1. What discussions has the Minister had regarding funding allocations to the education portfolio? OAQ54345

I regularly meet with my ministerial colleagues to discuss a range of financial matters across all portfolios. As part of the draft budget process, I will be holding a further round of budget bilaterals, including with the Minister for Education, this month.

Thank you, Minister. You'll be aware that the Children, Young People and Education Committee has raised serious concerns about the sufficiency of school funding in our recent report of our inquiry into school funding. I was delighted that the Welsh Government accepted every one of our recommendations. I also note the very significant amount of extra money that was invested in schools in the recent spending review. In view of those very significant pressures on funding in schools, and the major reforms that are under way in our education system, what assurance can you give that investing in the future of our children and young people will be a top priority for you in the forthcoming budget round?

I thank Lynne Neagle for raising this really important issue, which is essentially the future of our young people here in Wales. And Lynne will be aware that early years and skills and employability are two of the particular priorities that Welsh Government has across Government, and we'll be looking very closely at those in terms of the budget setting. But I'll be having those detailed discussions with the Minister for Education, and with colleagues across Government, in terms of setting the budget. Lynne is right to point to the recent spending review. It is a real shame that the UK Government felt able to give the NHS in England and education in England the confidence, if you like, of a three-year review—or a three-year outlook for spending. Unfortunately, they didn't do the same for Wales, so we only have that one year, and we have no confidence of funding beyond that.

I've seen some of the social media and press comment from the Welsh Conservatives, which has been of interest to me. And I think it's worth setting the record straight in terms of education spending here in Wales, because it has increased by 1.8 per cent in 2017-18, and that was the fastest growth of any of the four UK countries, and spending per person on education in Wales was £1,369, and that's 5 per cent higher than spending per person in England, and equates to an additional £65 per person. So, I think it's important to be able to set the record straight.

Minister, in April, new research revealed that school spending per pupil in Wales will have fallen by 9 per cent over 10 years. This works out as a cut of £500 per pupil in real terms. In view of the fact that the Welsh Government will receive £1.25 billion of extra funding over the next three years, what discussion have you had with your colleagues to ensure that the schools in Wales get the resources they deserve?

Well, the Welsh Government will not receive £1.25 billion over the next three years; the Welsh Government will receive an additional £593 million above our current budget for next year, and that represents an increase of 2.3 per cent in real terms, and we'll also receive an additional £18 million in capital, which will be a 2.4 per cent increase on our current budget. And I have to say this goes back to that point about the NHS and education in England being afforded that three-year look ahead in terms of their budgets. We were promised, in a meeting with the Chief Secretary to the Treasury, that there would be a three-year comprehensive spending review this year. Instead, we've only been allocated a short spending round, which doesn't give us the ability to plan ahead in the same way. It doesn't give us the ability to allow local authorities to plan ahead in the same way. So, it's completely untrue to suggest that we have a three-year settlement of over £1 billion.

Despite the picture that you—

Just hold on a minute.

My apologies. I realised my headphone was broken, and there was no-one to assist me.

Despite the picture that you paint of the situation in terms of the UK, it’s the responsibility of the Government here to set priorities within its own budget. And you will be aware that the Children, Young People and Education Committee suggested strongly that there needs to be a balance of expenditure towards preventative spend, with education and schools as a central part of that. Otherwise, we will continue to lose our most experienced teachers, we’ll see increased class sizes, we’ll see further erosion of early years education and we’ll see well-being and pastoral services disappear, with the inevitable conclusion that standards will fall. So, I do hope that you will take that message clearly into your discussions with the rest of the Cabinet.

May I ask a specific question on support for the further education sector in terms of staff pay and pensions? Can you give us an update, please, because there have been no details about additional funding allocations for further education?

Thank you very much, diolch yn fawr iawn, for raising that issue. In terms of the pensions cost, you'll be aware that the total cost of the pension changes for devolved and non-devolved public pension schemes in Wales is £255 million for this year, and the UK Government only gave us £219 million in respect of those increases, with left us with a funding gap this year of £36 million, which the Welsh Government had to find. Looking ahead to next year, I think we can expect that that funding gap will increase, potentially up to £50 million. So, that does put an additional pressure on Welsh Government, and it's important to recognise as well, in terms of our funding round for next year, that the 15 per cent cut that we had this year has been baselined. So, we will have that 15 per cent cut now in future budgets as well. So, I think that's something that we continue to take up with the UK Government, because, in terms of our funding agreement with the UK Government, when they do provide pressures on us as a Government as a result of things that they have raised, then it is incumbent on them to provide us with that funding, which they haven't done. 

Specifically with regard to FE and the pensions there, those are discussions that I am having with the education Minister.