1. Will the First Minister make a statement on funding the increase in teacher pension contributions? OAQ52895

I share the concerns of others in the public sector that the proposed changes to public sector pension schemes risk diverting further funding from front-line services. The UK Government is responsible for these changes and we have made it clear that they must fund the increase in pension contributions.

Can I thank the First Minister for that answer? The cost of funding the increase in the employer teacher pension contributions follows the decision of Westminster to implement cost capping, and this will fall mainly on school budgets. Unless money comes from Westminster—and there may be money from Westminster—will the First Minister commit that any money that comes as a consequential of the additional money for schools in England to cover the pensions will actually be given to schools in Wales?

Well, we have already made it clear that local authorities are first in the queue, although there is a queue in terms of funding, but that depends on whether we do get consequentials. What is not fair, nor is it right, is a situation to arise where the UK Government imposes extra costs on local authorities that the Welsh Government is then expected to fund. That clearly can't be right. So, where costs are imposed by Government, we have an agreement with local authorities where we say that any new costs will be funded. The UK Government needs to do the same. 

Well, of course, local authorities complain all the time that they're asked to make spending decisions based on decisions made here that aren't followed up by money. And if the Welsh Local Government Association is right on this one, we'll have far fewer teachers building up pensions rights anyway as a result of the cash cuts to both local government and the education budgets in the recent budget announcement.

Last week, we heard from the leader of Bridgend council about the cuts he was planning on making to services following the Welsh Government draft budget, and this week we have Swansea council's leader—both of these Labour, of course—saying that he's going to be making cuts to his schools budget due to the settlement from Welsh Government. The Chancellor's budget allocates three years' worth of funding. So, in your final weeks as First Minister, will you use some of that additional money to give local authority leaders in Wales the money they need to fund schools and staff?

The Chancellor's funding decision does not give us three years of funding, nor is it anything like the figure that he suggested of £555 million. In fact, we estimate it's around about £50 million or £60 million of revenue in this year, and £2.6 million in capital. So, a great deal of spin has gone into that announcement. What I can say is, having spoken to the leader of Bridgend, and spoken to the leader of Swansea, is, yes, they face difficult decisions and we're looking to help them, but they are absolutely clear that those decisions they face are as a result of the austerity imposed by a Tory Government in London. 

It’s clear that the uncertainty around these pension payments is creating great problems at a grass-roots level, and it’s not clear at all what the mechanism will be for providing the additional funding. What discussions are you having, therefore, with the Treasury, with your Members of Parliament in Westminster and, indeed, with the teaching unions about this problem?

We, along with Scotland, have written to call for changes in teachers’ pensions, and that should be funded from the UK Government. It’s they who have created this situation, and the same is true in Scotland, as I understand it, and so we have written jointly to say, ‘You have insisted on imposing this additional cost on local authorities, therefore you should fund it’.