Medr says Welsh universities not at 'immediate' risk
Medr, which has a near-£1bn budget, is responsible for funding and regulating post-16 education and research – including colleges and sixth forms.
Mr Pirotte told the committee: 'It's an incredibly challenging time for institutions across the tertiary sector, every part… HE, local authority schools, FE [further education] colleges, apprenticeship providers, adult community providers – they're all facing financial pressures.'
The former Bridgend College principal, who has been in education for around 40 years, emphasised that the 'very challenging financial context' is not unique to Wales.
Appearing before the committee on May 21, Mr Pirotte told Senedd members he faced similar pressures previously, with increasing costs not met by an increase in income.
Mr Pirotte explained that Medr uses externally audited financial statements to assess the challenges facing universities. 'And we do not believe that any institution in Wales is at risk of failure in the immediate short term,' he said.
Pointing to data published by Medr last week, he said universities faced a £61m operating deficit in 2023/24 compared with a £21m surplus in 2022/23.
He told the committee: 'This deficit of £61m does not account for the one-off restructuring costs. If you add that in you're probably talking about a £77m deficit.'
Mr Pirotte estimated increases in tuition fees to £9,535 a year will generate an additional income of about £36m 'but this will not cover the costs'.
On proposed cuts to courses, he stressed that universities are autonomous with 'subject provision driven by markets, by demand – what students want to study'.
Natasha Asghar, the Tory shadow education secretary, said: 'Medr seems to be the answer to everyone's prayers but when it comes to the nitty gritties… in relation to feedback to ministers: how much of it is going to be taken on board and actually acted upon?'
Mr Pirotte replied: 'We're certainly listened to – we have good, constructive dialogue.'
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