What Barnett consequential funding will Wales receive as a direct result of measures set out in the UK Government’s child poverty strategy published on 5 December 2025.
The Barnett formula has been applied in the normal way to changes in UK Government Departmental Expenditure Limit (DEL). Spending Review 2025 provided the Welsh Government with their largest spending review settlements in real terms since devolution. As a result of decisions at Budget 2025, the Welsh Government will receive an additional £320 million RDELex and £185 million CDEL through the operation of the Barnett formula on top of these record settlements. This means the Welsh Government’s settlement continues to grow in real terms between 2024-25 and 2028-29. Tackling child poverty is at the heart of this government’s mission to break down barriers to opportunity and give every child the best start in life. The Government is investing in the future of our children and introducing a fundamental change by removing the two-child limit on Universal Credit, benefitting 69,000 children in Wales. This comes alongside a package of measures that will drive down working poverty by raising the minimum wage, creating more secure jobs by strengthening rights at work. The Strategy builds on the reform plans already underway across government and the important work underway in Welsh Government. We are committed to continued collaboration with the Welsh Government to tackle child poverty across Wales, particularly through the implementation phase that will now follow.