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Education

Welsh universities ‘not at immediate risk of collapse’

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NO WELSH university is at immediate risk of collapsing under the weight of multi-million-pound deficits, according to the head of a public body set up to oversee post-16 education.

Simon Pirotte, chief executive of Medr, which was established in August, gave evidence to the Senedd education committee’s inquiry on issues facing higher education (HE).

Medr, which has a near-£1bn budget, is responsible for funding and regulating post-16 education and research – including colleges and sixth forms, unlike its predecessor Hefcw.

Mr Pirotte told the committee: “I think it’s fair to say… there are massive challenges facing the whole of the tertiary sector at the moment.”

He added: “It’s an incredibly challenging time for institutions across the tertiary sector, every part… HE, local authority schools, FE [further education] colleges, apprenticeship providers, adult community providers – they’re all facing financial pressures.”

The former Bridgend College principal, who has been in education for around 40 years, emphasised that the “very challenging financial context” is not unique to Wales.

“Almost 100 institutions across the UK have announced restructuring measures,” he said. “So these are challenging times but it’s also essential that institutions cure their financial sustainability and continue to provide those best experiences for learners.

“And I think it’s fair to say that this requires some difficult decisions, including looking at prioritisation and efficiency measures… nobody wants to see job losses and I can say that as a former head of an FE college.

“I know how hard those decisions are and understand the tension between ensuring an institution’s financial sustainability but also considering the human impact.”

Appearing before the committee on May 21, Mr Pirotte told Senedd Members he faced similar pressures previously, with increasing costs not met by an increase in income.

“You have to identify additional sources of income and if that isn’t possible, you have to consider scaling back or stopping certain activities,” he said. “And this is the situation facing most institutions in Wales and indeed across the UK.”

Mr Pirotte explained that Medr uses externally audited financial statements to assess the challenges facing universities. “And we do not believe that any institution in Wales is at risk of failure in the immediate short term,” he said.

Pointing to data published by Medr last week, he said universities faced a £61m operating deficit in 2023/24 compared with a £21m surplus in 2022/23.

He told the committee: “This deficit of £61m does not account for the one-off restructuring costs. If you add that in you’re probably talking about a £77m deficit.”

Mr Pirotte said more than half of costs in the sector are associated with staffing.

“If we take a 2.5% annual pay settlement for HE, that estimates about £22m a year,” he said. “The increase in the employer national insurance costs, that’s another estimated… £20m.

“Employer contributions for teachers’ pension schemes, which particularly affects four of our institutions across Wales, is estimated to cost £6m a year.”

He also raised inflationary pressures, energy costs, increasing cybersecurity risks, a downturn in the number of international students and the loss of EU structural funds.

Mr Pirotte estimated increases in tuition fees to £9,535 a year will generate an additional income of about £36m “but this will not cover the costs”.

He warned that the UK Government’s contentious proposals on immigration have further fuelled concerns among providers around international recruitment.

On proposed cuts to courses, he stressed that universities are autonomous with “subject provision driven by markets, by demand – what students want to study”.

Mr Pirotte said the Tertiary Education Act 2022, which established Medr, specifically states that the body must not use its funding powers to require nor prohibit certain courses.

Natasha Asghar, the Tory shadow education secretary, said: “Medr seems to be the answer to everyone’s prayers but when it comes to the nitty gritties… in relation to feedback to ministers: how much of it is going to be taken on board and actually acted upon?”

South Wales East Senedd Member Natasha Asghar
South Wales East Senedd Member Natasha Asghar

Mr Pirotte replied: “We’re certainly listened to – we have good, constructive dialogue.”

James Owen, Medr’s chief operating officer who is a former Welsh Government director, welcomed an additional £28.5m of in-year investment from ministers.

Plaid Cymru’s Cefin Campbell, a former lecturer, questioned how close some universities are to going into administration. “How close are we to some sort of meltdown?” he asked.

Plaid Cymru MS Cefin Campbell
Plaid Cymru MS Cefin Campbell

Mr Pirotte reiterated: “We’re not saying there’s an institution that is in danger of falling over in the short term but there are medium- to longer-term challenges….

“This is not easy – the reason that they’re taking the actions that they are doing now is to prevent that falling over further down the line.”

Pressed by Ms Ashgar about whether he can see the £77m deficit growing, he said: “Yes is the simple answer but what we don’t know yet is the final impact of the kind of measures that organisations are taking at the moment.

“The future is really challenging… that’s why institutions are addressing the issues now – because they have to, otherwise that situation would get worse.”

 

Education

Manifesto warns Welsh nurseries are ‘fighting to survive’

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Nurseries in Wales are warning that rising costs and underfunded childcare places are putting providers under severe pressure

NDNA CYMRU has launched its manifesto, The Best Start for Children in Wales, calling on the next Welsh Government to make early childhood play, learning and care a priority for every family and community.

The organisation says early findings from its nursery survey show 89% of day nurseries in Wales make a loss on sessional places, while 79% say the full day rate does not cover their costs.

Staffing bills have risen by an average of 10.5%, while nurseries have increased fees to parents by an average of 7.5%, meaning many providers are absorbing part of the extra cost themselves.

One nursery told NDNA: “We can’t increase prices as parents are struggling to pay their bill already.”

NDNA Cymru says the pressure is forcing some nurseries to spend less on resources, reduce staff hours and cut training, with one respondent saying they had been forced to lay off three members of staff.

The manifesto sets out four priorities for the next Welsh Government. These include a national review of funded childcare, funding rates that reflect the real cost of delivery, proper support for Additional Learning Needs, protection for existing providers before new capital projects are approved, and a fully funded workforce strategy.

Tim McLachlan, Chief Executive of NDNA Cymru said: “The next Welsh Government has the opportunity to do things better. We are calling on all parties to put children at the heart of any future policy, making sure it is properly funded and delivered consistently in communities across Wales.

“Our survey of day nurseries shows that they face unique funding pressures. It cannot be good for children, families or the economy to have nurseries fighting just to survive when we want to see them thrive.

“Parents rightly want more support to make childcare more affordable. But to be fair to everyone and make sure that policies can be delivered, political parties must make sure any promise they make is fully funded.”

NDNA Cymru said 92% of nurseries responding to its survey were either operating at a loss or only breaking even.

The survey also found that the new £6.67 hourly funding rate for three and four-year-olds does not cover costs for many providers. For full day care, the average shortfall was £1.56 per hour per child, rising to £2.05 for sessional care.

One nursery said: “In the 39 years I have been operating successfully and at a very high level of quality, this is the most challenging and disheartening time for my business in relation to financial sustainability.”

Another said: “Funding and fees are a constant worry alongside staff recruitment and retention; childcare is a lot more challenging and increases each year make it harder and harder.”

NDNA Cymru said it wants a fair and consistent childcare system across Wales, backed by national guidance, proper investment in staff, and adequate ALN funding so children’s needs can be met.

 

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Education

College learner receives prestigious Welsh award

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A PEMBROKESHIRE College learner has been recognised with a prestigious award celebrating her commitment, achievement and future potential.

Eleanor Edwards, a second-year Travel and Tourism learner, received the award from the Worshipful Livery Company of Wales as part of its annual College Awards programme.

The scheme supports young Welsh talent and recognises individuals undertaking academic and vocational studies, as well as members of the armed forces and those involved in community service.

Support for future career

The award will help Eleanor further develop her skills and broaden her learning experience through additional courses made possible by the funding.

The College said Eleanor’s success reflects both her hard work and ambition, as well as the high standard of vocational learning delivered at Pembrokeshire College.

Speaking on behalf of the Worshipful Livery Company of Wales, Sylvia Robert-Sargeant said: “We are delighted to have been involved in the selection of Eleanor Edwards as an outstanding second-year learner studying for a Diploma in Travel and Tourism at the College.

“We wish Eleanor every success, both in participating in the extra courses made possible by this award and in her future studies and career.”

Ambition to join cabin crew

Pembrokeshire College Principal Dr Barry Walters also congratulated Eleanor on her achievement.

Dr Walters said: “We are delighted to congratulate Eleanor on receiving a Worshipful Livery Company of Wales award.

“This achievement will support her continued progression, enabling her to gain the additional qualifications needed to pursue her ambition of a career in air cabin crew.

“We also extend our sincere thanks to the Worshipful Livery Company of Wales for their ongoing support and for the time invested in the selection process.”

The College said it was proud to see Eleanor acknowledged through the respected awards programme and wished her every success as she continues her studies and prepares for a future career in the travel and tourism industry.

Picture: Learner Eleanor Edwards with Sylvia Robert-Sargeant and Pembrokeshire College Principal Dr Barry Walters.

 

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Education

Police dogs visit Greenhill School for community afternoon

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PUPILS at Ysgol Greenhill were given a close-up look at the work of police dogs during a visit from local officers.

Officers from the Tenby Neighbourhood Policing and Prevention Team attended the school on Thursday (Apr 23), joined by police dog handler PC 301 Bain and police dogs Stan and Archie.

The visit gave pupils and staff the chance to learn more about the role of police dogs, their training, and the work they carry out alongside officers.

Police said the afternoon was also an opportunity for positive engagement and relationship building between young people and the local policing team.

The visit appeared to be a hit with pupils — and with Stan and Archie, who were said to have enjoyed plenty of fuss and attention during the afternoon.

Tenby, Saundersfoot and Narberth Police thanked Greenhill School for hosting the visit.

 

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