WALES’ new finance secretary insisted inflation-busting pay rises for teachers, doctors and nurses will not lead to a reduction in spending on public services.

Mark Drakeford, who was named finance secretary last week, said the Welsh Government worked through the summer to ensure funding is in place to support pay awards.

He told the Senedd: “As a result of all that work, we are confident we can fund these awards without the need to reduce spending in these or other public services.”

In a statement on September 17, the ex-First Minister said teachers will receive 5.5% with an extra £5m to move additional learning needs co-ordinators to a leadership pay range.

He explained that doctors and nurses on ‘Agenda for Change’ terms will also receive 5.5% while NHS-employed doctors and dentists will receive 6%.

Prof Drakeford added that ministers have agreed an average 5% increase to the total pay bill for staff in the Welsh Government civil service and arm’s-length bodies.

He said: “Taken together, this means that over 180,000 public sector workers – from hospital cleaners to teachers and civil servants – will receive an above-inflation pay award this year.”

But the finance secretary, who previously held the role from 2016 until 2018 when he became First Minister, cautioned that the financial climate remains challenging.

“Difficult decisions will once again shape next year’s budget,” he said.

“However, making this decision now, giving certainty to public sector employers and, crucially, those who work in our public services, means that increases will be reflected in pay packets as soon as possible, and before the end of this year at the latest.”

The Welsh Government will publish its draft 2025/26 spending plans on December 10.

Peter Fox, the Conservatives’ shadow finance secretary, welcomed some pay increases, saying they will go some way to improving retention rates in health and education.

But he raised concerns about public pay as a whole in his response to the statement.

Mr Fox, who represents Monmouth, said: “We must be careful that both this government and the one in Westminster do not lose control of public pay.

“The Labour government in Westminster has offered almost £10,000 pay rises to train drivers, who are already on more than £60,000 a year, while taking much-needed fuel payments from our pensioners.

“I’m glad that you are confident that, unlike your colleagues in Westminster, you do not feel as if you have to cut services for this round of pay rises. That’s welcome.

“However, as you indicate, there could be more public sector rises to come.

“With this in mind, what reassurances can you give the people of Wales that these future pay rises are not going to come at the expense of the most vulnerable people in society?”

His Plaid Cymru counterpart Heledd Fychan broadly welcomed the pay rises as she called for an update on local government staff who are not part of the latest settlement.

But she warned: “The fact that the Labour government in Westminster is as committed, it would appear, to austerity as their Conservative predecessors is deeply concerning.”

Ms Fychan said anything less than pay restoration to pre-austerity levels would point to empty promises in terms of the benefits of Labour governments at both ends of the M4.

The South Wales Central MS stressed that pay alone will not solve all the problems facing the workforce, nor resolve difficulties recruiting and retaining staff.

She said: “Although pay was a factor in the industrial action we have seen, it is important that we also acknowledge that staff have also decided to take action because of their concerns about working conditions.”

Carolyn Thomas, a Labour backbencher, who represents North Wales, welcomed the uplift in public sector pay, asking about the social care and childcare sectors.

Prof Drakeford pointed to Welsh Government funding to ensure social care workers are paid the real living wage and committed to working closely with councils on childcare.

He said: “There are other groups of workers in the public sector who we know do not get the recognition, both in public esteem and in pay, for the value of the work that they do.”

Plaid Cymru’s Peredur Owen Griffiths asked about people employed by charities, such as nurses in hospices who benchmark against public sector pay awards.

Prof Drakeford told the finance committee chair: “We recognise that deals that are set in the direct public service have knock-on implications for the third sector.

“We have a range of ways in which we are able to navigate that.”

MORE than half (53%) of school leaders in Wales are predicting a budget deficit this academic year amid a financial crisis which is forcing many to cut services and staff including teachers. 

The bleak finding – nearly double the 29% who reported a deficit last year – comes after school leaders’ union NAHT Cymru surveyed its members on funding. More than a quarter (27%) said they were predicting a deficit for the first time ever in 2024/25. Every single one said they did not receive sufficient funding to meet the needs of all their pupils fully. 

NAHT’s report – Falling Short: The Deepening School Funding Crisis in Wales – found school leaders are having to take drastic action. 

More than a quarter (28%) are reducing the number or hours of teachers, nearly six in ten (59%) are leaving posts empty, and 55% are reducing teaching assistant hours. 

Compared with 2021, when NAHT asked school leaders similar questions, they are now around twice as likely to have to be taking these measures. 

Other cuts include delaying repairs, refurbishment, or general capital spending (45% of school leaders), reducing non-educational support and services for children – such as educational psychologists, behaviour support, social workers, and school liaison officers (29%), reducing or changing the curriculum offer(15%) and not investing in staff professional development and training (52%).  

Only three per cent said they didn’t need to make savings, compared to a fifth three years ago. 

The survey shows a range of issues are conspiring to fuel the funding crisis, all of which have worsened over the last three years – from support for pupils with additional learning needs, cited by 88% of school leaders, to inflation and increased salaries (55%), supply cover 52%) and changes to local funding formulae (25%).  

Nearly three in ten (29%) blamed expenses incurred due to inaccessible or insufficient local authority school services. Separately, almost eight in 10 (79%) reported an increase in parents or carers seeking help due to the cost of living, and close to half (48%) highlighted support for pupils whose mental health had deteriorated. 

Laura Doel, national secretary of NAHT Cymru, said: “School leaders simply cannot go on doing more with less. They didn’t sign up to this job to set deficit budgets, cut spending on pupils and lay off teachers and support staff. In the three years since our last survey, the change for the worse is alarming. 

“We were shocked that school funding didn’t feature in the first minister’s priority list when she set out her plans for government earlier this week.  

“Schools need more resources to allow them focus on driving up standards rather than firefighting increasingly worrying holes in their budgets. 

“At the moment, schools and local authorities in Wales are facing really unpalatable choices and we need to work together not only to argue for proper funding but also to identify sustainable, innovative solutions to this crisis.” 

NAHT Cymru says the Welsh Government’s ongoing review aimed at replacing the 22 different local authority funding formulae with one coherent system must end the postcode lottery around how much individual schools receive and ensure greater transparency around funding. 

Chris Parry, president of NAHT Cymru said: “This report highlights the severe impact of financial shortfalls on schools across Wales. School leaders are caught between a rock and a hard place, being forced to cut staff, reduce support services, and compromise essential learning resources simply to stay afloat.  

“These findings should serve as a wake-up call for the Welsh Government about the need for immediate action. The funding crisis threatens the quality of education, and without a clear, strategic response, schools will be unable to provide the support that pupils and staff need. A long-term solution is essential.” 

Paul Whiteman, general secretary at school leaders’ union NAHT, said: “These truly dire findings should set alarm bells ringing for everyone with a stake in children’s education – from parents and carers to local and national politicians.

“Dedicated school leaders struggling with fewer resources amid mounting costs and pressures are at their wits end as they try to maintain a high-quality education for pupils while being forced into completely unpalatable cuts. 

“It is simple not sustainable and is putting educational outcomes at risk – not just for disadvantaged pupils who need the most help, but across the board. Something has to give.” 

THE SPARC Alliance recently hosted an information day at RWE’s Pembroke Net Zero Centre (PNZC), inviting nine secondary school teachers to learn about the latest green technology developments in Pembrokeshire.

Members including RWE, Blue Gem Wind, Floventis (Cierco Energy), Port of Milford Haven, Ledwood Engineering, ERM, and Morgan Sindall Construction delivered presentations on Green Hydrogen, Ports, Floating Offshore Wind, Engineering, and Sustainable Construction. Newly appointed Patron, CEO Luciana Ciubotariu, Celtic Freeport, spent the day with the teachers and toured the impressive PNZC site.

Ben Williams and Dr Mark Picton from RWE jointly commented, “The day aimed to equip the newly appointed SPARC Practitioners with knowledge about Net Zero’s positive impact in Pembrokeshire, the evolving job market, and future prospects — highlighting the potential rise in high-value technical jobs across the region”.

STEM teachers among the SPARC Practitioners welcomed the opportunity to enhance their knowledge, intending to integrate local Net Zero advancements into their classrooms. This initiative aims to inspire young female learners to consider careers in sustainable power, renewables, and construction — fields they might not have otherwise explored.

The SPARC Practitioners receive support from the Alliance’s full membership and a Schools/Industry Liaison, Holly Skyrme of Marine Energy Wales and Pembrokeshire College. Industry engagement is a crucial component to complement classroom learning, encouraging young female participation.

Starting in September, the SPARC Alliance programme offers bite-sized learning and careers education for 12–14-year-olds. The ‘Project Influencer’ unit culminates in an inter-school competition and prize-giving event next July ‘25. Additionally, the Alliance, which includes Pembrokeshire College, plan to launch a mentoring programme for post-16 females as part of the initiative.

For more information about the SPARC Alliance, please contact: [email protected]