Mike Hedges AM calls for money to be found for funding of Teachers Pension contributions

Mike Hedges AM calls for money to be found for funding of Teachers Pension contributions

Swansea East AM has asked the First Minister, Carwyn Jones, for the Welsh Government to pass on any extra money from Westminster to pay for the increases in Teachers pension contributions – the cost of which will fall on school budgets if nothing extra is found either from Westminster or the Welsh Government.

Speaking after First Minister Questions, Mike Hedges said…. Like many of my colleagues, I am very worried about the costs associated with increasing the contribution to Teachers Pensions. With schools already facing real pressure after the recent budget settlements, the idea that they might have to find significant extra money for teacher’s pensions is horrifying. I am very worried indeed that this will see a big impact on school budgets which may in turn impact on the number of teachers in our schools. I would urge the First Minister to pass on any extra money from Westminster to schools in full.
Mike Hedges AM – 1. Will the First Minister make a statement on funding the increase in teacher pension contributions? OAQ52895

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Carwyn Jones AM – 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.3

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Mike Hedges AM – 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?4

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Carwyn Jones AM – 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 the 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 a 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.