Wales Budget Deal Adds £60m for Additional Learning Needs 2026

Key Points

• Agreement reached between the Welsh Government and Welsh Labour over the Supplementary Budget for 2026-27.
• This agreement includes an extra allocation of £60 million for Additional Learning Needs (ALN).
• It paves the way for the Supplementary budget to be laid before the Senedd on Tuesday, 13 October 2026.
• The budget will then be debated in the Senedd on Tuesday, 3 November 2026.
• The previous supplementary budget was rejected on 14 July, where 49 Members of the Senedd voted against it while 44 Members voted in favor of it.
• Prior to that, Welsh Labour demanded an allocation of £100 million for ALN in the current financial year.
• Prior to the July vote, First Minister Rhun ap Iorwerth had offered Labour an extra £40 million in 2026-27, with further allocations over the next two years.
• The new budget also has allocations made previously announced in June in relation to the NHS, childcare and free school meals.
• “The agreement shows what can be achieved when different parties work together in the Senedd,” said First Minister Rhun ap Iorwerth.
• Leader of Welsh Labour, Ken Skates said that the money will now be put to use by children and young people.

Wales (Wales Times) October 13, 2026 — The Welsh Government and Welsh Labour have reached a budget agreement that will provide an extra £60 million for children and young people with Additional Learning Needs in Wales during the current financial year.

As reported by ITV News, the deal between the Plaid Cymru-led Welsh Government and Welsh Labour will see the additional ALN funding included in the 2026-27 Supplementary Budget. The agreement removes a major obstacle to the budget’s progress after the Welsh Government’s earlier spending plans failed to pass in the Senedd during the summer.

The Welsh Government said the revised budget would be laid before the Senedd on Tuesday, 13 October. A debate on the supplementary budget is scheduled for Tuesday, 3 November.

How much extra ALN funding has been agreed?

The agreement provides £60 million of additional funding for Additional Learning Needs in this financial year.

As reported by Nation.Cymru, the Welsh Government said the package would “unlock an extra £60m towards Additional Learning Needs in this financial year”. The outlet reported that the revised budget also carries forward investment first announced in June, covering the NHS, childcare and free school meals.

The BBC reported that ministers said the Plaid Cymru-led administration had now agreed the extra £60 million for children with additional learning needs. ITV News also reported that the deal would see the extra £60 million directed towards ALN support.

Welsh Labour leader Ken Skates welcomed the funding. As quoted by Nation.Cymru, he said: “We are pleased to have secured an additional £60 million for Additional Learning Needs this year.”

He added: “This money will make a huge difference to schools and colleges across Wales, and it is important that it now delivers for the children and young people who need it.”

Why did the previous Welsh budget fail?

The previous supplementary budget failed to secure approval in the Senedd in July after Welsh Labour refused to support it.

According to Nation.Cymru, the earlier supplementary budget was defeated on 14 July, with 49 Members of the Senedd voting against the plans and 44 supporting them. The BBC reported that the Plaid Cymru-led administration had failed to pass its spending plans during the summer.

The dispute centred on funding for ALN. Nation.Cymru reported that Labour had called for £100 million of the Welsh Government’s unallocated funding to be spent on ALN during the financial year.

Ahead of the July vote, First Minister Rhun ap Iorwerth wrote to Welsh Labour offering an additional £40 million that year and in each of the following two financial years. The BBC reported that this would have amounted to £120 million over three years, but Labour continued to press for £100 million to be spent in the current financial year.

What did Rhun ap Iorwerth say about the deal?

First Minister Rhun ap Iorwerth said the agreement demonstrated the value of cross-party cooperation in the Senedd.

As quoted by Nation.Cymru, Mr ap Iorwerth said: “This agreement reflects what can be achieved when parties across the Senedd work together.”

He said:

“It will unlock an extra £60m towards Additional Learning Needs in this financial year.”

The First Minister added:

“It also allows us to bring forward a Supplementary Budget that continues our investment in the NHS, childcare and free school meals.”

The BBC attributed a similar comment to Minister Rhun ap Iorwerth, who said:

“This agreement demonstrates what can be accomplished when parties collaborate within the Senedd.”

What does the deal mean for Welsh Labour?

For Welsh Labour, the agreement secures a higher level of ALN funding for the current financial year than the offer it rejected before the July vote.

The BBC reported that Welsh Labour, now in opposition after its defeat in May’s Senedd election, had turned down a proposal for £40 million per year over three years during heated exchanges at the Welsh Parliament in the final week of the July term.

Welsh Labour leader Ken Skates had previously called for £100 million this year during discussions on the supplementary budget, according to the BBC. The newly agreed £60 million is below that figure, but it represents additional funding for ALN in 2026-27 and allows Labour to support the budget’s progression.

Nation.Cymru reported that the agreement followed months of disagreement over education funding. It said Labour’s refusal to support the previous supplementary budget in July had contributed to the political deadlock.

What happens next in the Senedd?

The supplementary budget will now be laid before the Senedd on 13 October 2026 and debated on 3 November 2026.

According to Nation.Cymru, the spending plans for 2026-27 will be laid before the Senedd on the day of the announcement, with a debate scheduled for 3 November. The BBC also reported that the budget is scheduled for discussion in the Senedd on that date.

WalesOnline reported that the deal means the supplementary budget will be laid in the Senedd on Tuesday, 13 October, and debated from Tuesday, 3 November. The outlet said the agreement means £60 million for ALN funding in this financial year.

The vote will determine whether the Welsh Government’s revised spending plans can proceed. The agreement between the government and Welsh Labour provides a parliamentary route for the budget after the earlier version failed.

What else is in the revised Welsh budget?

The revised supplementary budget includes the wider investment package first announced by the Welsh Government in June.

Nation.Cymru reported that the budget includes investment in the NHS, childcare and free school meals, alongside the additional ALN funding for this financial year. The First Minister’s comments, as reported by the outlet, also referred to continued investment in those areas.

The National reported that the agreement with Welsh Labour adds £60 million to the 2026-27 Supplementary Budget, boosting support for additional learning needs, the NHS, childcare and free school meals.

The earlier budget proposals, as described in a Rhondda Cynon Taf council document, had included £145 million to reduce NHS waiting lists, £120 million to support children and young people with additional learning needs, £55 million to expand funded childcare, and £15 million to extend free school meals to secondary pupils most in need. Those figures related to the earlier proposals and should not be treated as the final allocation in the newly agreed budget.

Background of the development

Additional Learning Needs refers to support for children and young people who require help beyond that generally provided in mainstream education. In Wales, ALN policy has been a recurring point of disagreement between the Welsh Government and opposition parties, particularly over the level and timing of funding.

The immediate background to this agreement is the defeat of the Welsh Government’s previous supplementary budget on 14 July. Nation.Cymru reported that 49 Members of the Senedd voted against the plans and 44 supported them, preventing the budget from proceeding.

At that stage, the Welsh Government had proposed £120 million of ALN funding over three years. The BBC reported that the offer would have seen £40 million allocated in the current year, followed by further funding in the next two financial years. Welsh Labour, however, wanted £100 million spent in the current financial year.

In September, the BBC reported that First Minister Rhun ap Iorwerth said there was a “small window” to reach an ALN funding deal. He said the £40 million on the table remained available, while Ken Skates told him the money offered was “still not enough”.

The new agreement resolves that standoff for the current financial year by providing £60 million for ALN. It also allows the Welsh Government to bring its wider supplementary budget back before the Senedd, including spending plans for health, childcare and free school meals.

Prediction: How the deal could affect Welsh pupils and families

For pupils with additional learning needs, the immediate effect of the agreement is the prospect of an extra £60 million being available during the current financial year. If the supplementary budget passes in November, schools, colleges and local authorities may receive additional resources to support children and young people who need targeted educational help.

For families, the deal could influence the availability and quality of ALN support, depending on how the funding is distributed and spent. Welsh Labour leader Ken Skates said the money should now deliver for the children and young people who need it, reflecting the expectation that the funding must translate into practical support in education settings.

For schools and colleges, the agreement may provide greater certainty after months of budget uncertainty. The Welsh Government says the deal allows it to continue investment in the NHS, childcare and free school meals as well as ALN, which could affect services beyond the classroom.

The agreement may also change the political dynamics in the Senedd. With Welsh Labour supporting the revised budget, the Plaid Cymru-led government has a clearer path to passage than it had in July, when its plans were defeated. The 3 November debate and vote will show whether the deal holds and whether the additional ALN funding proceeds as announced.