Minister ‘aware’ of plans for English university ‘emergency fund’

A minister in the devolved nations has suggested that the Westminster government is planning to announce an “emergency fund” to bail out English universities at risk of collapse.

Vikki Howells, Wales’ higher education minister, later rowed back on the statement made in the Welsh Parliament, the Senedd, after acknowledging that support for English institutions was “solely a matter for the UK government”.

But the remarks will be picked over by English sector leaders who have repeatedly called on the new Labour government to provide rescue funding for universities facing bankruptcy, ahead of the budget on 30 October.

Ms Howells’ remarks came in response to a question from Cefin Campbell, a Plaid Cymru assembly member, who said he knew “from reports” that the Westminster government’s “rescue plan” included “£1 billion bailouts, fee rises, as well as further cuts to courses and staff”.

Mr Campbell asked whether the Welsh government, also run by Labour, planned a similar programme for local universities, claiming that they faced a funding shortfall of about £100 million.

In response, Ms Howells – who was appointed last month – said she was “aware that the UK government has this emergency fund that they’re bringing into play”.

It was unclear whether this statement was based on discussions with the UK’s Department for Education. Ms Howells said that she was yet to meet with Baroness Smith of Malvern, England’s skills minister, although she said that she was keen to.

Ms Howells said that Wales would “have its own funds” administered via Medr, the post-16 regulator.

“I’m pleased to say it’s going to be a more positive kind of fund. It will be called a transformation fund, so it has a positive title and a positive ethos in terms of not just bailing out universities that may be in financial trouble, but working with them to see how they can transform the work that they do, to encourage them to be more financially self-sufficient in these difficult times moving forward,” Ms Howells said.

However, Ms Howells subsequently wrote to Elin Jones, the Senedd’s presiding officer, saying that although she was “aware of wider calls for an emergency fund, support for the higher education sector in England is solely a matter for the UK government”.

With reference to Wales’ transformation fund, she said that she “would like to clarify that the policy in this area remains at a very exploratory stage, and we are still working through what, if any, potential support mechanism may look like, in partnership with Medr and institutions”.

Ms Howells reiterated her statement made in the Senedd that “we do not believe there is any Welsh institution that is at risk of failure”.

Mr Campbell later claimed that Ms Howells had “misled the HE sector” in Wales “by raising expectations”.

“Our universities need a cast iron guarantee from [the] Welsh [government] that they will be given the support they need – to survive and prosper,” Mr Campbell wrote on X.

“Giving the false impression that support is imminent will erode the confidence of the sector in Labour’s seriousness about getting to grips with the perilous state of Welsh universities’ finances.”

The Department for Education declined to comment.

chris.havergal@timeshighereducation.com