Welsh Government secures £60m for ALN pupils after budget deadlock
A £60m boost for additional learning needs ends a three‑month Senedd standoff, paving the way for wider budget measures.
Welsh Government and Welsh Labour have struck a supplementary‑budget deal that releases an extra £60 million for pupils with additional learning needs, ending a three‑month impasse at the Senedd.
The agreement follows a July blockage of Plaid Cymru’s minority administration’s supplementary budget, when opposition parties united to reject it amid a dispute over school funding.
During the summer, Welsh Labour pressed for £100 million of unallocated money to be spent on ALN services, dismissing a £40 million compromise offered by First Minister Rhun ap Iorwerth.
Labour’s demand was driven by the higher spending on ALN in England, which the party argued should be matched in Wales.
The new deal secures a £60 million cash injection for the current financial year, translating to roughly £1,500 per pupil across Wales’s estimated 40,000 ALN learners.
Caerphilly County Borough, where around 3,500 children require extra educational support, stands to benefit directly from the funding.
Council leader Cllr Jamie Pritchard welcomed the news, stating: “There are around 3,500 learners across Caerphilly county who have additional learning needs.” They are all entitled to good quality education and support.”
He added, “I regularly speak to parents, carers and school staff who have told me about the pressures they are facing and the need for funding to keep pace with growing complexities.” Securing £60 million for pupils with ALN this year was greatly needed.”
First Minister Rhun ap Iorwerth said the agreement “reflects what can be achieved when parties across the Senedd work together”.
Welsh Labour leader Ken Skates called the £60 million a “welcome first step in dealing with the need to better fund schools”, while indicating his party will continue negotiations for further funding ahead of next year’s full budget.
Opposition voices on the Senedd criticised the deal, with Reform Wales leader Helen Jenner arguing, “This deal may be good for the failed establishment of Plaid and Labour, but it does not deliver for Wales.” While we welcome extra support for additional learning needs provision, the Welsh Government is still sending millions of pounds of taxpayers’ money overseas while our public services suffer here at home.”
The settlement also clears the way for the wider 2026/27 supplementary budget, which includes investment in the NHS, childcare and free school meals.
The supplementary budget will be laid before the Senedd today, Tuesday 13 October, with a full debate scheduled for Tuesday 3 November.
Analysts note that the £60 million injection represents a compromise between Labour’s original £100 million request and the government’s earlier £40 million offer.
Education officials expect the additional funds to be allocated to local authorities and school boards to enhance specialist staffing, assistive technology and targeted interventions for ALN pupils.
Local charities working with families of children with special educational needs have welcomed the move, saying it will help alleviate long‑standing resource gaps.
Welsh Government finance officials confirmed that the money will be drawn from unspent reserves accumulated during the pandemic response.
They added that the allocation will be monitored through quarterly reports to ensure it reaches the intended schools and learners.
Opposition parties have signalled they will scrutinise the spending closely, demanding transparency on how the funds are distributed.
The deal marks the first major budgetary agreement since Plaid Cymru formed a minority government in May, and it demonstrates a willingness among parties to cooperate on education priorities.
Stakeholders across the education sector have expressed cautious optimism, noting that while the funding is a step forward, ongoing challenges remain for meeting the diverse needs of Wales’s ALN population.
With the supplementary budget now back on track, attention will shift to the upcoming debate on broader public‑service spending, including health and social care provisions.
Senedd members are expected to vote on the supplementary budget on 3 November, after which the Welsh Government will move to implement the agreed allocations.
The resolution of the deadlock is being hailed as a pragmatic outcome that avoids further delays to critical school funding.
It also underscores the political pressure on the Welsh Government to address disparities in educational support compared with neighbouring England.
As the debate approaches, both supporters and critics will watch closely to see whether the promised £60 million translates into tangible improvements for the 3,500 Caerphilly learners and the wider cohort of ALN students across Wales.