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Universities should consider using reserves to save jobs - minister

Gwyn Loader
Chief correspondent, Newyddion S4C
Alamy The exterior of a Cardiff University building with students enteringAlamy
Cardiff University confirmed plans to cut 400 full-time jobs amid a funding shortfall in January

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.

Bangor University and the University of South Wales confirmed plans to cut 200 and 90 jobs respectively on Wednesday, while Cardiff University is also looking 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.

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 to 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."

Vikki Howells in the Senedd. She is stood at a lecturn about to speak. She is wearing a black top underneath a lilac jacket and has a beaded and gold necklace on. Her dark shoulder-length hair is untied.
Cynon Valley MS, Vikki Howells, announced on Tuesday a further £19m for the higher education sector

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."

Getty Images The front of Cardiff UniversityGetty Images
Ms Howells says she wants all universities - including Cardiff - to consider using their reserves

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

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."