There is a “real danger a university in Wales could collapse next year,” a union boss has warned. Dan Beard, who chairs Unison Cymru’s higher education forum, told the Senedd’s education committee: “Without change, we will see universities collapsing or contracting significantly.”
He made the prediction on the same day Welsh university vice chancellors told MPs that they are “optimistic” they will survive.
Giving evidence to an inquiry on higher education, which was prompted by cuts at institutions across Wales, Unison called for urgent intervention from ministers. “Nearly all universities are making cuts to some degree or another,” Mr Beard told the inquiry.
Unison described the Welsh Government’s February announcement of £18.5m for universities as “nowhere near enough”, with Cardiff alone facing a £30m shortfall.
“Without a strategy and funding, Welsh universities will continue to contract, shedding staff and closing unprofitable courses,” the union said in its written evidence.
One vice chancellor echoed the union’s sentiment. Swansea University vice chancellor Professor Paul Boyle told the Commons Welsh Affairs Committee: “The system at the moment does not lend itself to sustainability.”
MPs were also told by university bosses that the extra £18m they received from the Welsh Government this year had been wiped out by higher national insurance bills. They called for domestic tuition fees to be raised to keep pace with inflation and help them stabilise.
The vice chancellors of all eight Welsh universities, as well as the head of the Open University in Wales gave evidence while unions including UCU and Unison were grilled by members of the Senedd Children Young People and Education Committee.
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Changes to visa rules for dependents were hitting applications from higher paying international students. This had come at the same time as they faced soaring national insurance contributions, inflation and near static domestic fees.
Cardiff Metropolitan University Vice Chancellor Rachael Langford told MPs that the effect of changing government policies and rising costs in recent years made it tough to plan ahead, but she and other vice chancellors were confident the cuts they make will secure the future. Cardiff Met is among institutions shedding staff.
“We are working hard to make sure we are still here in 10 years,” said Professor Langford, “I think we will do that but we need more policy coherence (from the government).
“We need more coherence in immigration, education and treasury policy. There has been a lack of coherence. It feels like we are tumbling around in a washing machine sometimes.”
Dr Ben Calvert, Vice Chancellor of the University of South Wales told MPs he was more than confident about his institution, which has also announced job cuts.
“I think we will be OK. I think USW is in a strong cash position,” he said, but admitted this could only be achieved by “rationalising”.
Professor Edmund Burke, Vice Chancellor of Bangor University, which is axing jobs to save £15m, said this action should mean the 140 year-old institution lasts another century and beyond.
Aberystwyth University Vice Chancellor Professor Jon Timms and Professor Elwen Evans Vice Chancellor of the University of Wales and the University of Wales Trinity Saint David said the savings they make would also put them on sounder financial footing. Professor Evans admitted it was “painful” shutting UWTSD’s much loved Lampeter campus but it was just too expensive.
Swansea and Cardiff’s vice chancellors were more muted, saying a sustainable funding model now is vital but Wrexham University Vice Chancellor Joe Yates warned rising fees could deter applications.
Professor Wendy Larner, Vice Chancellor at Cardiff, which has caused outcry over its sweeping cuts to save £28m, said she was only “reasonably confident” about the sector’s ability to re-invent itself in a new global and financial landscape.
“I don’t think we are seeing a short term financial challenge,” Professor Larner warned MPs.
Swansea University vice chancellor Professor Paul Boyle questioned the “sustainability” of the current system.
The evidence sessions to the committees came at a tumultuous time for institutions with job losses and course closures. The most high profile cuts are at Cardiff University but the sector as a whole in Wales has already forecast deficits of at least £70m at the end of this academic year, with only Wrexham and UWTSD posting modest surpluses last year.
The issue is reflected around the UK with around 70% of universities having to make savings. But Wales has the lowest rates of 18-year-olds applying to university, of all the UK nations and has also been hit by falling research income.
