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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

Future of childcare and early education ‘at serious risk’

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MANY childcare providers across Wales will be forced to close due to the unsustainable funding model imposed by the Welsh Government, the sector warned.

Lisa Owen, who has run the Chuckles nursery in Newport for more than 25 years, called for fair funding for providers and parents as she penned a 2,000-name Senedd petition.

Under the Welsh Government’s offer, working parents or those in eligible education or training can receive help towards the cost of childcare for three- and four-year-olds.

But providers receive a £6.40-an-hour rate which Ms Owen warned does not cover the true cost of delivering childcare, with many businesses being forced to run at a loss.

“Childcare providers should not have to fight to survive,” she wrote. “Families should not have to struggle to find care for their children – if we don’t act now, the future of childcare and early years education in Wales is at serious risk.”

In response to the petition, Dawn Bowden, minister for children and social care, said the Welsh Government will invest more than £150m in childcare in 2025/26.

Merthyr Tydfil and Rhymney MS Dawn Bowden
Merthyr Tydfil and Rhymney MS Dawn Bowden

Pledging to review the amount providers receive each year, Ms Bowden pointed to April’s £1.40 uplift in the rate which had been frozen at £5 for three years as inflation spiralled.

She also raised a 20% uplift in allowable food costs and 100% small business rates relief.

But Ms Owen was extremely disappointed by the minister’s response, saying she has to subsidise the childcare offer at the risk of losing her business.

She asked: “Why are childcare providers having to fund the difference between the rate the Welsh Government has decided and the rate the setting needs to charge to be sustainable?”

The petitioner said: “We are not asking for an increased rate but for the Welsh Government to give us back our businesses by allowing us to charge shortfalls if required, so we can protect the longevity of the business and the future jobs of our teams.”

Ms Owen warned the flat rate and inability to charge for the shortfall meant she lost income of about £75,000, including £50,000 earmarked for a disabled toilet extension.

She said: “It is getting increasingly annoying that the minister keeps writing that the rate was increased by 28% but missing out that in April 2022 the rate was frozen for three years.”

The business owner pointed out that wages increased by 37% in the same period and the UK Government raised employer national insurance contributions (NICs) from April.

She told the Senedd’s petitions committee her award-winning nursery paused investment and will no longer be able to take on apprentices nor pay the real living wage.

In a follow-up letter, the campaigner said: “These all stopped because the Welsh Government will not allow me to charge what I need to be sustainable.”

Ms Owen wrote: “Everyone I have spoken to outside the Welsh Government completely understands our position and how simply this can be rectified. I hope you can see how unreasonable it is to expect a business to support your scheme then be destroyed by it.”

Her nursery was one of a handful in Wales to score “excellent” in all six areas of a joint Care Inspectorate Wales and Estyn inspection in 2023.

“I am not rich,” she said. “Nurseries are no longer ‘honey pots’ due to the huge amount of regulations we have to adhere to and the training we have to fund.

“Everyone is quick enough to say we are expensive but they are expensive to operate: you can’t cut staff, turn the heating down, buy cheaper materials.

“It’s a passion and we do what we do to survive.”

The National Day Nurseries Association Cymru welcomed the £1.40 increase but warned the £6.40 rate was still expected to leave most private nurseries with a shortfall.

The effective rate for childcare providers ranged from £7 to £10 an hour, according to an Early Years Wales report which warned of pressures from wage growth, inflation and NICs.

One provider told the umbrella organisation: “Rhetoric alone won’t change outcomes for children. Investment, collaboration and a long-term commitment to early years support will.

“Ministers must now translate their words into tangible actions that ensure every child in Wales has the strongest possible start in life.”

At its meeting on July 14, the Senedd’s petitions committee decided to write to the minister, seeking a response to Ms Owen’s concerns while keeping the petition open in the interim.

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Community

Voyages to Positive Destinations: Young people take to the water aboard Faramir

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YOUNG people from Pembrokeshire experienced the adventure of a lifetime in May, thanks to a unique nautical programme designed for those in care, care leavers, and their families.

The Voyages to Positive Destinations initiative took place on the 27th and 28th of May aboard Faramir, a 22.35m Bermudan Ketch owned by the Cirdan Sailing Trust. The tall ship was moored at Hobbs Point in the Cleddau Estuary, ready to welcome participants for an inspiring exploration of life at sea.

The event was organised through a partnership between Tall Ships Wales Trust, the Cirdan Sailing Trust, and the Dragon Darwin Experience, with generous support from the National Lottery Community Fund, the Port of Milford Haven, and West Wales Freemasons.

First-time sailors

On the first day, 19 young people and adults from local families—alongside representatives from Pembrokeshire County Council—stepped aboard for a Nautical Medley. The experienced crew led a hands-on tour of the ship, both above and below deck, which included a scavenger hunt, knot-tying workshops, and open discussions about sailing and life at sea.

Meanwhile, the Darwin Centre transformed the ship’s galley into a temporary marine biology lab, offering families the chance to explore ocean life up close—from drifting plankton and seaweed snacks to shells and mermaid’s purses.

That afternoon, Faramir set sail with 17 passengers for an overnight voyage. The group fully immersed themselves in ship life—taking turns at the helm, helping to set sails, keeping the galley tidy, and standing night watch while moored off Dale Bay.

Science on the sea

The following day, a new group including six young people joined for a short taster sail along the Cleddau. They explored the vessel, met the crew, and shared homemade cake before joining the Darwin team for more hands-on marine science.

Using a fine-mesh plankton net, participants collected zooplankton samples and recorded environmental data including weather, sea conditions, salinity, GPS location, and vessel speed. The ship’s galley once again became a floating lab, where microscopes were used to identify the tiny marine species gathered.

That evening, Faramir moored at Neyland Marina for an open ship event, attended by around 30 project partners and local dignitaries.

Looking to the future

The Voyages to Positive Destinations programme will culminate this autumn with a longer coastal voyage around southern England, aimed at young adults preparing to leave care.

The Tall Ships Wales Trust hopes to offer more of these transformative experiences in Pembrokeshire, connecting young people with the region’s maritime heritage and building skills, confidence, and curiosity through adventure.

Paula Holt from the Tall Ships Wales Trust said: “For many of these young people, this was their first time experiencing life at sea. Watching them build confidence, work together as a crew, and discover the hidden world of marine life was truly inspiring. Opportunities like this can create lasting positive memories and open new horizons.”

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Education

Double award win for Ysgol Gymraeg Bro Penfro

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Net Zero school project praised for quality and collaboration

YSGOL GYMRAEG Bro Penfro, Pembrokeshire’s first Net Zero Carbon school, has won two prestigious awards recognising the quality, sustainability, and value of its construction.

Since opening in September 2024, the £13.9 million Welsh-medium school has been widely praised by pupils, staff and the wider community. Now, it has earned top honours at two major national awards:

  • Delivering Value Award at the Constructing Excellence in Wales Awards 2025
  • Project of the Year at the 2025 Welsh Government Education Buildings Awards

The awards celebrate excellence in design, innovation and teamwork across the construction and education sectors. Judges highlighted the school’s delivery under tight financial and time constraints, as well as the strong collaboration between the council, contractors and other partners.

A model of partnership working

Commenting on the success, judges at the Education Buildings Awards said: “The success of this project, despite budgetary pressures, a tight programme, and a constrained site, is born from the close, professional, respectful and collaborative relationships between stakeholders. It is something to be celebrated.”

‘A credit to all involved’

Cllr Guy Woodham, Pembrokeshire’s Cabinet Member for Education and the Welsh Language, said: “I am delighted with these awards. They reflect the consistently strong work being done to improve our school learning environments, and are a credit to everyone involved in the project.
The school is a real achievement for Pembrokeshire, delivered despite significant challenges.”

Sustainable design and community impact

Robert Williams, Area Director for Morgan Sindall Construction, added: “To see Ysgol Gymraeg Bro Penfro recognised with not one but two awards is incredibly rewarding and testament to the collaboration between our teams, Pembrokeshire County Council, and the Welsh Government.

“As Pembrokeshire’s first Net Zero Carbon school, we’ve delivered first-class educational facilities while setting new standards for environmental responsibility in school construction.”

Work on the school began in March 2023, with the keys handed over to Executive Headteacher Dafydd Hughes in July 2024. The school currently has 160 pupils enrolled.

The project was funded through the Welsh Government’s Sustainable Communities for Learning Programme and Pembrokeshire County Council.

Caption: Celebrating the two awards for Ysgol Gymraeg Bro Penfro are, left to right, Council Leader Cllr Jon Harvey, Headteacher Dafydd Hughes and Steven Richards-Downes, Director for Education (Pic: Herald).

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