Programme for government 2026 to 2030: New ambition for Wales - Chapter 2: Helping households with the cost of living

“ Throughout this ambitious Programme for Government, we will take action to reduce the financial pressures facing families.”

Families and businesses are feeling the financial impact of decisions taken in Westminster and the consequences of destabilising events across the world. Using the limited levers that we currently have, we will take action to mitigate the impact on Wales, by growing our economy and creating the conditions to fulfil our potential. We will also take immediate action to relieve the cost of living pressures that so many citizens are experiencing and provide them with crucial support to help them through this difficult period and beyond.

At a time when many families are facing significant financial pressures, affordable childcare will reduce pressure on household budgets and make an important contribution to tackling child poverty. Our new Childcare Offer will transform access to childcare, helping more families access high‑quality provision, improving opportunities for children and supporting parents and carers to fulfil their ambitions.

The benefits extend beyond individual families. Communities and wider society benefit from stable and happy families. Our productivity mission will benefit from the economic return on the investment in parents’ skills, training and experience that they will be able to use to full effect in employment or entrepreneurship.

Affordable childcare is a central part of our approach, but it is not the only way we will help ease pressure on household budgets. Throughout this ambitious Programme for Government, we will take action to reduce the financial pressures facing families. Free prescriptions, the continuation of reduced bus fares and free access to museums are just some of the ways we can help with the cost of everyday life.

Every child deserves the best start in life, and no family should be held back by the cost of childcare. Access to affordable, high-quality childcare unlocks opportunities for parents, children and families, and for our wider community and economy.

Children can play, socialise and learn in professional and nurturing settings. Parents have more opportunities to work, study or increase their hours, benefiting family finances and career ambitions. Meanwhile, communities and wider society benefit from greater participation in the workforce and a stronger economy that makes the most of everyone’s skills and talents.

We will:

• deliver a transformative and universal new Childcare Offer for children from the age of 9 months to 4 years, building progressively to 20 hours of funded childcare a week for 48 weeks a year, while maintaining the existing 30‑hour offer for eligible 3‑ and 4‑year‑olds.
• introduce a single, streamlined application system so families can easily access funded childcare.
• expand Welsh‑medium early years provision through our new Childcare Offer.
• work closely with childcare providers to build capacity across the sector and grow the  workforce in order to absorb the expansion.

The social security system provides an essential safety net for people when they need support most. We want a fairer and more compassionate welfare system that reflects the needs and values of Wales and provides effective support for individuals and families.

Our work to pilot Cynnal, the Welsh Child Payment, is an early step towards that ambition, demonstrating what could be achieved at full rollout when feasible. We will continue to make the case for Welsh control over social security so that decisions about support can increasingly be made in Wales. As we work towards that goal, we will also help people access the financial support to which they are entitled through the current system.

We will:

• improve the Welsh Benefits System to make support easier to access and fit for purpose.
• press the UK government to devolve social security so that we can design and deliver made in Wales social protections that better reflect the needs and values of our people and communities.

Whether renting or paying a mortgage, housing costs have a significant impact on household budgets. A safe and stable home is essential for good quality of life and supporting our ambition for a healthier population.

The quality of housing can also reduce monthly outgoings, as well as bringing environmental benefits. We will relieve some of the pressure on household budgets through our drive to improve housing conditions and security. We will make housing more affordable, reduce vulnerability for renters and ensure that housing costs better reflect local incomes.

We will:

• introduce new measures to strengthen the rights and protections of renters, including fair rents, and we will improve the overall quality of rental properties.
• work towards realising a right to adequate housing in Wales.
• deliver more social housing – at least 20,000 additional social homes by 2030 – and support community‑led housing that meets local needs.
• establish Unnos to enable the delivery of more publicly owned, energy efficient homes.
• expand access to retrofitting by adopting a tenure‑neutral, area‑based approach whilst retaining existing energy efficiency schemes for low‑income households.
• focus on the pace of remediation of properties with fire safety defects.

A fair tax system is part of a compact made between government, individuals and businesses. Tax revenue funds the services that we all rely on to live our daily lives and fuel our ambitions for the future.

As a government we will never take for granted the trust that is placed in us when it comes to making taxing decisions. We are committed to ensuring that revenues are raised fairly and simply, and that taxes from our residents and businesses are carefully spent to deliver for all of us. That principle is never more important than at times like this when we have seen a constant squeeze on family and business incomes.

We will:

• explore ways to make Council Tax fairer.
• use our devolved tax levers to support essential public services, and design our taxes to support our goals, including helping home buying, and reducing waste in landfill.