Welsh universities receive £18.5m government boost amid financial struggles
Universities in Wales are set to receive an additional £18.5 million in funding from the Welsh Government, with a further £500,000 allocated to attract more international students. This comes as the higher education sector continues to grapple with job losses, departmental closures, and mounting financial pressures. The latest injection of funds brings the total government support for universities this financial year to over £50 million.
According to estimates, welsh universities face a collective deficit of at least £70 million this year. The University and College Union (UCU) has announced plans to ballot for potential industrial action in response to deep budget cuts proposed at Cardiff University.
Government’s statement and purpose of funding
In a statement, the Welsh Government said: “Universities in Wales will be supported by an investment of £18.5 million to help address the challenges facing the higher education sector, along with a further £500,000 to support international recruitment and promotion. The funding will be provided to universities via Medr and is intended to assist with capital costs associated with estate maintenance and digital projects aimed at reducing operational expenses while also improving environmental sustainability. It will also help ensure that facilities remain suitable for delivering high-quality student experiences and world-leading research.”
Additionally, £500,000 is being allocated to the Global Wales programme to continue supporting the international recruitment and promotional activities of Welsh universities. This marks the third funding boost for the sector this financial year. A recent increase in the home tuition fee cap is projected to generate up to £21.9 million in additional income for universities next year, alongside the announcement of an extra £10 million last autumn.
Ongoing challenges and institutional responses
Welsh universities have been severely impacted by rising inflation, a decline in the number of high-fee-paying international students, and largely static home tuition fees. Cardiff University, the nation’s leading institution, is currently consulting on cutting 400 academic jobs and has announced the closure of entire departments, including its schools of nursing, music, and modern foreign languages.
The University of South Wales is expected to outline its cost-saving measures later this week, while all but the University of Wales Trinity Saint David (UWTSD) and Wrexham University have reported deficit budgets, highlighting widespread financial strain across the sector. However, it remains unclear whether the additional funding from cardiff Bay will alleviate the planned cuts, as it is designated for specific areas rather than general financial relief.
Minister for education, Ms Howells, emphasised the importance of universities in Wales, stating: “Universities across wales are anchor institutions in our economy, our communities, and our culture. This funding will contribute to the longer-term sustainability of universities. I have invited all vice-chancellors to a roundtable meeting to discuss the current challenges facing the sector and explore ways to safeguard the future of higher education in Wales.”
The welsh government confirmed that the £18.5 million was sourced from reserves within the second supplementary budget published on Tuesday. The government stated: “This funding has been allocated in recognition of the significant financial challenges facing higher education.”
Sector response and calls for long-term solutions
Recent data from UCAS indicates that welsh universities have defied the UK-wide trend of declining applications, including those from international students. However, Wales now has the lowest proportion of 18-year-olds applying to university among the UK nations, with just 32% opting for higher education.
Universities Wales, the representative body for university employers, welcomed the funding, stating: “This announcement comes at a crucial time for our universities, which are facing some of the most difficult financial circumstances in recent memory. While we appreciate the support, there remains a need to identify medium- and long-term solutions to address the underlying issues and ensure the sustainability of our sector.”
A spokesperson for cardiff university acknowledged the funding but remained cautious about its immediate impact, saying: “We welcome today’s announcement from the Welsh Government. The precarious financial position of many universities in the sector is well-documented. It is too early to determine how this funding will affect cardiff university, but it will be considered in our wider financial context. Additional capital funding to support our estate and digital infrastructure is always welcome.”
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Dr Joey whitfield, president of cardiff UCU Branch, expressed hope that the funding might alleviate proposed job cuts at cardiff university, stating: “Today’s announcement of a £19 million cash injection for the sector in Wales makes it even more difficult for cardiff university’s executive board to push ahead with plans to slash 400 jobs and close entire departments. With its £188 million in accessible cash, along with this promised government funding, cardiff university has no justification for making 400 of our members redundant.”
The UCU branch further urged the welsh government to make future funding conditional on governance reforms and the protection of student access and participation, warning that otherwise, it risked “throwing good money after bad.”
Deio Owen, President of NUS Cymru, also called for a long-term review of university funding in Wales. “If we don’t fix the system now, we will see ongoing cost-saving measures that merely patch up existing issues rather than offering a sustainable solution,” he said. “This funding injection is not a long-term fix. The government cannot simply keep finding cash pots to cover deficits year after year without addressing the fundamental problems facing higher education.”
