Programme for Government

Annual Report
May 2012

Introduction by First Minister

I am pleased to present my first Annual Report in the Assembly term for 2011-16. It gives you much more information than ever before: it sets out the progress the Welsh Government is making in delivering the actions in my Programme for Government - actions that we believe will help to tackle the long-term challenges facing Wales; and it gives you access to statistics and analysis on the progress that Wales is making as a country on those long-term challenges. These are things that the Welsh Government is working to influence but cannot deliver on its own. Progress depends on all of us - organisations and individuals - playing our part, and on international and UK-wide factors. The economic and financial climate is very difficult. This makes my Governments commitment to our Welsh account of sustainable development more important than ever - social, economic and environmental well-being for people and communities, embodying our values of fairness andsocial justice. Our Wales Infrastructure Investment Plan for Growth and Jobs, and the steps we are taking to secure investment in broadband, transport, energy and science are crucial to making Wales an attractive business location, allied to the overall environment and quality of life we can offer - andwill also help usmake the transition to a lowcarbon economy. We are transforming our big public services - health,social services and education - to respond torising expectations, while also coping with financial constraints. Our guiding principle is to ensure the different areas of our public services work together to meet peoples needs effectively. This is especially important in our fight to give every child the best start in life, working with families to tackle health and educational inequalities. Departments across the Welsh Government are working together on this priority; and by helping young people into work, we reduce the number of children who grow up disadvantaged by being in workless households.

In all areas, we are working to build confidence inWales future, because confidence in so many Jobs are our priority. We are doing all we can to help ways is the key to success for us as individuals, right now, for instance through Jobs Growth Wales, communities and as a country. But if we are to move by tackling the barriers facing business, by boosting forward, we also need realism about the challenges capital spending as much as we can and by using the we face, what more needs to be done and how long Wales Infrastructure Investment Plan for Growth and action needs to be sustained if we are to achieve Jobs, whichwas launched earlier in May, to attract success. This Annual Report contributes hard evidence private capital investment. Our scope for action would to help inform discussion and debate on the key be much greater if the UK Government accepted the issues. I commend it to you. case for the Welsh Government to have the power to borrow for capital investment within defined limits. We need to be clear however that the action we can take on the economy will mainly pay off in the long-term, by strengthening Wales economic fundamentals: by raising our education and skills levels and making places in Wales highly attractive forbusiness and highly-skilled people: since 1999, the % of working age adults qualified to level 2 and above, and level 3 and above, hasrisen faster in Wales than in any other country in the UK; but we were starting from a low base and are still behind England and Scotland. ThisReport sets out how we are redoubling our efforts to move ahead.

Rt Hon Carwyn Jones AM First Minister of Wales

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Contents

Chapter 1: Chapter 2: Chapter 3: Chapter 4: Chapter 5: Chapter 6: Chapter 7: Chapter 8: Chapter 9: Chapter 10: Chapter 11: Chapter 12:

Growth and Sustainable Jobs Public Services in Wales Education 21st Century Healthcare Supporting People Welsh Homes Safer Communities for All Equality Poverty Rural Communities Environment The Culture and Heritage of Wales

2 6 8 10 12 13 14 15 16 17 18 19

Chapter 1: Growth and Sustainable Jobs

Long term Challenges
Most but not all high-level indicators suggest that over the last decade Waless economic position relative to the UK has stabilised and may evenhave improved in some respects. This is seen in income indicators, and most clearly in the labour market, where, for example, agap of 5-6percentage points that once existed between employment rates inWales and the UK has been halved over the last few years. Although Wales decline relative to the UK as a whole on GVA per capitaover the last decade is a cause for concern, it is mainly attributable to the part of GVA that comes from profits and mixed income. Overtheperiod up to 2007/08, this may be due in part to the strong profits of financial firms located in the South East of England. There is also evidence that, over the longer term, the gradual restructuring of the economy in Wales away from very capital intensive businesses may have played a role. There is a general consensus that this legacy and the effects of the transformation arestill being felt. The picture painted by GVA therefore needs to be seen in the context of the more positive and perhaps balanced picture painted by other indicators, particularly those which reflect the labour market, and which may be more directly linked to peoples well being. Whilstrecognising the long term challenges, it is important, for business confidence and for trade and for individual aspirations, to recognise our improved relative position on household income and employment, which have moved towards the UK average Since 1999, the % of working age adults qualified to level 2 and above, and the % qualified tolevel 3 and above, have both increased faster in Wales than in any of the other UK countries. ButWales was starting from a low base and the % of working age adults qualified to both these levels is still below England and Scotland. The greatest skills gap is at level 3 (equivalent to Alevels and higher apprenticeships).

Our Actions
The main influences on the Welsh economy in the short to medium-term are the global economy and the monetary and fiscal policy set by the UK Government. We have taken clear actions to address some of the real difficulties faced as a result of the economic climate and are doing all we can as a devolved Government to: Support the economy and business - for instance by improving access to finance, supportingmicrobusinesses and start ups, priority sectors and Enterprise Zones. Improve Welsh skills for employment for instance through Jobs Growth Wales and YoungRecruits Programme. Improve our infrastructure for instance through next generation broadband and transport. Create a sustainable, low-carbon economy, through for instance Energy Wales - a Low Carbon Transition.

Supporting the economy and business

Access to finance We created a 40m Wales SME Investment Fund to provide loans and equity investments, from20,000 to 2m. The Wales Economic Growth Fund provided immediate support for investments. 29.8m has been awarded, levering 91m in capital investment, creating more than 1700 jobs andsafeguarding more than 1500. We announced the 100m Welsh Life Science Fundto make Wales an even more attractive place to invest. It is one of the biggest commitments made by any country in a fund of this type. Economic Stimulus In November 2011 we announced an economic stimulus package of 38.9m supporting skills, apprenticeships and capital projects tostimulatedemand. Last year, the Business Information Helpline dealt with 24,687 enquiries and the website was visited366,085 times. The Regional Centre Service Centres provided information to over 16,000 businesses/individuals and helped create and safeguard over 700 jobs. The Business Start Up Service provided support to over 4,000 individuals resulting in the creation of 660 enterprises and1,752 jobs. We also made progress on all actions identified inthe Youth Entrepreneurship Strategy Action Plan. Trade and investment We made a step-change in our approach to trade and investment with the establishment of a Major Projects Team to lead upon high quality inward investment and trade activity.

We have developed an extensive overseas trade programme to boost exports into our key markets. Earlier this month, we announced another 44m of Last year our export figure increased by 13.8% additional capital investment in 2012-13 to boost over the previous year, and it is important that growth and jobs. wecontinue to build on that momentum. Procurement The value of contract opportunities advertised through Sell2Wales rose further last year, helpingbusiness sell to the Welsh public sector. We have implemented the recommendations of theBarriers to Procurement Opportunities report and trained 500 staff across the Welsh publicsector. The construction sector panel is looking at the issues for procurement in the construction sector. Business rates An independent task and finish group on business rates policy in Wales will complete its work in May2012. Micro-business and business start up The Micro Business Task & Finish Group recommendations are being taken forward. Forexample, a 6m Micro-Business Loan Fund willsupport at least 300 businesses. Sectoral approach We expanded the sectoral approach to nine prioritysectors, each with a private-sector led panel advising us on the way forward. Six panels have published a summary of strategic priorities www.wales.gov.uk. Enterprise Zones We have announced five Enterprise Zones at Anglesey, Cardiff, Deeside, Ebbw Vale and St Athan, which are now operational and a further two Enterprise Zones in Snowdonia and Milford Haven have been confirmed. We are also exploring the potential for Local Growth Zones in Powys. Science We launched Science for Wales - a strategic agenda for science and innovation in Wales withan additional 50m for Science R&D inWelshuniversities over the next five years.

Improving Welsh skills for employment

Since 1999, the % of working age adults qualified to level 2 and above, and the % qualified to level 3 and above, have both increased faster in Wales than in any of the other UK countries. ButWales wasstarting from a low base and the % of working age adults qualified to both these levels is still below England and Scotland with the greatest skills gap at level 3. Level 2 (equivalent to 5 GCSEs at gradeA*toC) isgenerally the lowest level of attainment recognisedby employers and a key determinant inanindividuals ability to progress tofurther education. Level 3 (equivalent to Alevels) isthe threshold whereby individuals escape from lowskilled, low paid work that would often see themmove in and out of minimum wage employment. Key progress during this last year includes: Jobs Growth Wales has been piloted successfully and the full programme was launched in April2012. It aims to create 4,000 job opportunities annually across Wales for unemployed young people, aged 16-24, givingthem work experience for a 6-month period. Skills Growth Wales, a programme to help growingbusinesses, in key priority sectors, up-skill their workforce and support the creation of new employment opportunities was extended inJanuary2012. The Young Recruits Programme has been extended and the original target of 1000 has been almost doubled with 1,995 direct employer applications for support. The Traineeships Programme and Steps to Employment Programme aimed at young people and adults were implemented in Wales in August2011. 2,000 places on the Pathways to Apprenticeship scheme to ensure that young people are still able to access high quality skills training in the absence of apprenticeship places. Help for adults to gain basic skills has been remodelled with the launch of Essential Skills inthe Workplace in February 2012.

We are implementing the 2011-2015 Youth Engagement and Employment Action Plan to help young people engage with learning. The Review of Qualifications was launched in September 2011 to consider how we can achieve the vision of having qualifications that meet the needs of our young people and the Welsh economy.

Improving our infrastructure

We have published the first Wales Infrastructure Investment Plan, setting out clear investment priorities, detailed sectoral plans and a pipeline of projects for the next three years. We are working to ensure that all residential premises and all businesses in Wales have access to Next Generation Broadband by 2015, withthe ambition that 50 per cent or more have access to 100Mbps. The competitive process to secure a provider(s) is well underway and we expect deployment of infrastructure to begin fromsummer2012. We have processed 2,144 applications under our Broadband Support Scheme to help those with sub-2Mbps connectivity obtain a broadband connection using the most appropriate technology available. In December we published the reprioritised National Transport Plan setting out a programme of investment in transport infrastructure, includingroad and rail, as well as significant investment in sustainable transport to ensure thatthe transport system inWales works better tohelp tackle poverty, increase well-being and assist economic growth. In 2011/12 we let contracts worth over 180m to take forward road infrastructure investment and spent 100m on maintaining the Motorway and Trunk Road Network for which it is directly responsible. The % of the trunk road network requiring maintenance has fallen substantially overthe last decade We have continued to invest in partnership with Network Rail to improve existing rail services and are working closely with the UK Government to secure investment to electrify Valleys lines and railservices from London to Swansea.

 Over the last two years we have invested 21m todevelop our Sustainable Travel Centres. We are considering the potential benefits of developing a city-region approach to development.

The Waste Procurement Programme is well advanced in developing further projects that will drive progress to meet our ambitious Zero Waste targets. arbed, our domestic energy efficiency scheme, isinvesting in improvements to the performance of our housing stock in Wales, and Nest is helping to tackle fuel poverty. Since November 2011 we have committed an additional 6.6m to arbed. We expect this to lever in an equivalent amount of funding from energy companies and Registered Social Landlords, helping approximately 1500 homes to benefit from energy saving improvements.

Creating a sustainable, low-carbon economy

We are driving progress towards a low carbon economy: Energy Wales - a Low Carbon Transition published in March 2012 sets out how we will attract investment in low carbon and renewable energy.

Between 2004 and 2010 total energy generated The development of the Sustainable Travel Centre from renewable sources has increased by nearly initiative is designed to deliver better integrated 60%. This has been driven by an increase in transport networks whilst promoting health and generation from wind, wave and solar sources well-being. (anincrease of more than 80%) and the increase We are providing ongoing support and advice to in other thermal sources (an increase of more businesses on energy efficiency and low carbon than 100%). The increase in generation from these opportunities. renewable sources has more than made up for the fall in generation from hydro.

Chapter 2: Public Services in Wales

Long term Challenges
Public services face twin challenges of rising demand/expectations forservices and falling budgets. Reform is therefore essential. We are committed to working with public service partners to support the delivery of efficient, effective and accessible public services. This has contributed to improvements in the service areas set out in other chapters.

Our Actions
We are taking practical action to drive this approach by helping organisations toreleaseefficiency gains through unlocking innovation and promoting change, working with leaders and employees. Partnership, better services and lower cost arethe consistent threads that tie together everything we do on the full range of publicservices. We have introduced the Local Government Byelaws (Wales) Bill to cut bureaucracy for local authorities who want to develop and enforce byelaws.

Strengthening local democracy

The Local Government Democracy White Paper was published in May and will be followed by a Bill to implement the recommendations of the Our local authority spending settlement Mathias Review of the Local Government Boundary provided over 4 billion to support service delivery. Commission for Wales and other proposals to Inthe context of the UK financial reductions we strengthen local scrutiny. have provided increased funding, demonstrating our commitment to protect vulnerable people. We will continue to implement the provisions Wehave also protected spending on education of the Local Government Measure 2011 and social services. which will make a significant contribution to strengthening local democracy and encouraging awide range ofpeople to stand for election. Over 30 staff across the Welsh public sector are training to professional qualifications in procurement The National Survey for Wales began in January 2012. It will be a key source of publically-available information on the views of people about public services in Wales.

Ensuring that our funding supports stronger and more effective service delivery

Supporting continuous improvement ofpublic services

A new Centre for Leadership and Excellence isontrack to be fully working by 2013, helping todevelop the public service leaders of tomorrow. Our Green Paper Working Together for Wales- the Public Service Workforce published in May proposes action to achieve astepforward in management of our public service workforce, including legislation.

Securing effective collaboration

A new Partnership Council for Wales will provide the collective political accountability and leadership to deliver the programme of public service reform.

 Our Compact for Change sets out a programme ofreform across a wide range of services. A new Public Service Leadership Group is driving reform and spreading good practice, focusing on regional collaborations, realising efficiencies from streamlining organisations, sharing assets and better procurement, and developing new services to protect our most vulnerable people.

We have set out a clear Footprint for Regional Collaboration in public services, based on 6regions which build on local health board areas. We have prepared guidance to simplify the statutory partnership and planning regimes, rationalising four plans into one. This will cut bureaucracy.

Chapter 3: Education
Long term Challenges
Educational attainment at key stages 2 and 4 has been steadily rising since 2006/07 but there are unacceptable levels of variation across Welshschools and achievement by pupils entitled to Free School Meals (FSM) hastended to increase more slowly. International comparisons suggest thata big change in the educational attainment of pupils in Walesis required if we are to compete globally. The development of children in theirearly pre-school years is crucial. At age 19, the improvement in outcomes at both Levels 2 and 3 has levelled off over the last three years for which data is available, andfurtherwork is needed to drive up learner outcomes. Level 2 qualifications are animportant benchmark for the skills people need for basic entry into theworkforce. The proportion of school pupils being educated through the medium of Welsh continues to rise and reached over 16% in 2010/2011, which is very encouraging.

Our Actions
We are implementing a comprehensive 20-point School Improvement Action Plan to deliver the necessary rise in attainment, with a particular focus on improving literacy and numeracy and reducing theimpact of deprivation on education achievement. Key developments in the last year have increased the accountability and challenge in the system while building on best practice, and include: development of literacy and numeracy frameworks; improving teaching practices through Professional Learning Communities and the School Effectiveness Framework.

Other developments include completing the introduction of the Foundation Phase in primary schools. We have raised school budgets 1% above the amount we received from the UK Government reshaping of school improvement functions around and introduced a Pupil Deprivation Grant to help four regional consortia; address the impact of deprivation on attainment. establishment of the School Standards Unit and Secondary school attendance has been increasing but publication of secondary school banding based is still 2 percentage points behind average levels in on wide ranging performance data to identify England. The Behaviour and Attendance Action Plan, strengths and weaknesses and to support those developed in 2011, addresses this priority. schools inneed of targeted interventions; As part of giving every child the best start in life, strengthening of the Estyn inspection framework; weare committed to doubling the number of children benefitting from Flying Start. Local Authorities were legislating to ensure that schools produce and notified of their indicative financial allocations publish school improvement plans; development of a Masters teacher training course inDecember. for introduction from September 2012; Four Further Education institutions have merged creating two larger stronger organisations.

Post16staying-on rates are increasing and the rising success rates in Further Education will help liftattainment at age 19. Action to help young peoplewho are not in education, employment ortraining will also help to do this.

In higher education no student will face increased tuition fees and no Welsh university will charge morethan 4,000 unless they widen access and improve the student experience.

Chapter 4: 21st Century Healthcare

Long term Challenges
Our main challenges arise from increasing long term health problems, theillnesses associated with an ageing population and societal and lifestylechanges. Demand for NHS care is rising and patients expectationsare increasing. Whilst overall life expectancy continues toimprove, improvement is slower in our deprived communities, andhealthinequalities remain a real challenge. At the same time, thefinancial position is tight and we face difficulties in recruiting medical staff in some areas. We therefore need to look at how the NHS organises its services to ensure they are safe and sustainable, and to increase the focus on preventing poor health. In terms of the big health challenges, circulatory disease mortality rates have fallen substantially over the last decade, due to the decline in smokingand improvements intreatment. Cancer mortality rates are also declining. Our challenge is to turn around thetrend in obesity rates to maintain these improvements, and to promote positive changes inthe numbers of adults breaching recommended drinking limits and taking recommended levels of physical exercise.

Our Actions
Our response has three elements: Improving health outcomes by ensuring the quality and safety of services is enhanceddrivingforward Together for Health, our five year vision for better health, better access andpatient experience, andbetter service safety and quality to improve health outcomes. Improving access and patient experience - making continued progress in cutting waitingtimes, andmaking it easier for people to access GP services at times that suit them. Preventing poor health and reducing health inequalities - working with a wide rangeof partners to deliver our action plan for reducing health inequalities Fairer Health Outcomes forAll , andencouraging people to adopt healthier lifestyles.

Improving health outcomes by ensuring the quality and safety of services is enhanced
In 2011 we published Together for Health, our five year vision for better health, better access and patient experience, and better service safety and quality to improve health outcomes.

A range of indicators show how we are improving the effectiveness of the system. We have seen improvements in the rapid diagnosis and treatment of strokes, and a continuing decline in c difficile andMRSA infections acquired in hospital. Thenumber of delayed transfers of care continues to fall. Emergency hospital admissions for chronic conditions - theleading cause of mortality and morbidity in Wales- have also reduced by a total of10% for diabetes, coronary heart disease and chronic obstructive pulmonary disease.

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The NHS Delivery Framework, published in autumn2011, sets clear priorities for the next 12-18 months. We have specific targets for further improvements in the treatment of stroke and cancer and expectations for improvements in cardiac and stroke mortality rates. Detailed delivery plans for eachare being launched this year. Designed to Tackle Cancer in Wales isaiming to achieve incidence and survival rates forcancer comparable with the best in Europe. Wales continues to lead the UK in organ donation rates and we want to save more lives by making further progress. We are well advanced on our commitment to legislate for a soft opt out system oforgan donation.

Preventing poor health and reducing health inequalities

Our action plan for reducing health inequalities FairerHealth Outcomes for All was published in March 2011. We are delivering it through our national public health programmes, and through action in partnership with Local Health Boards. Weare also scoping the need for a public health bill. Allied to this, our Tobacco Control Action Plan published in February 2012 describes how we will help maintain the decline in smoking. TheAllWales Obesity Pathway, issued in 2010, sets a clear approach for the prevention andtreatment of obesity. To tackle excessive drinking, we have extended our Change4Life programme to cover alcohol and continue to implement the Substance Misuse Strategy. Some of the key prevention levers regulation of the food industry, advertising, alcohol licensing and taxation - requireaction by the UK Government. Improving general wellbeing and mental health can also have a significant impact on the physical health of the population and their life expectancy. We have launched Together for Mental Health, a draft mental health and wellbeing strategy for Wales. Giving children the best start in life is crucial to narrowing the gap in life-expectancy. We are driving forward our Maternity Strategy andthe Healthy and Sustainable Pre-school Scheme isbeing rolled out to pre-school settings inpartnership with Designed to Smile, Flying Start, Sustainable Futures, umbrella organisations and localhealth and education departments.

Improving access and patient experience

Access to services is also improving and quicker treatment results in better outcomes for many diseases. Waiting times for patients over 36weeks have improved by over 68% compared to March2011. Within orthopaedics, in March 2011 there were almost 4,500 patients waiting over 36weeks for treatment - in March 2012, this figure stood at 356. Across all specialities, 94% of patients are now waiting fewer than 26 weeks for treatment. We have agreed a phased approach towards extending GP access into evenings and weekends. The first phase during 2012-13 focuses on spreading appointments between 8am and 6.30pm.

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Chapter 5: Supporting People

Long term Challenges
Social care services face significant challenges, including changing publicexpectations, demographic change and financial constraints. Itisnotclear how far the rise in the number ofchildren classed as being in need reflects pressures on vulnerable families caused by economic andrelated factors. Progress is being made in reducing the % of children in care who have more than three placements a year, and the % of 16 and 17yearolds withpathway plans is rising. However,educational attainment among looked after children, and children in need, remainsvery low, and the %of young people who were looked after at the age of 16, andwere ineducation, training or employment on their 19th birthday, issubstantiallylowerthan inEngland. The % of adults using social services helped to live in the community remains high, andbetween 2009 and 201 there has been an increase inthe numbers ofpeople who are able to stay in their own homes through supported housing provision rather than moving to residential care.

Our Actions
Our response to these challenges was set out in our White Paper, Sustainable Social Services for Wales: AFramework for Action. In March 2012 consultation on a proposed Social Services Bill was launched to take forward the transformational change programme outlined in the WhitePaper. We are acting to address the increasing numbers of children in need, and to secure better outcomes forchildren and families. Improving outcomes requires all public services to intervene earlier with children and families through arange of preventative, targeted and mainstream services. Investment of over 400m in family support over the next four years via Families First and Integrated Family Support Services (IFSS) is central to this. By 2013/14 there will be 10 statutory IFSS teams offering a service across Wales. The expansion of Flying Start and the review of Health visiting will also strengthen capacity to support the crucial development of children in their early years. The Welsh Government has provided targeted annual funding of 1m per year for the last 6 years toraise the educational attainment of looked after children. From this academic year we have made available a2,000 bursary for every care leaver who goes into higher education. Turning to services for adults, local authorities are addressing delayed transfers of care by adopting acollaborative approach with Local Health Boards to jointly commission additional placements and tofundthe higher costs of beds for elderly people who are mentally infirm. The increase in supported housing provision for adults is being driven by the Supporting People Programmeand Social Housing Grant programmes. Through Social Housing Grant there has been over 45mspenton Extra Care Housing between 2009 and 2012. Making social care for adults more flexible and responsive to individual needs is one of our priorities. Theconsultation on the Social Services Bill includes proposals to encourage greater uptake of direct payments.

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Chapter 6: Welsh Homes

Long term Challenges
The long-term demand for housing is increasing due to population growthand the trend towards single-person households. The number ofhouses being built has however fallen since 2008 as a result of the general economic conditions and cuts in public spending and is substantially below the level we need to see. The extent to which the WelshGovernment can influence private house building is limited, butithas greater influence over the provision of affordable homes and thenumbers here have risen significantly since 2008 as a result ofadditional investment. Despite the difficult economic climate, and the UK Governments welfare reform programme, the pro-active approach we encourage local authorities to take and the support we are providing to them for local action, ishelping to prevent more homelessness. The number ofhomeless families with dependent children has risen somewhat but is still below the 2008level.

Our Actions
Cuts in our capital budget limit the scope to increase house building directly, but we are working to stimulate house-building through action in the planning system, to release more land; by developing ways to make it easier to release public land for house-building; and by exploring innovative methods of stimulating private investment. The Housing Bill and Planning Bill will support this. Proposals for theHousing Bill and more action to increase the supply of homes were published in a White Paper inMay2012. In 2011/12 the Welsh Government made available an additional 18m to support the Social Housing Grant programme for affordable housing and work on the transfer of public land for affordable housing isaccelerating. The Welsh Housing Partnership, launched in September 2011, will help to sustain progress, using an innovative model of funding The number of empty homes brought back into usebyaction by local authorities has increased. Thenew national co-ordinated programme Housesinto Homes was launched ahead ofschedule inFebruary 2012. Pioneer projects have been identified to help develop an appropriate model of Co-operative Housing/ Mutual Home Ownership. Local Authorities have received funding to mitigate the impact of housing benefit reform and funding has also been confirmed for bond schemes and other services to ease peoples access toprivate rented accommodation. To support progress towards the Welsh Housing Quality Standard we have made 42.2m available to support borrowing to fund improvements and granted 60.4m to local authorities to fund major repairs. Thiswill help increase the proportion of housing meeting the Standard. Nest, the new fuel poverty programme, is targeted on the most inefficient properties and those likely to be vulnerable to fuel poverty. During 2011/12 Nest delivered energy improvement packages to 3,500householders likely to be vulnerable to fuel poverty living in highly energy inefficient properties andprovided energy savings advice to 13,500 householders. It is also providing opportunities for small andmedium sized businesses and is supporting apprenticeships.

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Chapter 7: Safer Communities for All

Long term Challenges
There are real signs that intensive action on youth offending is paying off. Since 2008/09, thenumber of first-time entrants to the youth justice systemin Wales has fallen by more than half, despite the economic situation. Reoffending rates for young people are declining more slowly, butthis isstillpositive given that the fall in the number of first time entrants meansthat the youth offending system has a higher concentration of youngpeople with complex needs and more persistent patterns of offending.Moregenerally, the incidence of recorded crime continues to decline, although perceptions ofanti-social behaviour have risen slightly. Although alcohol related deaths have risen for much of the decade they havefallen since 2008. We are continuing to work closely with partner agencies and service users to tackle theincrease in drug deaths. The incidence of fires attended by the fire service, and casualties from fires, have declined formost of the last decade although this was not maintained this last year. Road casualty rates have been on a declining trend.

Our Actions
Recruitment of additional Community Support Officers has begun ahead of time and 165 were either deployed or in training by April 2012. Recruitments of some part time officers mean that in total 545 officers will be deployed by September2013. Our Safer Communities Fund spent 4.5m in 2011/12 via Community Safety Partnerships, on projects aimed atdiverting young people away from crime and antisocial behaviour. Through the Right to be Safe Strategy, and 10,000 Safer Lives project we are joining up public services to help victims of domestic abuse and violence against women to reduce incidents and numbers of repeat victims. This will help inform the development of new legislation to tackle domestic abuse and violence against women. The action we are taking on substance misuse is on track. People are getting faster access to assessment and treatment and in 2010/11 over 50% of those leaving treatment had a positive outcome profile. Drug-related crime has continued to fall. The Welsh Government continues to invest over 50m a year to implement the actions within the 10 year substance misuse strategy for Wales Working Together to ReduceHarm. We will continue to lobby the UK Government to take more robust approach to tackling the pricing, availability and advertising of alcohol. We know that these are important factors which influence alcohol consumption, particularly amongst young people. There have been improvements in outcomes since fire and rescue services were devolved in 2004. Thenumber of fires stood at 676.6 (per 100,000 population) in 2010/2011, less than figures for Scotland, but greater than those for England. Inrecent years progress has levelled. The number of people injured in fires rose in both Southand North Wales during 2010/11 and decreased in other areas. Deliberate fire setting remains aparticular concern for South Wales. The recent publication of the Fire and Rescue National Framework sets out how we expect Fire and Rescue Authorities to work to achieve improvement.

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Chapter 8: Equality
Long term challenges
There are deep, entrenched and long-standing inequalities within society. These inequalities are aggravated by UK Government decisions on public expenditure and welfare reform. Thereis a strong link between these inequalities and poverty; peoples life chances are often heavily shaped before birth and in their early years. The pay difference between men and women has been gradually narrowing,and the pace has increased from 2008. Education and skills areimportant factors in how people fare in thelabour market, and disabledpeople are significantly less qualified than others. Educationalattainment among pupils with Special Educational Needs improved slightly between 2009/10 and 2010/11 but is still well below average.

Our Actions
The Welsh Government was the first in Britain to bring in specific equality duties to help devolved public authorities meet the general equality duty in the Equality Act 2010 - to eliminate discrimination, advance equality of opportunity and foster good relations. These specific duties came into force in April2011. In line with these duties, in April 2012 we published our Strategic Equality Plan setting objectives for tackling inequalities based on sound evidence and extensive engagement, and the actions we will take, across all Welsh Government departments, to meet them. These include addressing inequality in education, employment and skills outcomes; reducing health inequalities; increasing the provision of affordable childcare; and addressing underrepresentation in public appointments. Other progress this year: We have acted on findings from evaluation of Community Cohesion funding and from April 2012 we are funding a new network of Community Cohesion Officers working with local authorities. We have established better arrangements for engaging with partners through the new Womens Equality Network and the new Race Forum. In September we published a Framework for Action on the issues faced by Gypsy and Traveller families. The number of authorised Gypsy and Traveller sites has increased and changed funding arrangements have encouraged more applications from Local Authorities for new or improved sites. In July we published a Strategy and Action Plan forasylum seekers and refugees.

Chapter 8 of the Programme for Government We are well-advanced in developing a Framework willbe updated next year to build in the objectives for Action for Independent Living for disabled and actions in the Strategic Equality Plan, with people, based on extensive engagement. appropriate indicators to track progress. Poverty and inequality are closely linked and our Strategic Equality Plan and Tackling Poverty Action Plan will dovetail.

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Chapter 9: Poverty
Long term challenges
The recession has aggravated poverty, and many of the decisions the UK Government hasmade on public expenditure and welfare are hitting incomes of the poorest in society. The downward trend in the % of children in relative income poverty evidentuntil 2006 hasbeen reversed; but since 2009 the % of children living inworkless households has fallen 1.2percentage points to 18.8%and thegap with England narrowed. Qualification levels amongst working age adults in Wales continue toimprove but about aquarter lack qualifications at level 2 (the basic entrythreshold for employment). The % of 16-18 year olds who are not in employment, education ortraining (NEET) hasremained around 10-12 per cent. In recent years the%amongst 19-24 year olds has increased.

Our Actions
With our support, over 6000 financially excluded Poverty is heavily influenced by international and adults have joined Credit Unions and gained UK-wide factors. The action we can take will bear fruit access tofinancial products across Wales (figures mainly in the longer-term. In the light of the impact of covering fifteen months to December 2011). UK Government welfare reforms, we are redoubling our efforts to combat rising poverty. We will publish Jobs Growth Wales has been piloted successfully. aTackling Poverty Action Plan shortly. Progress during It aims to create 4,000 job opportunities annually this last year includes: across Wales for unemployed young people, aged 16-24, giving them work experience for From April, Communities First is working in a6-monthperiod. a new way to tackle poverty in communities. Concentrating on the 10% most deprived The Young Recruits Programme (YRP) has been communities in Wales, it will have an increased extended and the original planned provision of emphasis on helping the most vulnerable interms 1000hasbeen almost doubled. of education, employment and health. Help for adults to gain basic skills has been There has been action to mitigate the impact of UK remodelled with the launch of Essential Skills Government Welfare reforms through consultation inthe Workplace inFebruary 2012. and continued close work with our partners on We are implementing the 2011-2015 Youth Welsh successor arrangements to Council Tax Engagement and Employment Action Plan to help Benefit andthe discretionary Social Fund due to young people engage with learning and enter the bedevolved in April 2013. labour market. An extra 55m has been allocated to support The educational maintenance allowance scheme the expansion of Flying Start over the next three has been continued and university fee plans years, doubling the number of children benefitting. scrutinised toensure access to further and higher Weare targeting the expansion on concentrations education is widened. of families with 0-3yearolds living in Income Benefit households. During 2011/12, Nest delivered energy improvement packages to 3500 householders likely to be vulnerable tofuel poverty, and provided energy savings advice to 13,500 householders. 16

Chapter 10: Rural Communities

Long term challenges
Household incomes are an important indicator of economic well-being andthey have been improving relative to Wales as a whole for a number ofyears. The % of rural premises with access to basic broadband is very close to the% for premises inurban Wales, although the % with access to high speed broadband is much lower. Accessibility is a key issue for many people living in rural areas, although satisfaction with busservices in rural areas is actually higher than in urbanWales.

Our Actions
We are developing a more focused set of priorities to take forward key elements ofthe Food Strategy to grow the food and drink industry. Value Wales is continuing to promote goodpractice in food procurement to the public sector via the on-line Food Procurement Route We have strengthened rural bus services by launching Planner. the TrawsCymru network and the new high quality We are investing in quality tourism businesses and marketing Wales quality visitor attractions, T4 service. We are currently carrying out a strategic accommodation and food industry more effectively. evaluation of the benefits of investing in further The Tourism Investment Support Scheme has been longer distance strategic bus corridors across Wales, extended and expanded. with a view to incorporating other key strategic corridors into the emerging TrawsCymru network. The % of Common Agricultural Policy (CAP) direct Since the start of the Bwcabus Service, the total payments made before Christmas rose to nearly number of passenger journeys has increased and 88%in2011. the service has been extended to serve other rural Our work to tackle bovine TB has continued over this communities inCeredigion andCarmarthenshire. last year. For the 2010 testing year, all herds had been Delivery of the Rural Development Plan is in line with tested by the end of May 2011. For the 2011 testing established targets. 38.7m has been committed year, 98.8% of officially TB-free cattle herds hadbeen tocapital investments in added-value food and tested by the end of December 2011. The data shows non-food processing, resulting in total investments a very high level of compliance with annualTB of 106min the agriculture and forestry sectors testing, which alongside other measures, works to supported by a further 25m of support for coaddress cattle to cattle transmission. TheGovernment operation initiatives across the supply chains. announced in March 2012 that it will be developing the use of vaccination to protect against infection in the badger population. The procurement process for Next Generation Broadband in Wales is well advanced and the contract will be awarded in 2012. Meanwhile, the Welsh Governments Broadband Support Scheme isinplace and is addressing availability of 2Mbps services.

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Chapter 11: Environment

Long term challenges
Many of the indicators on long term challenges are moving in the right direction through targeted investment, but there is no cause for complacency. We have made striking progress over the last decade on theproportion of municipal waste that is recycled or composted. However,predicted climate change means that pressure on water supplies and flood risk will increase and present challenges for meeting the future resilience of our environment and natural resources.

Our Actions
We have moved from an approach mainly based on regulation to one where we are making investment inour environmental infrastructure, levering private capital where appropriate: the Waste Procurement Programme is well advanced in developing further projects that willdriveprogress to meet our ambitious Zero Waste targets; Energy Wales - a Low Carbon Transition published in March 2012 sets out how we will attractinvestment in low carbon and renewable energy; arbed, our domestic energy efficiency scheme, is investing in improvements to the performance ofourhousing stock in Wales, and Nest is helping to tackle fuel poverty; We are complementing this investment by developing an integrated approach to the management of our natural environment that prioritises future resilience. New natural resource planning will provide a clear picture of our priorities and aspirations for the use of Wales natural resources. Proposals were set out in Sustaining a Living Wales our Green Paper. Our work to establish a Single Environment Body in Wales by 1 April 2013 will support the conditions for a more streamlined and integrated approach to environment and natural resource management.

River catchment flood management plans have been agreed; local authorities are preparing local flood risk management strategies and shoreline the flood risk management programme is doubling management plans are nearing completion. the support for communities at risk from flooding. Water companies water resource management plans will be published shortly. We will be reviewing take-up of Glastir so that it supports our Natural Resource Plan effectively.

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Chapter 12: The Culture and Heritage of Wales

Long term challenges
Progress is being made on many fronts. The % of adults participating in artsactivities has risen in recent years, and visits to Cadws staffed monuments are gradually rising. Visits to local public libraries, the National Museum of Wales and the National Library are rising even while they expandtheir digital services. The challenge remains to encourage access toculture, heritage and the arts from all socio-economic groups. The % of 13 year olds assessed in school through the medium of Welsh asa first language continues to rise, and there are encouraging signs of thisfeeding through into post 16 education. However the overall %ofpeople able to speak and write Welsh is broadly flat, as is the % of5year olds able to speak Welsh fluently at home. Encouraging people to take regular physical activity remains a big challenge. The proportion ofadults taking part in sport or active recreation fell between 2005 and 2009.

Our Actions
As part of the Creating an Active Wales Action Plan, we are investing in community sport and building stronger links between school and club sport. Our free swimming programmes now emphasise structured activities to help more young people to swim and encourage them to participate more regularly insport and physical recreation throughout their lives. The launch of the completed Wales Coastal Path in May 2012 expands opportunities for healthy holidays andrecreation. We continue to strengthen the place of Welsh in everyday life. The Welsh Language Strategy ALanguage for Living was launched in March 2012 and in April the Welsh Language Commissioner started work with new powers. In March 2011, YColeg Cymraeg Cenedlaethol was established to promote higher education through the medium of Welsh. We are working with Rural Housing Enablers to provide more sites for rural affordable housing, tohelp sustain Welsh speaking communities. Cadw have taken many initiatives during 2011 to encourage local communities, including young people and those who do not think heritage is for them, to understand and enjoy their local heritage. Thiswork will develop further in 2012, with Cadw providing leadership to the heritage sector. CasgliadyWerin Cymru/Peoples Collection Wales is on track to complement this by creating new opportunities for shared appreciation of our heritage on-line. The % of people attending arts events who are from under-represented groups has been rising since 2006, and Arts Council Wales is putting more emphasis on supporting organisations to promote active participation in the arts. Young Creators, the new ACW strategy for children, young people and the arts was issued in November 2011. Recent years have seen an increase in use of public libraries following a dip during 2007 to 2009. Grantswere allocated in March 2012 to support greater collaboration between libraries in support of the new strategic development framework for WelshLibraries Libraries Inspire, launched in November 2011. 19

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