University funding crisis spreads, with more cuts announced

Martin Shipton

The funding crisis affecting Higher Education in Wales has intensified, with more universities announcing significant cuts.

Bangor University aims to cut about 200 jobs to make savings of £15m, while the University of South Wales (USW) plans to cut 90 jobs.

Bangor’s Vice Chancellor Professor Edmund Burke said the drop in international students, a rise in costs and the UK government’s changes to national insurance had left them needing to make “unprecedented” changes.

At the end of January Cardiff University announced plans to cut 400 jobs and close five Schools, including Nursing and Music.

Non-academic staff

Bangor University has around 10,000 students and is thought to have around 650 academic staff members, although the voluntary redundancy scheme will be offered to non-academic staff too.

“These sector level challenges are very significant for us,” Prof Burke said.

“In autumn 2024, our student intakes were smaller than in 2023, falling short of our budget target. Our home undergraduate intake was 7% smaller and, without medicine, was down 11%.

“Our international intake was also smaller, with our September international postgraduate intake around half the size of the 2023 intake.”

Prof Burke said in the email that though universities are able to increase fees for incoming students to £9,535 from 2025/26 onwards, “there is no agreement for future inflation adjustment to the amount of money we receive per student”.

He added: “UK universities have been increasingly reliant on international income to make up for the shortfall from home fees not increasing by inflation. The UK Government’s action to reduce the level of immigration has led to a fall in international students coming to study in the UK.”

He said the new UK Government did not seem to be planning to reverse these changes.

‘Home students’

Prof Burke added: “Some high-tariff universities appear to have responded to the fall in international student intakes by reducing their entry grades and taking more home students. This has reduced the size of the pool of students coming to other universities.”

To cut costs, he said the university had already moved staff out of some buildings and these are to be sold.

“While we must make some difficult decisions, I believe that by successfully implementing our plans, we will restore the university to a stable and sustainable position,” he said.

The University of South Wales (USW) also announced it will be cutting 90 jobs, issuing a statement that said: “USW is not exempt from the financial challenges facing the wider higher education sector.”

Several courses will be closed “after all current students have completed their studies” and it will withdraw from some research topics to focus on areas of “crime, security and justice; health and wellbeing; sustainable environment; and creative innovation”.

It said it will “look to limit compulsory redundancies” and will offer voluntary redundancies.

£19 million

On Tuesday Vikki Howells, the Higher Education Minister, announced a further £19m for the sector, despite stating earlier this month that no extra money was available. She suggested universities should make use of their reserves to combat the funding crisis.

USW said that as well as shedding 90 jobs, it planned to cut courses and research. A spokesperson said: “USW is not exempt from the financial challenges facing the wider Higher Education sector. To ensure our future resilience, we are currently working through a programme of transformation which will enable us to continue delivering for our communities.

“We have launched a consultation with our colleagues and trade unions on the workforce implications of a review of our academic provision. This work has reviewed the range of courses we offer and our areas of research.

“As a result, we have made the difficult decision that a small number of our courses will close after all current students have completed their studies. This includes some courses where recruitment has already been suspended. In addition, we will also be withdrawing from some research topics to allow us to more closely align our research activity to four main areas which include crime, security and justice; health and wellbeing; sustainable environment; and creative innovation.”

Pressing financial circumstances

Universities Wales, the body which represents the nation’s universities, said: “Welsh universities are facing some of the most pressing financial circumstances in recent memory and are having to make difficult decisions to try to control costs.

“While universities do hold reserves, these are not as substantial as they might first appear, due in part to the significant accounting adjustments made for pensions. Reserves are not a bottomless resource. Of the reserves that are available to spend, this money can only be used once and therefore does not provide a sustainable solution to the challenges faced by our universities.

“We welcome Tuesday’s announcement from the Welsh Government of additional support [for the sector], which will provide much-needed short-term investment to our universities. However, we remain in a challenging economic environment , and there is a need to tackle the underlying issues to ensure the long-term sustainability of our sector.

“Our universities are national assets for Wales, and we look forward to continuing our constructive dialogue with the Welsh Government to support our universities to deliver economic and social benefits across the entirety of the country.”

Language campaigners

Meanwhile language campaigners said concerns about cuts at universities across the country showed that the university funding system needs to change.

Cymdeithas yr Iaith is calling for the Higher Education sector to be put on a more solid footing with adequate funding, and in particular to consider the value for money in funding students to study outside of Wales. In 2023-24, a total of £553.5m of the Welsh Government’s Budget was spent on living costs and tuition fees for Welsh students who chose to follow courses outside Wales.

Toni Schiavone from Cymdeithas yr Iaith said: “We have serious concerns about these harmful cuts to Higher Education, including the impact on Welsh language education. The First Minister Eluned Morgan has said that this is a matter for the universities themselves, but clearly the current system is failing. Every university is facing serious financial challenges and are increasingly operating like businesses, not as educational institutions serving communities and people.

“One specific thing the Welsh Government can do is consider whether spending an eye-watering half a billion pounds of its annual budget on funding students to study in England offers value for money. This is significant money that should be invested in Welsh universities, especially in times of austerity.”

Welsh Conservative Shadow Cabinet Secretary for Education Natasha Asghar said: “Labour’s National Insurance hike continues to heap pressure on industries across Wales and following the similar news from Cardiff University last month, it was inevitable these pressures would ripple across the Higher Education sector.

“With universities already grappling with a £100m deficit and Labour’s tuition fee increases making Higher Education less appealing for many young people, Labour’s funding cuts and tax hikes are now jeopardising the future of our institutions, their staff, and students.”

‘Severity’

Plaid Cymru spokesperson for Education, Cefin Campbell said: “We cannot overestimate the severity of the situation facing Welsh universities – and yet this Labour Welsh Government continues to turn a blind eye, offering no real solutions.

“Now more than ever, we need real leadership to save the Higher Education sector and defend Wales’ status as a nation of learning, and for staff and students across Wales who will be rightly anxious, wondering if their jobs and courses are on the line.

“I would reiterate today Plaid Cymru’s invitation to the Welsh Government for a cross-party review into Universities’ funding, so that we can all work together as a Senedd to put our universities on a sustainable footing for the future.”

Welsh Liberal Democrats leader Jane Dodds said: “Under Labour, we are seeing the hollowing out of Welsh educational and research institutions. First Cardiff and Lampeter and now Bangor and USW with concerns more will follow.

“Labour’s increase in national insurance contributions will have only exacerbated the financial situation being faced by our universities. We urgently need to see a review into higher education and research funding in Wales.”