Coronavirus: Universities 'may lose £98m' due to pandemic

Welsh universities could face a £98m drop in income in 2020-21 as a result of the coronavirus pandemic, according to a report.

The analysis for the University and College Union also estimates first-year student numbers in Wales could drop by more than 13,000 in 2020-21.

It follows a warning that some UK universities could go bust without emergency funding.

Universities Wales has called for urgent action from ministers.

The report by the London Economics consultancy warns of "immense financial consequences" for the UK sector.

It says the impact on income could potentially risk 1,200 of the 23,000 jobs at Welsh universities.

• Universities warn of going bust without extra cash

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The sector has already experienced significant losses due to the cancellation of conferences and events and lost income from student accommodation.

It also faces a major cut in international student numbers and the prospect of thousands of others deferring their places until next year meaning that core income streams would be "severely jeopardised".

The analysis suggests up to 1,200 jobs at institutions, including Cardiff University could be at risk

The report estimates first year student numbers could fall by 13,000 in Wales, including 7,000 fewer UK students and more than 5,500 fewer international students, including EU students.

That would be a drop of about 21% on the 61,000 first-years enrolled at Welsh universities in 2018-19.

Amanda Wilkinson, director of Universities Wales, said the report highlighted the "critical financial risks" faced by the sector.

"As well as the important contribution that universities are making to support the national effort in response to Covid-19, universities will also have a vital role to play in the recovery of economies and communities in Wales," Ms Wilkinson said.

"We know that universities in Wales are proportionately more important to the economy of Wales than elsewhere in the UK, generating £5bn of output and nearly 50,000 jobs".

"Welsh Government and UK Government must take urgent action to provide the support which can ensure universities are able to weather these very serious challenges, and to protect students, maintain research, and retain our capacity to drive the recovery of the economy and communities".

The University and College Union in Wales said a "coherent package of support was needed".

Union official Margaret Phelan said: "Universities in Wales have a vital role to play in supporting communities and leading the economic recovery from this crisis, so we expect the Welsh Government to work closely with institutions and Hefcw [the Higher Education Funding Council for Wales] to mitigate the impacts of this crisis on staff and students and ensure no institution is allowed to go to the wall."