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Wales’ education secretary has defended her “constrained” spending plans, suggesting the Welsh Government has diverted about £280m away from education towards other priorities.

Lynne Neagle told the Senedd’s education committee that her department received a £44.9m increase in the Welsh Government’s draft budget for 2026/27.

Committee chair Buffy Williams warned the “standstill” draft budget, which increases by about 2% in line with forecasts of inflation, means some areas would see a real-terms cut.

Ms Neagle told Senedd Members the education department received an inflationary uplift of £37.4m for day-to-day revenue spending and £7.5m for longer-term capital investment.

Pledging to prioritise the areas of greatest need, she said: “That 2% inflationary uplift is much lower than the amount of consequential funding that was received by Wales which was £242m in revenue and £84m in capital for 2026/27.”

‘I am really worried’

Ms Neagle said she has prioritised core services to meet legal obligations, with nearly 24% of the increase allocated to public-sector pay. She explained how the balance has been allocated to additional learning needs, school budgets and post-16 education.

“These haven’t been easy decisions for me to make,” she told the committee. “But they have been necessary to protect front-line services. I am acutely aware that there are areas that have not benefited from the level of funding that I would have liked to have seen.”

Giving evidence today (November 27), Ms Neagle said she wanted to provide extra funding for post-16 participation but she was constrained by the 2% “roll-over” budget.

The minister recognised that the education department budget is only part of the picture, with most funding for schools going via local government.

But she said: “I am really worried about the implications of a roll-over budget,” raising £262m extra for councils last year which was not possible this year due to the restated budget.

‘Heart-searching’

Ms Neagle told the committee she has had to make “heart-searching” decisions as she made a plea for a share of the £380m set aside for budget negotiations with other parties. She pledged to continue making a strong case for education around the cabinet table.

Vaughan Gething, who appointed Ms Neagle while he was First Minister in March 2024, contrasted a 2.3% uplift against inflation of 3.5% forecast alongside this week’s UK budget. He asked whether the Welsh Government would revisit headline inflation figures.

“Saying that two-and-a-bit per cent is an inflationary rise doesn’t match the facts,” he stated. “I appreciate why the finance minister called it a roll-over but, in real terms, it’s a reduction.”

Ms Neagle said the Welsh Government will need to consider the impact of revised forecasts as part of preparations for the final budget due to be published on January 20.

She sought to dispel a suggestion that First Minister Eluned Morgan has dropped education as one of her headline priorities for the Welsh Government.

‘£137m pressures’

But the minister warned the extra money for additional learning needs (ALN) is not the amount she anticipated Wales needs. She added that the consequential funding received was, in part, due to spending to address similar pressures across the border in England.

Ms Neagle acknowledged councils’ warning of £137m of schools-related pressures next year, pointing out that some local authorities even have ALN on their risk registers.

She told the committee: “In the run-up to an election, it can be tempting to put money into eye-catching initiatives – my experience… is what schools and colleges need is core funding… that is how we make the biggest difference to children and young people’s lives.”

Ms Neagle was keen to extend free school meals to secondary school pupils but “given the constraints of the roll-over budget, that meant I didn’t have the funding”.

Recalling a visit to a high school, she said: “I don’t want to be in a situation where young people are telling me they’re hungry when they’re studying for their GCSEs.”