This Annex provides an explanation of:

· changes made between the 2024-25 Final Budget (Restated in September 2024) and the First Supplementary Budget of 2024-25 published in October 2004. These changes do not form part of the baseline for the purposes of the 2025-26 Draft Budget. The tables below provide some narrative around the allocations made at the First Supplementary Budget of 2024-25.

· changes made between the 2024-25 Final Budget (Restated in September 2024) and the Draft Budget for 2025-26. These include two types of changes:

1. baseline adjustments made to the 2024-25 Final Budget (restated). These are predominantly due to allocations made in respect of the 2024-25 pay award and to meet the costs associated with the change in the SCAPE discount rate which impacts unfunded public sector pensions. A baseline adjustment as also been made to the Fuel Poverty BEL to transfer £1.255m to the Housing and Local Government MEG. This is a correction to budgets following the portfolio changes that took place earlier in the year.

2. Draft Budget allocations and transfers; the descriptions of which are set out in the tables below.

Near-Cash

BEL	1089: Basic Income
Changes at the First Supplementary Budget 2024-25	None
Changes at Draft Budget 2025-26	The budget has been reduced by £9.2m from a baselined budget of £10.7m. Only £1.5m is required in 2025-26 to continue to make final payments to recipients of the Basic Income and to undertake an evaluation of the pilot.

BEL	1694: Financial Inclusion
Changes at the First Supplementary Budget 2024-25	None
Changes at Draft Budget 2025-26	Additional funding provided £1.33m An allocation of £1m to provide additional funding for the Discretionary Assistance Fund to provide emergency support to those most in need and respond to potential increased demand during 2025-26. An allocation of £120k to fund Wales specific financial inclusion research to understand Welsh focussed characteristics / trends and cross cutting areas with digital inclusion.  £13k is allocated to provide an uplift of 3% to Credit Unions in line with uplifts to stakeholders in the public sector.

BEL	1084: Digital Inclusion
Changes at the First Supplementary Budget 2024-25	Two transfers totalling £1.5m; both non-recurrent with no impact on the budget baseline. 1. A transfer in of £500k from the Healthier Wales BEL (H&SC MEG) to support the Digital Communities Wales programme.        2. A transfer in of £1m from Reserves to support the Digital Communities Wales programme.
Changes at Draft Budget 2025-26	Additional funding provided £1.375m An allocation of £1.375m will increase total funding in 25-26 to £2.125m for the Digital Communities Wales programme (in line with 24-25 levels post one-off transfers).

BEL	1086: Supporting Communities
Changes at the First Supplementary Budget 2024-25	A transfer in of £480k from Reserves to continue to support the Local Food Partnerships in Wales. Funding was non-recurrent. It did not impact the budget baseline.
Changes at Draft Budget 2025-26	Additional funding provided £5.029m An allocation of £960k to support Local Food Partnerships. An allocation of £450k in relation to the Future Child Poverty grant funding. The additional allocation will bolster the existing funding of £1m. An allocation of £250k in relation to the National Child Poverty Strategy Community of Practice. An allocation of £295k to ensure progress monitoring on the Child Poverty Strategy is contributed to and influenced by those with lived experience.  £1.5m to support Warm Hubs in 2025-26 to enable them to continue to support and expand the provision of safe and warm places within local communities. £1.5m for further support around tackling food poverty, enabling local projects to help tackle the root causes of food poverty. A budget uplift of 3% in line with that provided to the public sector bodies will provide an uplift of £74k to uplift allocations to the Fuel Bank Foundation and the WLGA and Food Sense Wales to deliver the Food Poverty programme.

BEL	662: Older People’s Commissioner
Changes at the First Supplementary Budget 2024-25	Budget reduction of -£14k which was non-recurrent and did not impact the budget baseline. The transfer to reserves was due to adjustments as a result of the reclassification of budgets associated with the implementation of the new accounting standard for leases, IFRS 16, which was adopted by the public sector from 1 April 2022.
Changes at Draft Budget 2025-26	A budget uplift of 3% (£48k)

BEL	480: Children’s Commissioner
Changes at the First Supplementary Budget 2024-25	Budget reduction of -£29k which was non-recurrent and did not impact the budget baseline. The transfer to reserves was due to adjustments as a result of the reclassification of budgets associated with the implementation of the new accounting standard for leases, IFRS 16, which was adopted by the public sector from 1 April 2022.
Changes at Draft Budget 2025-26	Additional funding provided £98k A budget uplift of 3% (£48k). Further allocation of £50k (one-off) to support the Commissioner’s participation as a core participant in the module on Children and Young People in the Covid Inquiry.

BEL	470: Public Appointments
Changes at the First Supplementary Budget 2024-25	None
Changes at Draft Budget 2025-26	None

BEL	6400: Future Generation’s Commissioner
Changes at the First Supplementary Budget 2024-25	None
Changes at Draft Budget 2025-26	A budget uplift of 3% (£48k)

BEL	1575: Public Service Boards
Changes at the First Supplementary Budget 2024-25	None
Changes at Draft Budget 2025-26	Transfer in of £105k from the Housing & Local Government MEG (BEL 887) as part of the MEG restructures to cover staff costs.

BEL	220: Citizens Voice Body
Changes at the First Supplementary Budget 2024-25	Budget reduction of -£243k which was non-recurrent and did not impact the budget baseline. The transfer to reserves was due to adjustments as a result of the reclassification of budgets associated with the implementation of the new accounting standard for leases, IFRS 16, which was adopted by the public sector from 1 April 2022.
Changes at Draft Budget 2025-26	A budget uplift of 3% (£228k)

BEL	541: VAWDASV
Changes at the First Supplementary Budget 2024-25	A transfer in of £139k from the Homelessness BEL (H&LG MEG) to support the continued delivery of the Refugee Well Housing project in 2024-25. Budget transfer was non-recurrent and did not impact the budget baseline.
Changes at Draft Budget 2025-26	Budget increased by £1.280m An additional allocation of £500k to support the delivery of Objective 6 in the VAWDASV National Strategy 2022-26 to provide all victims with equal access to appropriate resources, high quality, needs-led, strength-based, inter-sectional and responsive services across Wales.” An allocation of £700k for further support to deliver Objective 4 in the VAWDASV National Strategy 2022-2026 to Make early intervention and prevention a priority. A budget uplift of 3% in line with that provided to the public sector bodies will provide an uplift of £80k to this BEL to uplift allocations to partners in the Third Sector.

BEL	7060: Equality, Inclusion and Human Rights
Changes at the First Supplementary Budget 2024-25	None
Changes at Draft Budget 2025-26	Additional budget allocations of £700k An allocation of £450k to target action aimed and tackling inequality and advancing human rights, reflecting the challenging context still felt by those with protected characteristics facing inequality and discrimination and the third sector organisations that support them.  This will help organisations to support delivery of our cross-government plans including the Anti-racist Wales Action Plan, LGBTQ+ Action Plan and forthcoming disability rights plan. An allocation of £200k to support work to break down barriers for the deaf community improving access to services. A budget uplift of 3% in line with that provided to the public sector bodies will provide an uplift of £50k to uplift allocations to organisations like Stonewall Cymru, Disability Wales, Women’s Equality Network Wales and Fair Treatment for the Women of Wales.

BEL	7062: Cohesive Communities
Changes at the First Supplementary Budget 2024-25	Budget uplifts totalling £3.094m that were non-recurrent and did not impact the budget baseline. A transfer in of £304k from the Homelessness BEL (H&LG MEG) to support the continued delivery of the Street Life projects in 2024-25. A transfer in of £200k from the Post-16 Provision BEL 4763 (Education MEG) to strengthen and expand delivery of REACH+, set up to reduce waiting times for migrants to access ESOL provision.  A transfer in of £2.59m from Reserves to fund local authorities to provide move on, settlement and integration support to our Ukrainian arrivals in 24-25.
Changes at Draft Budget 2025-26	Budget uplift totalling £231k An allocation of £870k to increase activity under the Wales Sanctuary Service which helps Asylum Seekers understand their rights, the Cohesion Programme; and provide new funding for the Talent Beyond Boundaries programme which supports refugees to migrate for work with dignity and purpose and benefit from skilled migration. A budget uplift of 3% in line with that provided to the public sector bodies will provide an uplift of £61k to uplift allocations to partners in the Third Sector. Transfer out of the MEG of -£700k to the Housing and Local Government MEG; representing staff costs working on the Transitionary Accommodation Capital Programme. Staff are now part of the Housing Directorate.

BEL	7063: Equality, Poverty & Children’s Evidence & Support
Changes at the First Supplementary Budget 2024-25	None
Changes at Draft Budget 2025-26	Budget uplift totalling £312k to meet emerging evidence needs within the areas of race, disability, gender or LGBTQ+.

BEL	5334: Advice Services
Changes at the First Supplementary Budget 2024-25	Budget uplifts totalling £1.391m which were non-recurrent and did not impact the budget baseline. A transfer in of £1.291m from Reserves in relation to the WG share of the annual UK financial levy for provision of debt advice in Wales in 24-25. A transfer in of £0.1m from Reserves to fund the Welsh Government’s Cost of Living campaign, Here to Help.
Changes at Draft Budget 2025-26	Budget uplifts totalling £2.73m Specific ring-fenced allocation of £1.874m from the UK Government from the Debt Levy. £0.5m to support the work on streamlining Welsh benefits.  A budget uplift of 3% in line with that provided to the public sector bodies will provide an uplift of £363k to uplift allocations to third sector organisations including Shelter.

BEL	1695: Support for the Voluntary Sector
Changes at the First Supplementary Budget 2024-25	None
Changes at Draft Budget 2025-26	Budget uplifts totalling £1.44m to support third sector infrastructure and volunteering and to provide a budget uplift of 3% to partners in the third sector in line with that provided to the public sector bodies.

BEL	830: Community Support and Safety
Changes at the First Supplementary Budget 2024-25	None
Changes at Draft Budget 2025-26	Totalling £515k A one-off, non-recurrent allocation of £50k to undertake an evaluation of Police Community Support Officers. A budget uplift of 3% in line with other public sector bodies (£465k).

BEL	1267: Women's Justice & Youth Justice Blueprints
Changes at the First Supplementary Budget 2024-25	None
Changes at Draft Budget 2025-26	Additional funding to expand work on Youth and Women’s Justice Blueprints £200k to address some of the most intractable and complex issues with the youth justice system and to better support vulnerable children away from crime.

BEL	1270: Fuel Poverty
Changes at the First Supplementary Budget 2024-25	A transfer out of -£1.255m to the Housing and Local Government MEG in relation to the MEG re-structure. Non-recurrent. This transfer was baselined by through a baseline adjustment.
Changes at Draft Budget 2025-26	None

Non-Cash

BEL	1084: Digital Inclusion
Changes at the First Supplementary Budget 2024-25	No changes
Changes at Draft Budget 2025-26	A transfer to reserves of -£124k due to a reduction in non-cash required.

BEL	662: Older People’s Commissioner
Changes at the First Supplementary Budget 2024-25	Total transfers in of £43k that were non-recurrent and did not impact the budget baseline. A transfer from reserves of £16k due to adjustments as a result of the reclassification of budgets associated with the implementation of the new accounting standard for leases, IFRS 16, which was adopted by the public sector from 1 April 2022. A transfer from reserves of £27k to provide non-cash cover (non IFRS16) in 2024-25.
Changes at Draft Budget 2025-26	Repeated transfers as above of £43k due to non-recurrent nature of transfers at the First Supplementary budget.

BEL	6400: Future Generations Commissioner
Changes at the First Supplementary Budget 2024-25	A transfer from reserves of £10k to provide non-cash cover (non IFRS16) in 2024-25.
Changes at Draft Budget 2025-26	A transfer from reserves of £10k to provide non-cash cover (non IFRS16) in 2024-25.

BEL	220: Citizens Voice Body
Changes at the First Supplementary Budget 2024-25	Total transfers of £367k that were non-recurrent and did not impact the budget baseline. A transfer from reserves of £242k due to adjustments as a result of the reclassification of budgets associated with the implementation of the new accounting standard for leases, IFRS 16, which was adopted by the public sector from 1 April 2022. A transfer from reserves of £125k to provide non-cash cover (non IFRS16) in 2024-25.
Changes at Draft Budget 2025-26	Transfers of £367k as set out above due to non-recurrent nature of transfers at the First Supplementary budget.

BEL	7060: Equality, Inclusion and Human Rights
Changes at the First Supplementary Budget 2024-25	No changes
Changes at Draft Budget 2025-26	A transfer to reserves of -£2k due to a reduction in non-cash required.

Capital

BEL	1694: Financial Inclusion
Changes at the First Supplementary Budget 2024-25	No changes
Changes at Draft Budget 2025-26	A transfer within the MEG to repurpose -£80k provided at the 24-25 Draft Budget on a one-off non-recurrent basis.

BEL	1088: Community Bank
Changes at the First Supplementary Budget 2024-25	A transfer of -£10k to the Future Generation Commissioner BEL 6400 to redesign the Future Generations Commissioner’s website.
Changes at Draft Budget 2025-26	A transfer within the MEG to repurpose -£50k, there are no plans to take forward activity during 25-26.

BEL	541: VAWDASV
Changes at the First Supplementary Budget 2024-25	No changes.
Changes at Draft Budget 2025-26	Allocation of £900k to the VAWDASV Capital Grants scheme which provides small and large grants to support the delivery of the VAWDASV National Strategy 2022-26. This includes funding of properties, refurbishment, service improvement, victim safety projects and improving and upgrading service user spaces and equipment.

BEL	662: Older People’s Commissioner
Changes at the First Supplementary Budget 2024-25	No changes.
Changes at Draft Budget 2025-26	A transfer within the MEG to repurpose -£100k provided at the 24-25 Draft Budget on a one-off non-recurrent basis.

BEL	480: Children’s Commissioner
Changes at the First Supplementary Budget 2024-25	Repurposed -£20k from this budget in year as the funding could not be used as planned.
Changes at Draft Budget 2025-26	A transfer within the MEG to repurpose -£20k provided at the 24-25 Draft Budget on a one-off non-recurrent basis.

BEL	6400: Future Generation’s Commissioner
Changes at the First Supplementary Budget 2024-25	Allocated £30k in year on a one-off non-recurrent basis to support the re-design of the Commissioner’s website.
Changes at Draft Budget 2025-26	No changes

BEL	220: Citizens Voice Body
Changes at the First Supplementary Budget 2024-25	A transfer of £128k from Reserves on a non-recurrent basis due to IFRS 16 CDEL implications following re-measurement of Lease Liabilities and Right of Use adjustments
Changes at Draft Budget 2025-26	No change

BEL	1267: Women's Justice & Youth Justice Blueprints
Changes at the First Supplementary Budget 2024-25	No changes
Changes at Draft Budget 2025-26	Transfer out of -£200k in respect of budget allocations that was provided through the 24-25 Draft Budget on a one-off non-recurrent basis.

BEL	1372: Community Facilities Programme
Changes at the First Supplementary Budget 2024-25	No changes
Changes at Draft Budget 2025-26	An allocation of £2.9m to the Community Facilities Programme.

FT Capital

BEL	1694: Financial Inclusion - repayments
Changes at the First Supplementary Budget 2024-25	No changes
Changes at Draft Budget 2025-26	Planned repayments of -£39k relating to Financial Transaction Capital.

BEL	1372: Community Facilities Programme (FT capital)
Changes at the First Supplementary Budget 2024-25	No changes
Changes at Draft Budget 2025-26	An allocation of £1.5m to support the WCVA’s Community Asset Loan Fund.