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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.

Business

Independent brewers join call for business rates relief as pub closures feared

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INDEPENDENT brewers have joined growing calls for urgent, pub-specific relief on Business Rates amid fears that community pubs across west Wales and beyond could be forced to close.

The Society of Independent Brewers and Associates (SIBA) has warned that changes announced in the Autumn Budget will see pub costs rise sharply over the next three years, with the average pub facing a 76% increase in Business Rates. By comparison, large warehouse-style premises operated by online and technology giants are expected to see increases of around 16%.

The issue will be discussed at a meeting taking place on Monday in Saundersfoot, where local publicans, small brewers and business representatives are due to come together to examine the impact of rising Business Rates and escalating operating costs. The meeting is expected to focus on the future sustainability of community pubs, particularly in coastal and rural areas where they often act as vital social hubs as well as key local employers.

Independent breweries are particularly exposed, SIBA says, as the vast majority of their beer is sold through local community pubs. Many small breweries also operate their own pubs or taprooms, meaning they are hit twice by rising rates. Some independent brewers have reported rateable value increases of up to 300%, creating new costs they say will be extremely difficult to absorb.

New industry research published on Thursday (Dec 12) suggests that introducing a pub-specific Business Rates relief of 30% from April 1, 2026 could protect around 15,000 jobs currently under threat in the pubs sector and help prevent widespread closures.

The call for action follows an open letter sent last week by SIBA’s board, expressing deep concern at the impact of the Budget’s Business Rates decisions on the hospitality sector.

Andy Slee, Chief Executive of SIBA, said: “The last orders bell is ringing very loudly in our community pubs after the shock changes to Business Rates in the Budget.

“Publicans and brewers feel badly let down by a system that still isn’t fairly addressing the imbalance between big global tech companies and small business owners.

“We were promised proper reform of Business Rates in the Labour manifesto last year and a rebalancing of the tax regime, but this has not been delivered. Pubs therefore need urgent help to address the planned increase in costs through a pub-specific relief, followed by full and meaningful reform.”

Those attending Monday’s meeting in Saundersfoot are expected to consider how local voices can feed into the national debate and press for urgent action to protect community pubs across Pembrokeshire.

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Community

Annual charity carol service raises funds for good causes

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MID and West Wales Fire and Rescue Service held its annual Charity Carol Service on Wednesday (Dec 10) at Ebeneser Baptist Chapel in Crymych.

The event brought together members of the local community alongside Fire Service staff for an evening of carols, readings and festive refreshments, marking the Christmas season in a warm and inclusive atmosphere.

This year’s service supported two important charities — the Fire Fighters Charity and Cancer Research Wales — with all proceeds going directly towards their ongoing work.

A total of £597 was raised on the night, which will be shared equally between the two charities.

The Service thanked the congregation at Ebeneser Baptist Chapel for hosting the event, as well as everyone who gave their time, support and generosity to make the evening such a success.

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Local Government

Call for Return of Salt Tip in North Pembrokeshire to Improve Winter Road Safety

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A PROPOSAL for the reinstatement of a salt tip in North Pembrokeshire to improve road safety during snowy and icy conditions has been put forward by local councillor Huw Murphy.

At the December meeting of Pembrokeshire County Council, Cllr Murphy called for a review of the council’s current weather strategy, highlighting the need for an auxiliary salt tip in the north of the county. His motion, which was supported by senior councillors, aims to address the challenges faced by motorists during severe winter weather.

Cllr Murphy’s motion emphasized the importance of having a reserve salt tip available to ensure primary routes remain clear and accessible during snow and ice conditions. This would allow emergency services to respond to calls, key workers to reach their workplaces, and essential vehicles like HGVs to access farms for activities such as milk collection.

Historically, a salt tip was located near Crymych, which proved invaluable for gritting roads, particularly the A478 between Crymych and Cardigan, and between Crymych and Clunderwen. These roads, often treacherous during snowy weather, have caused difficulties for HGVs, coaches, and school buses in the past.

The proposal stresses that a new salt tip in Pembrokeshire would allow for quicker and more regular gritting, making roads safer for all users, especially during the harshest winter conditions. Cllr Murphy also highlighted that recent heavy snowfall exposed weaknesses in the current gritting strategy, particularly in the northeast of Pembrokeshire and the Preseli Mountains, which are most prone to severe weather.

The motion also called for prompt gritting and the deployment of snow ploughs on key routes, including the A478, A487, B4332, and B4329, which are vital for the local communities in the northeast and Preseli areas.

The county council’s Cabinet will now consider Cllr Murphy’s motion for further review.

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