The Welsh Government remains in the dark about how much Wales will receive to cover the estimated £109m cost of tax rises in the public sector, a committee heard.
Jayne Bryant said the UK Government has confirmed it will provide funding to public-sector employers towards the increased cost of national insurance contributions from April.
But Wales’ local government secretary said ministers expect to receive additional funding in ‘late spring’ and have not yet received confirmation of how much Wales will receive.
Plaid Cymru’s Siân Gwenllian raised concerns about the impact of tax hikes as the Senedd’s local government committee scrutinised Welsh ministers’ 2025/26 spending plans.
Judith Cole, deputy director of council finance policy, said the Welsh Government estimates the cost of the tax hike to the public sector in Wales at £109m.
Asked how funding will be divided between councils, Ms Cole said the standard funding formula could be used or it may be based on a proportion of spending as in England.
But she stressed that other factors need to be taken into account because, for example, some councils will provide more services by directly employed staff.
Reg Kilpatrick, director of local government, added: “We’re entirely dependent on the negotiations between the cabinet secretary for finance and the UK treasury.”
Ms Gwenllian warned of the impact of tax hikes on the voluntary sector and outsourced services, piling more pressure on council budgets.
She said: “I’ve spoken with three councils … but one said that this will cost an additional £2m in terms of internal salaries but £2.5m in terms of the work that is commissioned.
“Another council said £5.4m on the internal, £2.8m on the work that is outsourced – another said £8m internal and £3m on the outsourced work. There is a lot of work commissioned beyond the local authorities themselves and there is no mention of any support.”
Giving evidence on January 15, Ms Bryant said the UK Government has confirmed it will use the Office for National Statistics definition of a public sector worker.