Today, the Welsh Government has published its final budget for 2026/27. The budget presents an unprecedented challenge for Wales’ further education colleges.
ColegauCymru Chief Executive, David Hagendyk, said,
“This is a hugely disappointing budget from the Welsh Government. It risks shutting young people out of education, and it will shatter the government’s own flagship Young Person’s Guarantee, undermining the commitment that every young person should be offered a place in education, training or work.
In real terms, it amounts to a cut in funding for each further education college in Wales and will create a significant and immediate funding crisis across the sector, with a funding shortfall across Wales in excess of £25million. For months, we have warned political parties in the Senedd about the growing pressures facing colleges, driven by record numbers of young people applying and enrolling on full‑time places. Unless this budget is urgently revisited, thousands of learners could find themselves with no college place this September.
Colleges will be forced into stark choices including cutting courses, turning learners away, cutting hundreds of jobs and reducing the vital learning and wellbeing support that so many learners rely on.
This could not come at a worse time. Employers and industries across Wales are crying out for a skilled workforce, yet further education - which delivers that workforce - is being asked to enrol over 3,000 learners without any funding. It is an unsustainable position, and the First Minister and the Finance Secretary need to think again.
We urge the Welsh Government and all political parties to come together, to recognise the scale of the challenge, and find the investment desperately needed to protect learners, skills, and Wales’ future economy”.
This academic year, colleges have had another strong year of recruitment with high numbers of young people enrolling in September 2025. At the point of the enrolment freeze date in November 2025, full-time learner numbers were 48,000, which is around 4,500 more than originally budgeted for by the Welsh Government and by Medr. Some provision was made this year to support increased growth, but even allowing for this, the sector is delivering around £15m - £20m of unfunded delivery. We expect learner numbers to rise again in 2026/27, and this budget settlement is simply unsustainable. Next year, there will be a funding shortfall across Wales in excess of £25 million.
Today (20 January 2026), ColegauCymru will be hosting a meeting of the Senedd Cross Party Group for Further Education and Skills with college learners sharing their views on Post-16 participation - widening access and removing barriers for learners. A group of learners representing a range of colleges from across Wales will share their experiences, and there will be an opportunity for discussion on solutions to widening access and removing barriers for learners. This discussion will help to inform the forthcoming Welsh Government consultation focused on the tertiary education sector.
Further Information
Welsh Government Press Release
Welsh Government publishes Final Budget
20 January 2026
ColegauCymru News
Securing the Future: ColegauCymru calls for urgent support for Welsh colleges
25 November 2025
ColegauCymru Manifesto
Growth, Opportunity and Fairness
Amy Williams, Policy Officer
Amy.Williams@ColegauCymru.ac.uk
