Labour warns Plaid Cymru's £400m childcare promise endangers public sector pay

The choice facing voters in Ceredigion Penfro, Wales’ Labour leader Eluned Morgan has said, is between costed, credible plans - or promises that simply do not add up.
She has warned that Plaid Cymru’s £400m childcare promise risks four years of pay freezes for Wales’ public sector workers.
Labour has stated that new analysis of Plaid Cymru’s spending plans shows their unfunded commitments could mean pay freezes - or even real-terms cuts - for up to 350,000 public sector workers in Wales over the next four years.
That includes nurses in Withybush, teachers in local schools, refuse workers, classroom assistants and council staff - the people communities rely on every single day.
The figures are stark. Wales is set to receive around £410 million in additional funding next year. Plaid’s childcare pledge alone is estimated to cost £400 million annually - before accounting for their wider spending commitments.
Campaigning in Ceredigion Penfro, Ms Morgan said she is hearing strong support for improved childcare provision - but not at the expense of public sector pay.
She warned that Plaid’s plans risk forcing difficult choices at a time when public sector workers are already under pressure from the cost-of-living crisis.
She said: “Plaid are making big promises - but they’re not being honest about the consequences. In the middle of a cost-of-living crisis, freezing public sector pay simply isn’t fair. Responsible government means making choices you can actually fund - and that’s why Welsh Labour has worked with trade unions to begin restoring pay, not cutting it.”
To illustrate the scale of the challenge, a 1% pay rise across the public sector costs around £120 million a year, while a modest 3% increase would cost £360 million - funding which Plaid have not accounted for.
The potential impact would be felt acutely in communities across west Wales, where public services are already stretched.
Wales has developed a strong tradition of social partnership with trade unions, helping to avoid the level of industrial action seen elsewhere in the UK. However, Eluned Morgan cautioned that sustained pay restraint would risk undermining that stability.
She put it plainly:“You can’t spend the same money twice. Plaid have made so many commitments that something has to give - and it looks like it’s the pay of our public sector workers. That would be unfair, damaging for services, and could lead to serious disruption.”
Trade unions have also raised concerns about the implications of unfunded commitments.
Unite Cymru Political Officer Mark Turner said: “Public service workers deserve clarity and reassurance about their future. After years of falling real wages, they cannot afford to go backwards. Without a credible plan, there is a real risk that workers will once again be asked to pay the price.”