Universities should consider using reserves to save jobs – minister

The minister responsible for higher education in Wales has asked universities to “consider all options”, including using its financial reserves, to prevent job losses.

Vikki Howells, the Welsh government’s minister in charge, announced on Tuesday a further £19m for the higher education sector, despite stating earlier this month that no extra money was available.

It comes after the University of South Wales confirmed it would be launching a consultation reviewing its academic provision later this week and Cardiff University’s plans to cut 400 jobs.

However, critics have argued the extra funding, which is capital cash for buildings, would not solve Wales’ higher education financial challenges.

Elsewhere, Bangor University also aims to cut about 200 jobs to make savings of £15m, its vice chancellor told staff in an email on Wednesday.

In an interview with BBC-produced Newyddion S4C, Ms Howells said she wanted all universities – including Cardiff – to consider using their reserves as others have successfully used them in the past.

However Cardiff University has previously said financial reserves “are not the same as money that can be freely spent”.

Ms Howells added she had already spoken to Cardiff University Vice-Chancellor Wendy Larner several times and was due to speak with her again on Thursday.

“I’ve made it really clear to each Vice-Chancellor when I’ve met them individually and collectively that we in Welsh government want to see job losses as a last resort.

“Not all of them [reserves] are easily accessible but I do think it’s something each university should be considering and other universities have done that in the past to minimise job losses.”

Ms Howells’ comments come after she announced a further £19m for the higher education sector, with £18.5m for estate maintenance and digital projects to reduce operating costs.

She also said a further £500,000 would be given to “support the international recruitment and promotional activities of Welsh universities”.

The extra funding comes after Ms Howells’ stated earlier this month that no additional money was available for the sector.

In response to this, she said “things move fast in politics” and the additional funds was “not money that’s been left over from the education budget”.

“I’m really pleased I’ve been able to secure it forward for the sector.”

Despite the additional funding, critics have argued it will not address the major financial challenges facing the Higher Education in Wales.

The University of South Wales confirmed on Tuesday it would be launching a consultation later in the week on reviewing academic provision. It is expected job losses will be announced.

Bangor University is also expected to outline plans which could lead to job losses on Wednesday.

Gareth Lloyd, Lecturers’ Union UCU Cymru said: “Unfortunately, and whilst we are grateful for the ministers efforts, the amount offered will still not be enough to stabilise the sector”.

Cardiff University added it was “too early to say how this funding will affect Cardiff University, but it will be considered in our wider financial context.”