An emergency fund is being set up in Wales in case any Welsh university needs bailing out. However, the minister in charge of post-16 education in Wales said they do not currently believe any university is at risk.
Welsh universities have warned of a possible £100m black hole. Our story in August showed Wales has the lowest proportion of 18-year-olds in the UK applying to go to university this year. The gap between applications in this age group from Wales and the rest of the UK is now at a 15-year low. The drop coincided with the Welsh Government raising tuition fees.
Universities across Wales have announced redundancies and the body representing the sector, Universities Wales, warned there were questions over the long-term sustainability of all universities.
A rescue plan is in place for English universities including a £1bn bail-out and fee rises as well as cuts to courses and staff. Vikki Howells, appointed in Eluned Morgan's cabinet reshuffle, was asked about Welsh plans. "I'm aware that the UK Government has this emergency fund that they're bringing into play. Medr is going to have its own funds to support our institutions here in Wales."
Medr, is the name of a new body established in August, which now oversees all post-16 education and research – including colleges and sixth forms unlike its predecessor, Hefcw Ms Howells stressed the emergency funding, which she did not put a number on, would seek to transform the sector as well as bail out universities in financial peril. For the latest politics news in Wales sign up to our newsletter here.
She told the Senedd: "Although we know this is a difficult time, and the sector needs to find ways to reduce costs, we don’t believe there is any Welsh institution that is at risk of failure." Cefin Campbell, Plaid Cymru’s shadow education secretary, disputed that. "I believe, if the [Welsh] Government doesn't take urgent action, we could lose these very special institutions – a number of them. Considering the financial hole that faces many of our Welsh universities, thought to be £100m, the pressure is growing on you as a government to work with our universities to find solutions that will protect jobs, students and our wider economy.”
Mr Campbell said: “Let's not beat around the bush – Welsh universities face serious challenges and the clock is ticking.” Ms Howell, a former assistant head of sixth form at Caerphilly’s St Cenydd Comprehensive, said the pressures are not unique to Wales "but across the UK and even internationally" saying Welsh Government funding makes up about 10% of the total, saying many of the factors fueling financial pressures on universities are outside ministers’ control.
Ms Howells emphasised that universities are autonomous, "so they will be taking their own decisions, albeit with an input and a steer from myself and from Medr". Tom Giffard, the Conservatives’ shadow education secretary, warned the number of people going to university has fallen to a 15-year low.. Mr Giffard shined a light on “stark” statistics showing 33% of 18-year-olds in Wales applied to university this year, compared with 41.9% for the UK as a whole.
He warned of a 1% drop in the number of people pursuing apprenticeships, saying it is worrying to see fewer and fewer people choosing both routes. Mr Giffard, a former teaching assistant in a Welsh-language primary school, raised concerns about Medr’s priorities being too broad, a lack of targets, and unfilled posts.
Ms Howell, who was appointed last month, pointed to non-repayable grants for students from the poorest households but she accepted that participation needs to improve. In a statement to the Senedd on October 15, the minister outlined her priorities for post-16 education including a focus on three Cs: collaboration, cooperation and community.
Urging people to respond to a consultation on Medr’s strategic plan, she described the new arm’s-length body as a major step towards a vision of a more coherent post-16 sector.
