According to the 2006/7 figures, funding has fallen by £1m. However the Welsh Assembly Government claims that combined spending from the NHS, the Health Commission Wales and various boards actually gives mental health services a cash boost, not a cash cut.
Shadow Health minister, Jonathan Morgan, called for a reassessment of funding allocation to the mental health sector.
He said: While I welcome the overall increase in spending on mental health services within the NHS, the cut last year in funding for children and young people is a matter of great concern. By tackling mental illness at an early stage we can reduce the risk of problems in the future.
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