryton line in Cardiff.

Cabinet Secretary for Transport and North Wales, Ken Skates, said improved connectivity was “absolutely vital” for economic growth and passenger confidence.

“These changes will make a real difference to customers, who will benefit from more services and greater connectivity,” he said. “This has been made possible by our £800m investment in brand-new trains for the Wales and Borders network.

“We will see the doubling of trains between Wrexham and Chester and a later service from the capital to valley communities. In South Wales, people will continue to benefit from simpler, fairer fares through TfW’s Pay As You Go service, and its forthcoming introduction in North Wales will help even more passengers access easy, transparent pricing.”

Full details of the updated timetable are available at: tfw.wales/service-status/timetables

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Wrecked guard boat still under watch off north Pembrokeshire coast

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Tidal changes monitored after dramatic early-morning rescue

A GUARD VESSEL that ran aground off the north Pembrokeshire coast in the early hours of Thursday morning (Dec 11) remains under close observation as tides continue to shift.

The Resolute, a 24-metre guard boat understood to be working for an offshore wind project off the Irish coast, had been sheltering in worsening weather when she was pushed onto rocks near Aber Hywel, Dinas, shortly after 3:25am.

Four crew members were onboard when the vessel grounded in rough seas and a strong southerly wind.

Major rescue effort launched

The crew issued an emergency alert, prompting a full multi-agency response.
A coastguard rescue helicopter, both Fishguard RNLI lifeboats, and coastguard teams from Fishguard and St Davids were sent to the scene.

Turbulent air made a winch rescue impossible and Fishguard’s all-weather lifeboat was unable to get close due to cliffs and submerged hazards. The inshore lifeboat was instead deployed to attempt a transfer in extremely challenging conditions.

During the evacuation, the third crew member descending to the vessel’s life raft slipped, fell into the water and was swept away. Speaking afterwards, RNLI crew member Cedwyn Rogers said the team immediately switched into “hyper-focused” mode as training took over.

Despite the casualty drifting, helm Warren Bean — a volunteer with more than 30 years’ RNLI experience — manoeuvred the lifeboat alongside, allowing crew to haul the man to safety. The remaining crew member was then retrieved, and all four were taken aboard the all-weather lifeboat and brought ashore to Fishguard.

All rescue units were later stood down.

Vessel still stranded and taking on water

The Herald understands that the Resolute remained aground on the rocks yesterday and was taking on water. The crew were later assisted back onboard by a local fisherman to assess damage on behalf of the vessel’s operators.

Management representatives from Ireland were due to arrive to draw up a recovery plan, including arrangements to remove fuel to prevent any potential environmental impact.

Further inspections have been taking place today as the team evaluates the next steps.

Coastguard statement

A spokesperson for HM Coastguard said: “At 3.28am on Thursday morning, HM Coastguard was made aware of a vessel with four persons onboard aground on rocks at Fishguard, Pembrokeshire. RNLI lifeboats and coastguard rescue teams from Fishguard and St Davids were sent to the scene. The four people aboard were rescued by lifeboat, and the helicopter was stood down. The vessel, which is still aground, is being monitored as tidal conditions change.”

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