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Social care crisis reveals urgent need for funding reform

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INCREASING demand, flatlining budgets, and systemic neglect are pushing adult social care to the brink—especially in rural areas like Pembrokeshire.

Across Wales and England, councils are sounding the alarm: local government funding is no longer sufficient to sustain social care services without sacrificing other essential provisions. Pembrokeshire, facing one of the steepest funding gaps in Wales, is at the sharp end of the crisis.

Mounting pressures on councils

In Wales alone, councils identified £106 million in in-year pressures for adult social care in 2024–25, with a further £223 million forecasted—amounting to 40% of all local government funding pressures. An ageing population and increasingly complex care needs are driving costs ever higher. National projections suggest that by 2037, spending on community care services for older people will have risen by 177%.

Pembrokeshire is particularly exposed. The county’s demographic profile, combined with historic underfunding, leaves it struggling to meet rising demand. The gap between the actual cost of providing care and the budget allocated to pay for it is one of the widest in Wales.

When social care costs exceed budget forecasts, councils are left with stark choices: cut other services, lay off staff, or dip into reserves. Pembrokeshire County Council has established a reserve fund to tackle in-year pressures—but this is a temporary fix, not a long-term solution.

The consequences are already visible. Day-care closures, reductions in library and leisure funding, and hiring freezes have all taken their toll. County Hall, once a hub of local services, is now a ghost of its former self.

Care homes under strain

While councils administer social care budgets, most care home services in Pembrokeshire are delivered by private providers—businesses that must remain profitable to survive. Yet the rates they receive vary wildly between counties. Pembrokeshire pays higher rates than its neighbours, but even this is not enough to guarantee stability.

Care homes face rising costs, particularly from increases to National Insurance and the Real Living Wage. One local group running six care homes reports a £150,000 annual cost increase due to these changes. This raises the risk of closures and forces families to shoulder top-up fees.

Smaller, independent care homes—of which Pembrokeshire has many—are particularly vulnerable. Without urgent intervention, some may shut their doors for good.

Chronic staff shortages

Recruiting and retaining staff in rural areas is another serious challenge. Pembrokeshire’s geography and limited transport infrastructure make it harder to attract qualified care workers. The result is high workloads, stress, and burnout for existing staff.

Domiciliary care services are especially strained. Community providers such as Community Interest Care CIC rely heavily on overseas staff, as many local residents are unwilling or unable to take up care work. The reasons are clear: physically demanding roles, unsocial hours, and poor pay compared to less stressful jobs.

According to Care Inspectorate Wales, nearly a quarter of social care workers are experiencing financial hardship, and a significant number are dissatisfied with their pay.

The burden of unpaid care

The crisis extends beyond formal care. Research from Carers Week shows that 23% of Welsh adults—around 584,000 people—now provide unpaid care to family or friends, the highest proportion in the UK. In total, unpaid care in Wales is estimated to be worth £8.1 billion annually.

This hidden workforce provides 96% of all care, often at enormous personal cost. Nearly half of unpaid carers have given up paid work, while many more have cut back on food, heating, or transport to make ends meet. Over half say they cannot manage monthly expenses, and a growing number are turning to foodbanks.

Yet the Welsh and UK governments continue to rely on unpaid carers as a cornerstone of their care strategy, offering minimal financial support in return. While small-scale grants exist, access is limited and the process is often confusing and burdensome.

A system in denial

The situation lays bare two urgent and interlinked policy failures: the outdated model of local government finance and the fragmented, underfunded system of social care provision.

Councils are being asked to deliver 21st-century care with 20th-century funding tools. Piecemeal reform—pilot schemes, short-term pots of money, and local fixes—cannot address the scale of the challenge.

Comprehensive reform is needed, but political appetite is lacking. Promised reviews of local government funding remain stalled, while plans to better integrate health and social care remain vague and underfunded. The idea of a national care service has merit, but no roadmap exists—nor any clarity on how such a service would be paid for.

The uncomfortable truth is that as people live longer, often with complex conditions, the cost of care will only increase. Without bold action and honest debate—on taxation, on responsibilities, and on priorities—the crisis in social care will deepen.

And in places like Pembrokeshire, the cracks are already wide open.

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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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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News

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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