This Annex provides an explanation of:

1. Changes made between the 2025-26 Final Budget and the First Supplementary Budget of 2025-26 published in June 2025. The tables below provide some narrative around the allocations made at the First Supplementary Budget of 2025-26, and

2. Changes made between the 2025-26 Final Budget and the Draft Budget for 2026-27. These include two types of changes:

· Baseline adjustments made to the 2025-26 Final Budget. These are predominantly due to allocations made in respect of the 2025-26 pay award and to meet the costs associated with the change in national insurance. A baseline adjustment has also been made to the Advice Services BEL to transfer £4.320m back to reserves due to a one-off ring-fenced debt levy allocation in 2025-26 (which has then been subsequently replaced with a new ring-fenced allocation for 2026-27 of £5.166m from the UK Government from the Debt Levy as listed per the tables below), and

· 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 2025-26	One recurrent with impact on the budget baseline: Transfer in of £2k from Reserves to cover the rise in National Insurance Contributions (NICs) for programme funded WG staff.
Changes at Draft Budget 2026-27	The budget has been reduced by £1.205m from a baselined budget of £1.505m. Only £0.3m is required in 2026-27 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 2025-26	None
Changes at Draft Budget 2026-27	Allocations totalling £681k A budget uplift of 2% (£801k). A reduction of £120k due to a one-off funding in 25-26 for research.

BEL	1084: Digital Inclusion
Changes at the First Supplementary Budget 2025-26	Transfers totalling £602k Two 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 £100k from BEL 7060 Equality, Inclusion and Human Rights to BEL 1084 Digital Inclusion BEL to support the Digital Communities Wales programme. One recurrent with impact on the budget baseline. 3. A transfer in of £2k from Reserves to cover the rise in National Insurance Contributions (NICs) for programme funded WG staff.
Changes at Draft Budget 2026-27	Allocations totalling £168k A budget uplift of 2% (£43k). An allocation of £125k will increase total funding to £2.299m (following a 2% uplift). Digital Inclusion activity was previously part funded by Health but this completes the work to fully fund core activity from this BEL.

BEL	1086: Supporting Communities
Changes at the First Supplementary Budget 2025-26	One recurrent with impact on the budget baseline: Transfer in of £2k from Reserves to cover the rise in National Insurance Contributions (NICs) for programme funded WG staff.
Changes at Draft Budget 2026-27	Reduction in funding -£140k A budget uplift of 2% (£155k). An additional allocation for implementation of the Child Poverty Strategy including £450k to increase funding for the Child Poverty grant. An additional £250k to continue to support the National Child Poverty Strategy Community of Practice (COP). A reduction of £995k that was one-off funding in 25-26.

BEL	662: Older People’s Commissioner
Changes at the First Supplementary Budget 2025-26	One recurrent with impact on the budget baseline: Transfer in of £18k from Reserves to cover the rise in National Insurance Contributions (NICs) for public sector employers in Wales.
Changes at Draft Budget 2026-27	Allocations totalling £38k A budget uplift of 2% (£35k) A budget uplift of 0.2% for public sector pay (£3k).

BEL	480: Children’s Commissioner
Changes at the First Supplementary Budget 2025-26	One recurrent with impact on the budget baseline: Transfer in of £24k from Reserves to cover the rise in National Insurance Contributions (NICs) for public sector employers in Wales.
Changes at Draft Budget 2026-27	Reduction in funding -£12k A budget uplift of 2% (£35k) A budget uplift of 0.2% for public sector pay (£3k). A reduction of £50k due to a one-off funding in 25-26 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 2025-26	None
Changes at Draft Budget 2026-27	A budget uplift of 2% (£3k).

BEL	6400: Future Generation’s Commissioner
Changes at the First Supplementary Budget 2025-26	One recurrent with impact on the budget baseline: Transfer in of £21k from Reserves to cover the rise in National Insurance Contributions (NICs) for public sector employers in Wales.
Changes at Draft Budget 2026-27	Allocations totalling £37k A budget uplift of 2% (£34k) A budget uplift of 0.2% for public sector pay (£3k).

BEL	1575: Public Service Boards
Changes at the First Supplementary Budget 2025-26	None
Changes at Draft Budget 2026-27	A budget uplift of 2% (£12k).

BEL	220: Citizens Voice Body
Changes at the First Supplementary Budget 2025-26	One recurrent with impact on the budget baseline: Transfer in of £96k from Reserves to cover the rise in National Insurance Contributions (NICs) for public sector employers in Wales.
Changes at Draft Budget 2026-27	Allocations totalling £171k A budget uplift of 2% (£161k). A budget uplift of 0.2% for public sector pay (£10k).

BEL	541: VAWDASV
Changes at the First Supplementary Budget 2025-26	One recurrent with impact on the budget baseline: Transfer in of £6k from Reserves to cover the rise in National Insurance Contributions (NICs) for programme funded WG staff.
Changes at Draft Budget 2026-27	Allocations totalling £725k A budget uplift of 2% (£187k). A budget uplift of 0.2% for public sector pay (£2k). An additional £536k revenue has been allocated to the VAWDASV budget, to support the delivery of Objective 6 in the VAWDASV National Strategy 2022-2026.  As well as additional revenue funding to support the extension and additional support within the Live Fear Free contract and to support the delivery of Step-Up, Step-Down services and/or IDVA provision within regions.

BEL	7060: Equality, Inclusion and Human Rights
Changes at the First Supplementary Budget 2025-26	Transfers totalling -£73k One non-recurrent with no impact on the budget baseline. A transfer out of £100k from BEL 7060 Equality, Inclusion and Human Rights to BEL 1084 Digital Inclusion BEL to support the Digital Communities Wales programme. One recurrent with impact on the budget baseline: Transfer in of £27k from Reserves to cover the rise in National Insurance Contributions (NICs) for programme funded WG staff.
Changes at Draft Budget 2026-27	Allocations totalling £829k A budget uplift of 2% (£212k). A budget uplift of 0.2% for public sector pay (£3k). An allocation of £214k to fund the first-year costs of implementation of the British Sign Language (Wales) Bill. An allocation of £400k has been made to the Equality, Inclusion and Human Rights BEL to support delivery of the currently unfunded PfG commitment to create an Equalities Legal Service.

BEL	7062: Cohesive Communities
Changes at the First Supplementary Budget 2025-26	Transfers totalling -£187k One non-recurrent with no impact on the budget baseline. A MEG to MEG transfer out of £200k from BEL 7062 Cohesive Communities to BEL 4775 – Education MEG for the British Red Cross. One recurrent with impact on the budget baseline: Transfer in of £13k from Reserves to cover the rise in National Insurance Contributions (NICs) for programme funded WG staff.
Changes at Draft Budget 2026-27	Allocations totalling £200k A budget uplift of 2% (£198k). A budget uplift of 0.2% for public sector pay (£2k).

BEL	7063: Equality, Poverty & Children’s Evidence & Support
Changes at the First Supplementary Budget 2025-26	One recurrent with impact on the budget baseline: Transfer in of £24k from Reserves to cover the rise in National Insurance Contributions (NICs) for programme funded WG staff.
Changes at Draft Budget 2026-27	Allocations totalling £44k A budget uplift of 2% (£41k). A budget uplift of 0.2% for public sector pay (£3k).

BEL	5334: Advice Services
Changes at the First Supplementary Budget 2025-26	Transfers totalling £2,372k Three non-recurrent transfers with no impact on the budget baseline. 1. A transfer in of £1,400k from reserves to be utilised through the Single Advice Fund regional and national services on the provision of income maximisation services in 2025-26 2. A transfer in of £125k from reserves to be used on the provision of debt related advice services 3. A transfer in of £846k from reserves in relation to the Welsh Government’s share of the UK financial levy 2025 -26 One recurrent with impact on the budget baseline: A transfer in of £1k from Reserves to cover the rise in National Insurance Contributions (NICs) for programme funded WG staff.
Changes at Draft Budget 2026-27	Allocations totalling £5,868k A budget uplift of 2% (£202k). Specific ring-fenced allocation of £5,166k from the UK Government from the Debt Levy. An additional £500k revenue to continue to support the work on streamlining Welsh benefits will also make it easier for people to access the benefits they are entitled to.

BEL	1695: Support for the Voluntary Sector
Changes at the First Supplementary Budget 2025-26	None
Changes at Draft Budget 2026-27	Allocations totalling £387k A budget uplift of 2% (£198k). Additional FT capital to provide a further £1.530m loan to WCVA for the Community Asset Loan Fund. This creates a revenue requirement of £189k.

BEL	830: Community Support and Safety
Changes at the First Supplementary Budget 2025-26	None
Changes at Draft Budget 2026-27	Allocations totalling £270k A budget uplift of 2% (£320k). A reduction of £50k due to a one-off funding in 25-26 for evaluation.

BEL	1267: Criminal Justice Delivery
Changes at the First Supplementary Budget 2025-26	One recurrent with impact on the budget baseline: A transfer in of £2k from Reserves to cover the rise in National Insurance Contributions (NICs) for programme funded WG staff.
Changes at Draft Budget 2026-27	Allocations totalling £146k A budget uplift of 2% (£26k). An allocation of £120k to fund a pilot scheme in collaboration with Greater Change to explore a different approach to supporting those who are homeless or at risk of homelessness.

BEL	1270: Fuel Poverty Programme
Changes at the First Supplementary Budget 2025-26	None
Changes at Draft Budget 2026-27	A budget uplift of 2% (£13k).

Non-Cash

BEL	1084: Digital Inclusion
Changes at the First Supplementary Budget 2025-26	None
Changes at Draft Budget 2026-27	A transfer to reserves of £25k due to a reduction in non-cash required.

BEL	662: Older People’s Commissioner
Changes at the First Supplementary Budget 2025-26	Transfer out of £20k to reserves for depreciation cover that is no longer needed in relation to the capital budget of £100k in 2024-25, which did not go ahead.
Changes at Draft Budget 2026-27	A transfer to reserves of £20k due to a reduction in non-cash required.

BEL	6400: Future Generations Commissioner
Changes at the First Supplementary Budget 2025-26	None
Changes at Draft Budget 2026-27	None

BEL	480: Children’s Commissioner
Changes at the First Supplementary Budget 2025-26	None
Changes at Draft Budget 2026-27	None

BEL	220: Citizens Voice Body
Changes at the First Supplementary Budget 2025-26	None
Changes at Draft Budget 2026-27	None

BEL	7060: Equality, Inclusion and Human Rights
Changes at the First Supplementary Budget 2025-26	None
Changes at Draft Budget 2026-27	A transfer to reserves of £1k due to a reduction in non-cash required.

Capital

BEL	1694: Financial Inclusion
Changes at the First Supplementary Budget 2025-26	None
Changes at Draft Budget 2026-27	Allocation of £358k This will create a capital funding programme for credit unions. Having dedicated capital funding will enable a more strategic, and fairer, approach to funding the sector - rather than a reactive approach to ad hoc bids which rely on in-year underspends elsewhere in the MEG.

BEL	1084: Digital Inclusion
Changes at the First Supplementary Budget 2025-26	None
Changes at Draft Budget 2026-27	None

BEL	1086: Supporting Communities
Changes at the First Supplementary Budget 2025-26	None
Changes at Draft Budget 2026-27	None

BEL	1088: Gypsy Traveller Sites
Changes at the First Supplementary Budget 2025-26	None
Changes at Draft Budget 2026-27	None

BEL	541: VAWDASV
Changes at the First Supplementary Budget 2025-26	None
Changes at Draft Budget 2026-27	None

BEL	1372: Community Facilities Programme
Changes at the First Supplementary Budget 2025-26	None
Changes at Draft Budget 2026-27	None

FT Capital

BEL	1694: Financial Inclusion - repayments
Changes at the First Supplementary Budget 2025-26	Planned repayments of £10k relating to Financial Transaction Capital.
Changes at Draft Budget 2026-27	Planned repayments of £1.073m relating to Financial Transaction Capital.

BEL	1372: Community Facilities Programme (FT capital)
Changes at the First Supplementary Budget 2025-26	None
Changes at Draft Budget 2026-27	An allocation of £1.530m to support the WCVA’s Community Asset Loan Fund.