The National Library of Wales is in “denial” about the threat of potential funding cuts, a report has warned. The Aberystwyth-based library’s four-year plan is reliant on continuing levels of Welsh Government funding and an additional £1m income a year. An assembly committee said this and a generous pensions scheme was putting its financial stability at risk.
The report, by the Public Accounts Committee, fears the library has not set out a firm plan of what services may have to be cut or lost of funding cuts are made. The committee said this was indicative of a “degree of denial” about the declining levels of public spending and that the library was “not focusing on what action it needs to take”.
It comes after a Wales Audit Office report raised similar concerns about the pension scheme and the future viability of the library back in 2016.
Stuart Price, Partner and Actuary at Quantum, gives his thoughts…
“Compared to the UK as a whole, at the current point in time the National Library’s pension scheme is not that poorly funded.
“However, I understand the committee’s concerns as to whether the pension scheme is sustainable in the long term, especially given its size.
“Unless changes are made to the pension scheme I would expect the 27% of salary [cost to the library for providing the pension] will increase in future years.”
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