Social care, childcare and local councils are set to benefit from
more than £100m in extra funding secured through a budget
agreement.
The details of the agreement, between the Welsh Government and
MS, Leader of the Welsh Liberal
Democrats, can be revealed today (20 February) as the Welsh
Government publishes its Final Budget 2025-26 in the Senedd.
Key elements of the budget agreement include:
- An extra £30m for childcare, which will ensure funding for
the Flying Start programme to deliver childcare to two-year-olds
across Wales. The hourly rate will also be increased to £6.40 an
hour to further support childcare providers.
- £30m more for social care to target delayed hospital
discharges and provide more care and support in local communities
to prevent people being admitted to hospital unnecessarily.
- A guaranteed 3.8% funding floor for all local authorities,
costing £8.24m. This will increase funding available to nine
local authorities – Monmouthshire, Powys, Gwynedd, Vale of
Glamorgan, Flintshire, Pembrokeshire, Ynys Mon Ceredigion and
Conwy.
The agreement includes a commitment to move to ban greyhound
racing in Wales.
And it includes further funding for local government:
- £5m to improve playgrounds and play facilities for
children.
- An extra £5m to support leisure centres to be more energy
efficient.
For transport:
- £15m to fund a pilot scheme for young people aged 21 and
under to pay only £1 for a single bus fare in Wales.
- Extra support to create a £120m local authority road and
pavement repair scheme.
- Funding to restore the fifth train service on the Heart of
Wales line.
- £500,000 capital funding to improve toilets on main roads
across Wales.
For environment and rural affairs:
- £5m extra to tackle water pollution in our rivers and seas.
- An extra £10m for rural investment schemes.
The agreement also includes funding for feasibility studies to
support the development of the Wyeside Arts Centre, in Builth
Wells; the North Powys Wellbeing Campus, in Newtown; safety
measures at the Pont y Bat junction on the A470 and the
refurbishment of Brynamman Lido.
Cabinet Secretary for Finance
said:
“This agreement demonstrates what can be achieved when the Welsh
Government and Members of the Senedd work together constructively
on areas where we have common ground. The additional investment
will make a real difference to communities across Wales,
particularly in rural areas.
“Taken together with the extra £1.5bn announced in our Draft
Budget, this is a positive package of additional funding for
every part of Wales, which will have a significant impact on our
public services.”
MS, Leader of the Welsh Liberal
Democrats, said:
“This agreement is a positive step in making Wales the fairer and
more prosperous country I want it to be.
“I'm delighted we have secured funds needed to deliver my party's
key priorities of improving social care, increasing quality
childcare, tackling water pollution, improving roads and public
transport and protecting vital council run services.
“I'm really pleased the Welsh Government is taking this step to
offer universal free childcare to families with children aged two
to four across Wales. This is important to tackle child poverty
and to help parents get in to work to help with the
cost-of-living crisis.”
Notes to editors
https://www.gov.wales/final-budget-2025-2026
