Universities in Wales face a £70m black hole amid warnings that there is further gloom to come. The collective deficit of Wales’ eight institutions was revealed by the body representing them as they publish their annual reports against a background of deep proposed cuts at Cardiff University and a "curriculum review" at Swansea.
“There is an ongoing and urgent requirement for government to support Wales’ universities so that they can continue to deliver the economic and social benefits that are felt in every part of the country, “ Universities Wales warned. But the Welsh Government has said it will not stump up more cash.
Cardiff University, which now faces strike action by staff during its 90 day cuts consultation, is not alone in its woes. As hundreds of staff prepare to protest outside the Senedd on Tuesday, vice-chancellors across Wales and the UK say their institutions face combined pressure of inflation, a fall in higher-paying international students, stagnant home tuition fees and increased National Insurance payments. You can get more story updates straight to your inbox by subscribing to our newsletters here.
In a statement Universities Wales said: “Welsh universities are facing some of the most pressing, difficult financial circumstances in recent memory. When USS pension adjustments are taken into account, we expect the most recent financial statements for universities in Wales to show that underlying costs have again increased faster than income, with an expected aggregate underlying deficit for the sector of around £70m in 2023-24.
“It’s important to note that these figures do not reflect more recent pressures, such as increased National Insurance contributions, or the significant shortfall in international recruitment experienced this academic year – both of which have exacerbated the incredibly challenging circumstances our universities are facing.”
Cardiff, Swansea, Cardiff Metropolitan, Aberystwyth, and the University of South Wales have all published their financial reports in the last few days showing deficits to the year ending July 2024 as they warn of continued tough times ahead. Modest surpluses have been posted by Wrexham University and the University of Wales Trinity Saint David, although Wrexham warned there is no room for complacency in its accounts. Bangor has yet to publish its financial report.
Medr, the body tasked with funding and regulating the tertiary education sector in Wales, including universities, described it as “an extremely worrying time for staff and students”. Medr, which replaced the Higher Education Funding Council Wales, said “protecting the interests of learners” and ensuring the system “serves the needs of Wales now and in the future” are among its priorities” and insisted it will “ensure the Welsh Government is fully apprised of the position across the tertiary education sector”.
Wales’ higher education minister Vikki Howells has said there is no more cash available for universities. Professor Paul Boyle, chair of Universities Wales and Vice-Chancellor of Swansea University, told the BBC he doesn’t think any universities in Wales will shut but admitted he’d never seen a financial situation like this.
Below are the deficits and cuts outlined by universities in Wales in their annual reports July 2023-24 published in the last few days. Not all have provided their exact deficit figure. Most warn of more financial pressure in the year ahead.
Aberystwyth University
£8.1m deficit in the year ending July 2024. The university has shed 101 jobs since opening a voluntary severance scheme last year.
The university launched a “transformation programme” last year including a voluntary severance programme and offers to staff to cut their hours or working weeks, taking career breaks or flexible retirement to help reduce spending.
The university has said it wants to mitigate against compulsory redundancy with its cost cutting programme and currently has no plans to close any of its schools or departments.
A spokesperson said Aberystwyth had a surplus of £29.9m in the year to July, but this dwindled to an £8.1m deficit when USS pension payments and one-off payments were taken into account.
The university’s annual report says: “Reductions in income and increases to costs resulted in a deficit operating position for the academic year. Savings plans were put in place to mitigate these factors and realised significant sums, but these were not sufficient to meet the budget target.”
In his introduction to the report Aberystwyth’s Vice-Chancellor Professor Jon Timmis said international students “are becoming less keen to study in the UK” which creates “an even more competitive battle for domestic students”.
Swansea University
£15m deficit in the year to July 2024, excluding pension adjustments, compared to a £33m surplus the previous year. A total of 342 staff have left, or are due to leave, since a voluntary exit scheme opened in 2023 - that scheme closed to academic staff last month, but remains open to other staff.
The report warns that a review of the curriculum and modules are underway as part of savings plans: “Whilst the university has no plans to remove individual programmes a comprehensive review of the curriculum is underway including looking at the number of modules, and also at assessment and feedback.”
University of South Wales
USW’s annual report shows income has increased by 4.2% to £242.9m in the year ending July 2024, but the university has warned it expects to fall into deficit in the year ending July 2025. The university has seen 100 academic and non-academic leave through a voluntary severance scheme initiated as part of plans to curb costs.
A University of South Wales spokesperson said: “It is an incredibly challenging financial climate for the whole HE sector and like many institutions we are facing a deficit budget this year. We are predicting a shortfall of circa £20m in 2024/25 if no action is taken.
“However, we are not expecting to make up this deficit in a single year and instead have a planned programme of transformation, which we are already working to deliver, that will take us closer to achieving the aims of our USW 2030 Strategy whilst also providing a sustainable financial position.”
Cardiff Metropolitan University
£3.038m deficit to year ending July 2024.
The university’s recently published financial report also cites a fall in numbers of international students, rising costs and largely static home tuition fees. Cardiff Met, like others, opened a voluntary severance scheme last year.
In his introduction to the report John Taylor, chair of the board of governors, said Cardiff Met saw “a notable drop in international student recruitment”, faced reductions in public funding, increased operating costs, and the adverse impact of inflation on the value of tuition fees.”
Bangor University
In October 2024 Bangor opened a voluntary severance scheme among other cost-saving initiatives, including cutting non-pay costs, “streamlining” its estate, and managing all vacant posts. It has recently decided to reopen the voluntary severance scheme “in light of additional pressures, such as changes to national insurance”.
Its latest finance report is not yet published.
Wrexham University
£1.3m operating surplus in year ending July 2024.
Bucking the gloomy trend Wrexham University, hailed as one of the most socially inclusive universities in Britain, reported a surplus in the year to July 2024 and is predicting to break even this year. But it chair of governors Dr Leigh Griffin warned against complacency” in his introduction to the just published financial report to July 2024.
There are no voluntary redundancy or compulsory severance schemes in place at Wrexham and no plans to shut departments or for other cuts. While domestic and international student numbers were down this was “offset by better than planned numbers against degree apprenticeships”.
Dr Griffin said: “2023/24 was another year where Wrexham University balanced its books, and generated an operating surplus. Together with the fact that we are not in debt to any third party makes us, I believe, rare amongst universities, a majority of whom are facing significant financial challenges.
“This is, however, not to be complacent, as there is an ill wind affecting higher education across the UK, with tuition fee levels not increased for over a decade and politicised debate questioning the purpose of higher education.”
University of Wales Trinity Saint David
Also bucking the trend with a surplus of £30,587 in year ending July 2024. But its financial report for the year warns: "The University of Wales Trinity Saint David is not immune to the risks and pressures in the sector but has a student and estate profile that provides additional risks.
"When managed appropriately with mitigating activities, they also provide the university with opportunities to navigate the current landscape.The year to 31 July 2023 showed a significant deficit. The actions taken by the University in the year to 31 July 2024 have resulted in a correction of this financial position."
Cardiff University
£31.2m deficit.
The university has announced proposed widespread cuts including losing 400 academic full time equivalent posts and shutting degree programmes and academic schools.
Cardiff University's proposed cuts are:
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