Universities facing financial uncertainty over ‘substantial cash hole’

Assistant director of Universities Wales, Gwen Williams, agreed it is a difficult period.

“Universities’ income hasn’t risen with inflation for some time, and we have a funding system in place that doesn’t cover the full cost of teaching domestic students or conducting research,” she said.

“We absolutely need to look at a future funding model that is more sustainable for the sector, and what that looks like is a matter for the Welsh government.”

In a statement, a Welsh government spokesperson said: “We recognise the financial pressure higher education institutions in Wales and across the UK are under, and the cabinet secretary engages regularly with sector leaders on this. 

“We have raised the fee limit for full-time higher education courses in Wales to £9,250 to reflect the increased cost of provision in universities.

“As universities are independent organisations they manage their budgets in a range of ways.

“The Commission for Tertiary Education and Research is closely monitoring the financial position of the higher education sector,” they added.

“We recognise the important role universities have beyond their academia and business activities – they contribute to their local communities and support people across Wales through partnerships and projects.”