Wales’ new finance secretary insisted inflation-busting pay rises for teachers, doctors and nurses will not lead to a reduction in spending on public services.

Mark Drakeford, who was named finance secretary last week, said the Welsh Government worked through the summer to ensure funding is in place to support pay awards.

He told the Senedd: “As a result of all that work, we are confident we can fund these awards without the need to reduce spending in these or other public services.”

In a statement on September 17, the ex-first minister said teachers will receive 5.5 per cent with an extra £5m to move additional learning needs co-ordinators to a leadership pay range.

He said that doctors and nurses on ‘Agenda for Change’ terms will also receive 5.5 per cent while NHS-employed doctors and dentists will receive six per cent%.

Prof Drakeford added that ministers have agreed an average five per cent increase to the total pay bill for staff in the Welsh Government civil service and arm’s-length bodies.

He said: “Taken together, this means that more than 180,000 public sector workers – from hospital cleaners to teachers and civil servants – will receive an above-inflation pay award this year.”

But the finance secretary, who previously held the role from 2016 until 2018 when he became first minister, cautioned that the financial climate remains challenging.

The Welsh Government will publish its draft 2025-26 spending plans on December 10.

Peter Fox, the Conservatives’ shadow finance secretary, welcomed some pay increases, saying they will go some way to improving retention rates in health and education.

Mr Fox, who represents Monmouth, said: “We must be careful that both this government and the one in Westminster do not lose control of public pay.

“The Labour government in Westminster has offered almost £10,000 pay rises to train drivers, who are already on more than £60,000 a year, while taking much-needed fuel payments from our pensioners.

"What reassurances can you give the people of Wales that these future pay rises are not going to come at the expense of the most vulnerable people in society?”