UCU Cymru’s Gareth Lloyd reflects on the immense value of Welsh universities and calls for immediate action to tackle their precarious financial situation.
The emerging plight in Welsh universities is one of Wales’s best kept secrets. Given the nature of sector competition, a university cannot advertise its financial difficulties and must maintain a positive public persona. The gravity of the situation leaves us asking the question whether decision makers truly understand how urgent the immediate need for financial support is.
As someone who returned from university to teach in my own community of Merthyr Tydfil, I have personally witnessed that access to a wide selection of courses and opportunities gives people of all ages the power to escape poverty and give back to their and the wider communities.
Welsh universities are essential to the nation’s economy, culture and social development. Every £1 of public investment generates over £13 in economic impact. Furthermore, these institutions drive innovation, tackle pressing issues such as climate change, and provide crucial support to local businesses and schools.
Despite their immense value, universities are under severe financial strain. Decades of underfunding at the UK level, coupled with rising operational costs, have left many Welsh institutions in a precarious position.
They transform lives, enhance cultural diversity, and foster social cohesion, acting as pillars of progress and inclusion within our communities. In the longer term more collaboration with schools and colleges is crucial to keep money within the Welsh education sector and work in partnership to create coherent pathways through education.
Despite their immense value, universities are under severe financial strain. Decades of underfunding at the UK level, coupled with rising operational costs, have left many Welsh institutions in a precarious position. One university is already facing severe liquidity issues, with increased employer National Insurance contributions compounding the pressures. Unlike health boards, schools, or local authorities, universities rarely disclose financial difficulties publicly. Instead, they are forced to project positivity to emphasize their contributions, masking the harsh realities faced by staff and students. As a former activist and employee with a compulsory education union, I have never witnessed threats to jobs and pay freezes on this scale.
The impact on staff has been devastating. Years of below-inflation pay awards, voluntary severance schemes, and the looming threat of compulsory redundancies have left many struggling. Universities are yet to rule out compulsory redundancies, creating deep uncertainties for their workforce. Pay settlements for 2024/25 are being deferred across institutions, adding to a history of inadequate compensation that has persisted for at least six years.
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Academics and support staff, who already go above and beyond their core duties, often find themselves providing essential mental health and well-being support for students. However, many are now questioning whether these additional responsibilities can be sustained under current conditions. Furthermore, as a highly mobile and international workforce, many are considering leaving Wales for better opportunities elsewhere, exacerbating the brain drain and risking the quality of education and research.
The consequences of inaction are severe. Prolonged industrial action is likely across the sector if conditions do not improve, and Welsh universities could face a downward spiral of course closures, mergers, and consolidations. These measures would reduce access to higher education, particularly for young people in Wales, who already participate in university at lower rates than their peers in other UK nations. Moving education ‘further from home’ would exacerbate inequalities and make it harder to reverse falling participation rates.
A collapse of even one institution would have catastrophic consequences. Beyond the immediate economic devastation, such a failure would damage Wales’ international reputation as a leader in higher education and innovation. The regional and global impact of such a collapse would be immense, with consequences comparable to or worse than the crisis faced by Tata Steel.
A collapse of even one institution would have catastrophic consequences. Beyond the immediate economic devastation, such a failure would damage Wales’ international reputation as a leader in higher education and innovation.
The University and College Union Cymru (UCU Cymru) has estimated that an investment of £60 million is required to stabilize the sector. While the additional £10 million in the in-year budget is welcome, it merely reverses previous cuts and does little to address the structural challenges facing universities. Rising tuition fees will only cover a fraction of the mounting costs, leaving institutions at continued risk and increasing our students’ debt.
UCU Cymru urges Senedd Members to advocate for meaningful investment in the sector. Funding should focus on growth, innovation and stability, rather than being used to enable voluntary severance, redundancy, or course closures. Partnerships between university leadership and unions are crucial to finding creative solutions, but in some cases, the pressures of the crisis have emboldened executives to bypass governance and pursue austerity measures. This approach undermines collaboration and threatens the sustainability of the sector.
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We invite Senedd Members to visit university branches and witness the situation firsthand. These visits will provide vital insights and evidence to inform discussions with the UK Government about reforming the broken fees-based funding system. UCU Cymru have organised a Senedd Rally on February 4th (12:30–13:30) to show solidarity with Welsh universities and push for immediate action.
Now is the time to act. I share with our members a firm belief that we must value the transformative power of education to raise aspirations and change lives for the better. Welsh universities are at a tipping point. With the right support, they can continue to thrive and serve as engines of economic, social and cultural growth, and are crucial to local communities. Without them, the consequences will be felt for generations.
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