20 December 2023

'While tough choices have to be made in light of the financial pressures across the Welsh Government portfolio, it is crucial that we be mindful of the serious and urgent issues facing our education system and what the knock-on impact of those issues will be.

‘For universities, we have costs increasing faster than income and a funding system that no longer covers the cost of teaching home students or research and innovation.

‘This is against the backdrop of some of the most alarming participation challenges we’ve seen in many years with fewer Welsh students choosing to enter higher education than at any point in the past decade. The gap in participation between Wales and the rest of the UK is growing.

‘But the risks extend beyond our immediate economic contribution. There are also implications for the learning and employment opportunities that we are able to offer Wales now and into the future, and whether future generations are able to be as qualified and skilled as those who came before.

 ‘We will need to work through the full implications of the budget for our universities and their ability to deliver for communities.’

 ENDS

Notes

  • In our submission to the Senedd’s call for information on the draft budget, Universities Wales set out the challenges facing universities: 
    • Analysis indicates that the fee no longer meets the full costs of delivery in any subject area. Similarly, research only recovers around two thirds of its costs, relying heavily on cross subsidy from other sources. 
    • Expenditure is increasing faster than income for the Welsh university sector.
    • This year has seen fewer 18-year-olds in Wales opt to enter higher education, increasing the existing gap in participation between Wales and the UK. This is against a backdrop of an increased need for higher education provision to cater for projected population growth and a major increase in demand for graduate skills.
    • International recruitment, crucial to the sustainability of universities given the subsidy required to deliver teaching and research, is becoming more uncertain with the UK facing increased competition from other markets, and in the light of changes to immigration policy at UK level.
    • More investment is needed to better support and scale up the research and development base in Wales to help prevent a cycle of low-skill, low-wage and low productivity in Wales, and ensure Wales can secure a proportionate share of UK government investment.
    • Our universities directly and indirectly support a range of public services, from training public service staff such as teachers, doctors and nurses, to providing community facilities and access to free advice and services.