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A Well-being Economy

We will make it our mission to help transition Wales to an economy that puts people and planet first. As a result, governments at all levels, businesses, and communities, are making this happen. 

a well-being economy

Future Generations 2025: Recommendations

  1. Welsh Government should identify key sectors where the private sector falls short in implementing the Real Living Wage – and develop plans to implement the Real Living Wage with businesses in these sectors.
  2. The Welsh Government should ensure all businesses receiving Welsh Government support meet a standard set of commitments aligned to the Well-being of Future Generations Act. This should include Real Living Wage accreditation as a baseline requirement.
  3. Welsh Government should set a target to double the size of the social business sector in Wales by 2035 and continue support to Social Business Wales and Social Investment Cymru to achieve this.
  4. Welsh Government should work with the wider public sector to launch a Co-operative Development Hub and support social enterprises in expanding into public and private sector supply chains.
  5. Welsh Government should urgently develop an action plan by 2027 to ensure Wales has the skills to achieve a just transition to a low carbon well-being economy, and at the same time improve post-16 educational outcomes and reduce inequalities.
  6. Welsh Government should establish a commission to examine artificial intelligence’s impact across public services, workforce planning, and digital infrastructure, and set out a clear national direction for ethical and responsible artificial intelligence deployment.
  7. Welsh Government’s economic mission and all four regional economic strategies of Corporate Joint Committees must fully embed the Well-being of Future Generations Act as the framework for designing economic development strategies and in implementing and measuring progress.
  8. By 2027 all public sector organisations must commit to a plan on how they will achieve Real Living Wage accreditation.
  9. Welsh Government and public bodies should ensure every community in Wales has access to a local repair and re-use hub by 2035.

procurement

Public procurement is outlined as one of the areas where applying the WFG Act can deliver the most impactful change. Each year, public bodies in Wales spend over £10bn on goods and services – this spending can shape a more equal, prosperous, globally responsible Wales.

Our work has consistently highlighted that procurement must move beyond short-termism, and instead deliver long term economic, social, environmental and cultural well-being.

In the Future Generations Report 2020, procurement was identified as an underused lever for change. Leadership involvement, resources, and capacity, along with a complex landscape were identified as key challenges for responsible procurement.

The Section 20 Review – “Procuring well-being in Wales” (2021) provided a deeper assessment. It found that:

Well-being goals are not yet fully embedded in procurement processes
Skills, confidence and tools need strengthening
Opportunities to support local economies, fair work and decarbonisation are being missed

The review set out clear recommendations for Welsh Government and public bodies to make procurement more strategic, collaborative and outcomes focused.

In the Future Generations Report 2025, we reinforced the urgency of using procurement to tackle major challenges, including the climate and nature emergencies and economic inequality. While clear progress has been made, stronger and more consistent implementation is now essential.

There has been important progress across Wales:

  • National leadership and support: The Welsh Government has strengthened its approach through initiatives such as Cyd, providing practical support, tools and guidance to help public bodies deliver better procurement outcomes. 
  • Legislative change: The introduction of the Social Partnership and Public Procurement (Wales) Act places new duties on public bodies to consider socially responsible procurement, fair work and long-term impacts. 
  • Public sector innovation: Many organisations are increasingly using procurement to: 
  • Support local suppliers and the foundational economy 
  • Embed well-being in contracts 
  • Promote fair work practices, including the real Living Wage 
  • Reduce carbon emissions through supply chains 
  • Growing collaboration: Public bodies are working more closely to share approaches, aggregate demand and build capability across Wales. 

These developments show a clear shift towards procurement being used more strategically to deliver well-being outcomes. Procurement must be treated as a strategic tool for delivering change in line with the WFG Act to contribute to our vision for a well-being economy that supports people and planet.