University of South Wales is considering redundancies due to projected financial shortfall

The University of South Wales has said it is considering redundancies an option, due to a projected £20m financial shortfall.

According to Wales Online, the University of South Wales has confirmed it is drawing on reserves and has not ruled out redundancies to address its projected £20 million deficit for this financial year.

This deficit comes as a result of university fees in Wales being capped at £9,250 per academic year for domestic students, a fee that was previously subsidised by a high influx of international students.

Higher fee-paying international students rates have fallen since stricter visa rules for postgraduate family members were introduced at the start of 2024, resulting in tough financial conditions for Welsh universities.

Wales Online reported that the number of Nigerian students has been significantly impacted following the policy update, facing a 68 per cent drop in UK student visas being granted to Nigerians in the first half of 2024.

This has had a major impact on the University of South Wales, which according to the latest figures had the highest numbers of Nigerian students out of any Welsh university.

The new Labour government in Westminster has made no plans to revoke or change the new visa policy, despite the financial strain it has placed on Welsh universities.

Last year, USW launched a voluntary redundancy programme, after it was faced with a £6m deficit. So far, 100 staff members have decided to take the settlements.

The university has said that it has significant financial reserves so can combat the issue over a number of years, with the aim of establishing more sustainable finances.

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However, USW would not reveal its current reserve position or its current student influx number to Wales Online. However, higher education statistics for the 2022-23 academic year revealed it had over 26,000 students, 18 per cent of which were international students.

According to USW’s financial accounts from 2023, the university employed almost 2,200 staff, who account for 53 per cent of its total £233 million income.

Despite the projected financial deficit, USW has begun constructing a multi-million-pound computing, engineering and technology building at its Treforest Campus.

When asked by Wales Online if any redundancies could be made compulsory as a result of these financial shortfalls, a spokesperson for the University and College Union (UCU) in Wales said: “We are continuing to work with universities in Wales very closely. However, any compulsory redundancies would be unacceptable.”

The Cardiff Tab contacted the University of South Wales, a spokesperson said: “It is an incredibly challenging financial climate for the whole HE sector and like many institutions we are facing a deficit budget this year. We are predicting a shortfall of circa £20million in 2024/25 if no action is taken.

“However, we are not expecting to make up this deficit in a single year and instead have a planned programme of transformation, which we are already working to deliver, that will take us closer to achieving the aims of our USW 2030 Strategy whilst also providing a sustainable financial position.

“USW’s strong reserve position means that we are able to take time to consider our options and operationalise this plan effectively. It is likely that this will include some redundancies, however we are unable to provide any further details at this stage.”

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