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.”

A SENEDD member warned Wales faces a watershed moment for culture as the Welsh Parliament debated cuts at the Royal Welsh College of Music and Drama.

Rhianon Passmore led a Senedd debate on a 10,560-name petition against the RWCMD’s decision to cut junior programmes which were established 25 years ago.

The Labour backbencher, who represents Islwyn, said the petitions committee is extremely concerned about the impact of funding cuts on the pipeline for talented musicians.

Ms Passmore, who has been chairing the committee temporarily, warned: “This would leave Welsh children at a profound disadvantage to their English and Scottish counterparts.”

She told the Senedd the scaling back of youth services is a “hugely significant blow” to the college’s ability to support learners from poorer backgrounds.

Ms Passmore, a former music teacher who is chair of the cross-party group on music, pointed out that the Welsh Government’s draft budget will be published in December.

She said: “How we minimise the impact of funding cuts on our cultural institutions in the current economic climate is a critical issue for Wales and for our young people.”

The Islwyn MS welcomed the Welsh Government’s “encouraging” announcement of an additional £5m for culture and arm’s-length bodies such as the Arts Council of Wales.

But Ms Passmore warned: “The economic impact of stifling music development and the nurturing of our young people’s musical talent is of grave concern.”

She added: “Unless the Welsh Government steps in to safeguard institutions like the RWCMD, then we are at a watershed moment in the regression of Welsh cultural life.

“This is without the devastating reduction of Welsh National Opera to a part-time outfit.”

Peter Fox, a Conservative member of the petitions committee, warned the cuts will result in 112 staff losing their jobs and a loss of 400 students.

He said: “This will be an incredibly damaging blow to the arts scene … and threatens the future of an important part of our future cultural offer.

“It is a jewel in the crown we should be proud of and we should look to preserve.

“Sometimes, things aren’t always about money – they’re about social value and the importance that these things bring.”

Mr Fox, who represents Monmouth, said about 50% of students received bursaries, with many paying minimal or no fees.

He warned that many talented young musicians will find accessing training unaffordable, saying the cuts will have an incredibly detrimental impact.

Heledd Fychan, Plaid Cymru’s shadow culture secretary, recognised the “huge” financial pressure on the RWCMD which faced a 6% cut in public funding this year.

She said: “They need to make 10% spending savings this year, which corresponds to £1.5m and closing the provision that we’re addressing today contributes 16% of the 10% needed.”

Ms Fychan cautioned that a generation of the most talented young Welsh artists have been disenfranchised and “reduced to an elite few who can afford private tuition”.

Julie Morgan, the Labour MS for Cardiff North, visited the RWCMD during the consultation.

“It was actually heartbreaking, particularly on the last day…,” she said. ”People didn’t know what other opportunities there would be. They didn’t have anywhere to go….

“It just seemed so awful that this was happening here in Wales and that this was happening to something that was so important for the hopes and the future of our young people.”

Ms Morgan, a former minister and MP, told the chamber alternative proposals were put forward but were not seriously considered by the college.

She added: “The other point is that children were taught in Welsh and in English, which was the only facility that offered this. So, it just makes you think: why on earth did this happen?”

The Conservatives’ Tom Giffard, who represents South Wales West, pointed out that culture bore the brunt of cuts in this year’s Welsh Government budget.

He said: “We can talk all the warm words we like about the importance of the junior academy, but without putting the funding in place to support it, unfortunately the Welsh Government has practically condemned it to close.”

Rhys ab Owen, an independent member of the petitions committee, said he has received countless letters from concerned constituents.

The South Wales Central MS said: “We can boast as much as we like that Wales is the land of song but it doesn’t happen in a vacuum.

“The accolade is meaningless if we just rely on the glory of the past because that’s what will happen, if schools like this and musical services are continuing to be depleted…. Wales will be less musical, not more musical than other nations, if we continue down this road.”

Jenny Rathbone, the Labour MS for Cardiff Central, said it was a tragedy that the debate took place after the decision to close the junior department had already been made.

“In a sense, it’s an affront to all the people who bothered to sign the petition that the Royal Welsh College wasn’t prepared to wait and see what solutions could be arrived at,” she said.

“I’ve no doubt that change was needed and was inevitable because of the financial circumstances but I feel hugely disappointed that this decision was rushed ahead.”

Vikki Howells, who was appointed further and higher education minister last week, responded to the debate on September 18 on behalf of the Welsh Government.

She recognised the strength of feeling and financial challenges as she pledged to continue talks with the college as it shapes proposals for future provision.

Ms Howells pointed to the Welsh Government’s national plan for music education, saying key partners will provide support and signposting to talented young musicians.

The junior minister told the chamber the national music service has received significant investment, totalling £13m from 2022-25.

She stressed that it is not the role of ministers to intervene in the operational detail nor routine financial management of institutions.

“These decisions are clearly a matter for the college,” she said.

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.”