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 17 September, 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 explained 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 over 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.

“Difficult decisions will once again shape next year’s budget,” he said.

“However, making this decision now, giving certainty to public sector employers and, crucially, those who work in our public services, means that increases will be reflected in pay packets as soon as possible, and before the end of this year at the latest.”

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

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.

But he raised concerns about public pay as a whole in his response to the statement.

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

“I'm glad that you are confident that, unlike your colleagues in Westminster, you do not feel as if you have to cut services for this round of pay rises.

“That's welcome.

“However, as you indicate, there could be more public sector rises to come.”