Written questions by Medi.

What assessment he has made of the impact of the current costs of energy standing charges on businesses in North Wales.

The Government has not made such an assessment specific to North Wales. Levels of standing charges in the non-domestic market are a commercial decision for suppliers and are not regulated by Ofgem as they are in the domestic market. Standing charges predominantly recover ‘fixed’ costs that do not vary by energy use. This includes supplier’s operational costs for serving each customer and the cost of essential network maintenance and upgrades, which are necessary to keep all consumers connected, minimise constraint costs, meet the capacity needed to deliver clean power by 2030, and help bring down bills for households and businesses for good. We know that too much of the burden of the bill is placed on standing charges, and we are committed to ensuring that standing charges are fair to all consumers. As part of this, Ofgem have launched a Cost Allocation and Recovery Review to consider how energy system costs can be recovered from consumers in a fairer and more efficient way and government will continue to engage closely with Ofgem on the work.

What estimate he has made of the average price per kilowatt that businesses receive from suppliers when selling power to the grid under the Smart Export Guarantee compared to domestic households.

It is a commercial decision for suppliers as to how they choose to set export tariffs, and whether to treat domestic and business customers differently for the purpose of tariffs offered under the Smart Export Guarantee (SEG). Most suppliers offer SEG tariffs that are available to both domestic and business customers, but some do provide distinct tariff offerings. Details of the tariffs can be found in Ofgem’s SEG annual report. The latest report can be found at the SEG Smart Export Guarantee Annual Report - April 2024 to March 2025 | Ofgem

What impact has the decision to designate two AI Growth Zones in Wales had on NESO’s plans for improving grid connections in both (a) north Wales and (b) south Wales.

Both sites had grid connections being realised before 2030, so are already accounted for in NESO’s planning.

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.

What is the process used to determine which neighbourhoods within Welsh local authorities will receive support under the Pride of Place programme; and when those neighbourhoods will be announced.

Through the Pride in Place Programme, nine more communities in Wales will receive up to £20 million each over the next 10 years. Every local authority in Wales will also receive a share of £34.5 million through the Pride in Place Impact Fund. This £214 million investment will support communities to drive forward the changes they want to see and will deliver visible improvements to drive growth, break down barriers to opportunity, and restore pride and confidence in local areas. The nine local authorities in Wales receiving funding under the Pride in Place Programme are currently in the process of identifying the places within their area that will serve as the focus for this investment. This process combines objective data on local need with engagement from the local community and strategic alignment with other investments such as the Welsh Government’s Transforming Towns Programme and other placemaking plans. The selected places will be confirmed early in the new year.

For what reason he has adopted a different approach to Pride in Place Programme Phase 2 funding in Northern Ireland than in Wales and Scotland.

Although phase two of the Pride in Place programme will not be delivered in Northern Ireland, corresponding funding will be made available in Northern Ireland through the Local Growth Fund, with a total UK Government investment of £45.5m per annum over the Spending Review period. This decision was made in consultation with the Northern Ireland Executive.

Communities and Local Government, what is the financial breakdown for the Local Growth Fund, including capital and revenue split, for (a) Wales (b) Scotland (c) Northern Ireland and (d) England.

The UK Government is working with partners across the nations to develop and implement a new Local Growth Fund, which is part of a wider targeted, long-term approach to regional growth across the UK. Under this approach, funding for Scotland, Wales and Northern Ireland will remain at the same overall level in cash terms as under the UK Shared Prosperity Fund in 2025-26. In Scotland, Wales and Northern Ireland, we will confirm funding and delivery arrangements for the Local Growth Fund in due course. In England, the financial breakdown, including capital and revenue split, was published on 26 November: Local Growth Fund: Place selection and allocation methodology note - GOV.UK.

Communities and Local Government, for what reason the value of the Local Growth Fund for Wales was reduced from £633million to £547million.

The UK Government is working with the Welsh Government to develop and implement a new Local Growth Fund, which is part of a wider targeted, long-term approach to regional growth across the UK. Under this approach, funding for Wales will remain at the same overall level in cash terms as under the UK Shared Prosperity Fund in 2025-26. Taken alongside Wales’ four City and Regional Growth Deals, Investment Zones and Freeports, this represents a significant investment to boost growth and create jobs across Wales.

When she last met with the Welsh Government to discuss the potential impact of the increase in employer National Insurance Contributions on public sector employers in Wales.

At Autumn Budget 2024, the Chancellor agreed to provide funding to the public sector to support them with the additional cost associated with changes to employer National Insurance Contributions policy. The Welsh Government received £185 million of this support through the Barnett formula. This is the normal operation of the funding arrangements as set out in the Statement of Funding Policy. It is for the Welsh Government to allocate this funding in devolved areas including funding for local authorities as it sees fit, reflecting its own priorities and local circumstances, and it is accountable to the Senedd for these decisions. HM Treasury ministers regularly engage with their Welsh Government counterparts, including through forums such as the Finance: Interministerial Standing Committee (F:ISC), to discuss a range of issues affecting Wales, including the impact of changes to employer National Insurance contributions on Welsh Government funding. The most recent F:ISC was on 17 October where these topics were discussed.

With reference to the statement by the Welsh Government entitled Funding to Support Devolved Public Sector Employers with Increased National Insurance Costs, published on 30 May 2025, what steps her Department is planning to take to address the remaining £36 million shortfall in funding for Welsh public sector employers arising from the increase in employer National Insurance Contributions.

At Autumn Budget 2024, the Chancellor agreed to provide funding to the public sector to support them with the additional cost associated with changes to employer National Insurance Contributions policy. The Welsh Government received £185 million of this support through the Barnett formula. This is the normal operation of the funding arrangements as set out in the Statement of Funding Policy. It is for the Welsh Government to allocate this funding in devolved areas including funding for local authorities as it sees fit, reflecting its own priorities and local circumstances, and it is accountable to the Senedd for these decisions. HM Treasury ministers regularly engage with their Welsh Government counterparts, including through forums such as the Finance: Interministerial Standing Committee (F:ISC), to discuss a range of issues affecting Wales, including the impact of changes to employer National Insurance contributions on Welsh Government funding. The most recent F:ISC was on 17 October where these topics were discussed.

How much funding was provided to the Welsh Government (a) through the Barnett consequentials and (b) any other mechanisms as a result of the increase in employer National Insurance Contributions for public sector employers in Wales in the 2025-2026 financial year.

At Autumn Budget 2024, the Chancellor agreed to provide funding to the public sector to support them with the additional cost associated with changes to employer National Insurance Contributions policy. The Welsh Government received £185 million of this support through the Barnett formula. This is the normal operation of the funding arrangements as set out in the Statement of Funding Policy. It is for the Welsh Government to allocate this funding in devolved areas including funding for local authorities as it sees fit, reflecting its own priorities and local circumstances, and it is accountable to the Senedd for these decisions. HM Treasury ministers regularly engage with their Welsh Government counterparts, including through forums such as the Finance: Interministerial Standing Committee (F:ISC), to discuss a range of issues affecting Wales, including the impact of changes to employer National Insurance contributions on Welsh Government funding. The most recent F:ISC was on 17 October where these topics were discussed.

What recent estimate she has made of the number of jobs to be created through the first phase of the Floating Offshore Wind Programme in the Celtic Sea; and how many of these will be in Wales.

As part of the tender process for Offshore Wind Leasing Round 5, bidders were required to set out plans for creating onshore benefits from the development of the new wind farms. This included committing to creating new apprenticeships, and supporting those currently not in education, employment or training. Research commissioned by The Crown Estate found that across the UK up to 5,300 new jobs and up to £1.4 billion could be generated for the economy by galvanising the supply chain and infrastructure opportunities arising from the development of these new floating wind farms off the coast of South Wales and Southwest England.

Pursuant to the answer of 28 March 2025 to question 41189, how many private businesses based in Wales paid (a) lease and (b) royalties fees to the Crown Estate in 2024-25.

This information is not held centrally and could only be provided at disproportionate cost. The Crown Estate will provide separate reporting for Wales in its 2025-26 annual report and accounts.

What assessment she has made of the potential merits of introducing a cut in VAT for the hospitality sector in Wales.

The Government recognises the significant contribution made by hospitality businesses to economic growth and social life in the UK. VAT is a reserved tax, applying UK wide. VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods and services, including alcohol, whether served in hospitality establishments or sold in supermarkets. HMRC estimate that the cost of a 5 per cent reduced rate for accommodation, hospitality and tourist attractions would be around £10 billion this financial year. If the scope were also to include alcoholic beverages, the cost would be approximately £3 billion greater. The Government is supporting the hospitality sector through the business rates system. To deliver our manifesto pledge, we intend to introduce permanently lower tax rates for retail, hospitality, and leisure (RHL) properties, including those on the high street, from 2026/27. Ahead of these changes being made, we have prevented RHL relief from ending in April 2025 by extending it for one year at 40 per cent up to a cash cap of £110,000 per business and frozen the small business multiplier.

Over what period the £625 million for construction skills training announced at the Spring Statement 2025 will be (a) allocated and (b) released in each financial year; and how expenditure and outcomes will be monitored and reported.

Following recent machinery of government changes, the Department for Work and Pensions (DWP) will have lead responsibility for the Construction Skills Package and will act as Senior Responsible Owner (SRO). Policy responsibility and budget control for different elements of the package will sit across DWP and the Department for Education (DfE), with Baroness Smith retaining ministerial responsibility for the skills portfolio, including the Construction Skills Package. Construction skills policy and funding in Wales is devolved. HM Treasury has confirmed that information on funding received by the Welsh Government can be found in the Block Grant Transparency: October 2025 - GOV.UK. The Welsh Government is free to allocate this funding as it sees fit across its responsibilities. The £625 million announced for construction skills training is largely for the Spending Review period from FY2026-27 to FY2028-29. Funds will be allocated and released aligned with the delivery needs of each strand of the programme.

When the £625 million of funding to train up to 60,000 additional skilled construction workers, announced at the Spring Statement 2025, will be distributed; and how much funding the Welsh Government will receive through the Barnett Formula as a result.

Following recent machinery of government changes, the Department for Work and Pensions (DWP) will have lead responsibility for the Construction Skills Package and will act as Senior Responsible Owner (SRO). Policy responsibility and budget control for different elements of the package will sit across DWP and the Department for Education (DfE), with Baroness Smith retaining ministerial responsibility for the skills portfolio, including the Construction Skills Package. Construction skills policy and funding in Wales is devolved. HM Treasury has confirmed that information on funding received by the Welsh Government can be found in the Block Grant Transparency: October 2025 - GOV.UK. The Welsh Government is free to allocate this funding as it sees fit across its responsibilities. The £625 million announced for construction skills training is largely for the Spending Review period from FY2026-27 to FY2028-29. Funds will be allocated and released aligned with the delivery needs of each strand of the programme.

Which body is responsible for administering and overseeing the £625 million construction skills programme.

Following recent machinery of government changes, the Department for Work and Pensions (DWP) will have lead responsibility for the Construction Skills Package and will act as Senior Responsible Owner (SRO). Policy responsibility and budget control for different elements of the package will sit across DWP and the Department for Education (DfE), with Baroness Smith retaining ministerial responsibility for the skills portfolio, including the Construction Skills Package. Construction skills policy and funding in Wales is devolved. HM Treasury has confirmed that information on funding received by the Welsh Government can be found in the Block Grant Transparency: October 2025 - GOV.UK. The Welsh Government is free to allocate this funding as it sees fit across its responsibilities. The £625 million announced for construction skills training is largely for the Spending Review period from FY2026-27 to FY2028-29. Funds will be allocated and released aligned with the delivery needs of each strand of the programme.

Pursuant to the Answer of 28 March 2025 to Question 41189, what was the total value of (a) rents and (b) royalty fees paid by private businesses to the Crown Estate in Wales in the 2024-2025 financial year.

The Crown Estate’s Integrated annual report and accounts are published each year, and laid before Parliament. These set out details of The Crown Estate’s financial returns and information on how it delivers value for the long-term benefit of the UK. The Crown Estate will provide separate reporting for Wales in its 2025-26 accounts.

What steps her Department is taking to help reduce the time taken to issue remaining (a) Remediable Service Statements and (b) Remedial Pension Saving Statements to people affected by the McCloud remedy.

The McCloud remedy under the Public Service Pensions and Judicial Offices Act 2022 took effect from October 2023 and will deliver a full remedy to all affected public service pension scheme members. Schemes are currently implementing the remedy. As part of this, all affected members are receiving a remediable service statement setting out the details of their pension entitlements and some members will also receive a Remediable Pension Savings statement in respect of their annual allowance position during the remedy period. Scheme managers are responsible for supplying members with these statements and for setting out timetables for sending out the remaining statements. HM Treasury encourages schemes to complete this process as quickly as possible and regularly discusses McCloud remedy progress and timetables with responsible authorities, including the Welsh Government, which has responsibility for the Firefighters’ pension scheme in Wales.

Whether her Department has received information from relevant Departments on their plans to issue remaining (a) Remediable Service Statements and (b) Remedial Pension Saving Statements to all people affected by the McCloud remedy for pubic sector pensions.

The McCloud remedy under the Public Service Pensions and Judicial Offices Act 2022 took effect from October 2023 and will deliver a full remedy to all affected public service pension scheme members. Schemes are currently implementing the remedy. As part of this, all affected members are receiving a remediable service statement setting out the details of their pension entitlements and some members will also receive a Remediable Pension Savings statement in respect of their annual allowance position during the remedy period. Scheme managers are responsible for supplying members with these statements and for setting out timetables for sending out the remaining statements. HM Treasury encourages schemes to complete this process as quickly as possible and regularly discusses McCloud remedy progress and timetables with responsible authorities, including the Welsh Government, which has responsibility for the Firefighters’ pension scheme in Wales.