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Cardiff University Expects a Significant Loss in Income

Posted by Richard Ward in

Image courtesy of Flickr, Creative Commons

Cardiff University has estimated it could lose £110m in income to do a decline in first-year enrolments as a result of Covid-19.

Vice-chancellor Colin Riordan has been in contact with unions and announced a number of measures to protect staff, including pay cuts for executive staff.

The announcement follows on from a report by the London Economics consultancy that predicted 1,200 of the 23,000 jobs at Welsh universities could be at risk.

In a letter written to staff by Professor Colin Riordan, he said: "The report suggests that universities of our size and breadth of activity could see a 24% reduction in first year student enrolments."

"In addition we would forgo income from residences and catering and we should also expect a reduction in returning and post-graduate student income."

"Unfortunately, this means that even the average figure given in the report of a loss of £37m is likely to be a significant understatement."

The university has also carried out its own modelling, which suggested the outcome is likely to be extremely challenging and that a realistic scenario would be a 20% reduction in income.

Most of this decline can be attributed to fewer international student enrolments.

The news will be troubling to those PBSA operators that under normal circumstances rely heavily on international students to fill their residences.

Moreover, those schemes that carry a significant premium to the average PBSA but also the underlying HMO market could struggle to attract domestic students to fill this void.