The University of South Wales (USW) is grappling with a significant financial challenge, projecting a £20 million deficit for the current financial year.
This alarming shortfall has prompted the institution to consider various measures, including potential redundancies and utilising its financial reserves, to address the issue over the coming years.
The projected £20 million financial shortfall at USW is a reflection of a challenging financial environment affecting higher education across the UK. Falling international student numbers, coupled with capped domestic tuition fees, have placed immense pressure on university finances.
USW has observed a 68% drop in UK student visas granted to Nigerians, who were the largest international student group at the university. This decrease has had a notable impact on its financial stability.
Despite these efforts, the projected £20 million shortfall indicates that further measures are necessary to achieve financial stability.
Although the accounts for 2023-24 are still being audited, the university assures that its strong reserve position allows for a gradual approach to resolving the financial crisis.
The spokesman for the university stated, “We are predicting a shortfall of £20 million 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.”
The UCU spokesman commented, “We are continuing to work with universities in Wales very closely. However, any compulsory redundancies would be unacceptable.”
However, uncertainties remain regarding the new student intake for the 2024/25 academic year. The university has not disclosed the enrolment numbers or how they align with their targets.
The financial deficit faced by the University of South Wales is a significant concern that necessitates immediate and strategic action.
While the university’s strong financial reserves provide some flexibility, the implementation of a transformation programme and potential redundancies are crucial steps towards achieving long-term sustainability.
