Financial pressures facing FE sector remain acute

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Today, Members of the Senedd debate the Welsh Government’s First Supplementary Budget 2025-26. Acute financial pressures continue to face the further education sector, and it is critical that the contribution of colleges is recognised. 

ColegauCymru Chief Executive, David Hagendyk, said, 

“Colleges remain grateful for Welsh Government’s continued support for the further education sector. However, ahead of today’s Senedd debate on the supplementary budget, we must highlight the growing financial pressures facing colleges across Wales. 

This academic year, enrolments among 16 - 18-year-olds have risen by 8.27% compared to last year, with more learners starting on lower-level vocational courses and presenting increasingly complex needs. 

While this rising demand reflects the success and value of colleges, it also places significant strain on a sector already grappling with multiple financial pressures - both in-year and long-term - following several years of tight settlements and extensive cost-cutting. 

Colleges continue to rely on short-term funding streams, which makes it difficult to plan effectively, retain skilled staff, or implement sustainable support structures. 

Additional pressures include the estimated £2 million cost of meeting new additional learning needs (ALN) duties in 2024/25, rising to over £2.7 million in 2025/26. Colleges have also seen learner travel costs rise by more than £3.2 million over the past year. 

As key anchor institutions in communities across Wales, colleges are central to our economic recovery and social progress. We encourage MSs across the political spectrum to continue to back our colleges - for our learners, our employers, and our communities.” 

 Further Information 

Clare Williams, ColegauCymru Policy Officer 
Clare.Williams@ColegauCymru.ac.uk

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