Introduction

This statistical release provides a summary of financial information submitted to the Higher Education Statistics Agency’s finance record by Welsh higher education institutions.

In March 2026, Medr published Financial sustainability of the higher education sector in Wales which provides a more in-depth assessment of the finances of the higher education sector in Wales. There are some differences between the figures in each report. This report includes the University of Wales as it submits data to the HESA finance record, while the financial sustainability report excludes this institution.

Income

Chart 1: Breakdown of income categories at all Welsh HE institutions, 2022/23 to 2024/25

Source: HESA Finance Table 1

The total combined income of Welsh higher education institutions was £1.90 billion in 2024/25. In both 2022/23 and 2023/24, it was £1.98 billion.

Tuition fees and education contracts accounted for £1.04 billion of income in 2024/25, making it the largest source of income. This was a 6% decrease from the 2023/24 of £1.11 billion.

Funding body grants was the only income category to have risen between 2023/24 and 2024/25, increasing by 3% from £276 million to £285 million. As well as funding from Medr, funding body grants can include funding for further education institutions within higher education groups, and some other UK government funding.

Research grants and contracts accounted for £237 million worth of income in 2024/25.

The remaining income categories all saw a decrease in 2024/25.

Expenditure

Note: the calculation of underlying expenditure in this release differs from the 2023/24 release in that technical non-cash accounting adjustments to defined benefit pension schemes are excluded from interest and other finance costs, in addition to staff costs. The 2023/24 release only excluded these from staff costs. This change has been made to align with standard practice in the sector and other Medr publications.

The HESA finance record does not collect restated figures for pension cost adjustments, so the originally submitted figures have been used.

Table 1: Comparison of expenditure types for all Welsh HE institutions, 2022/23 to 2024/25 (£M)

Expenditure type	2022/23 (£M)	2023/24 (£M)	2024/25 (£M)
Total expenditure	1,889	1,679	2,020
Underlying expenditure	1,945	2,056	2,026
Underlying operating expenditure	1,943	2,039	1,977

Sources: HESA Finance Table 1, Table 8 and Table 12.
(Table 1 contains the broad expenditure categories. Table 8 contains the pension adjustments to the ‘interest and other finance cost’ category in the ‘interest and other finance costs’ column, viewable when HESA cost centre group filter is ‘other expenditure’ and HESA cost filter is ‘pension cost adjustment’. Table 12 contains the changes to pension provisions and pension adjustments for ’staff costs’.)

Total expenditure, as reported in statutory accounts, includes both technical non‑cash pension adjustments and one‑off items such as fundamental restructuring costs. The pension adjustments are based on actuarial valuations of the pension schemes and can fluctuate significantly dependent on market value at the point of valuation. This can give a misleading picture of underlying costs.

Underlying expenditure removes technical non‑cash pension adjustments from staff costs and interest and other finance costs.

Underlying operating expenditure further excludes the cost of fundamental restructuring. As restructuring costs are one‑off by nature, they are not part of normal ongoing operations.

In 2024/25, underlying operating expenditure declined by 3% to £1.98 billion.

Chart 2: Breakdown of expenditure categories at Welsh HE institutions, 2022/23 to 2024/25

Sources: HESA Finance Table 1, Table 8 and Table 12.
(Table 1 contains the broad expenditure categories. Table 8 contains the pension adjustments to the ‘interest and other finance cost’ category in the ‘Interest and other finance costs’ column when HESA cost centre group filter is ‘other expenditure’ and HESA cost filter is ‘pension cost adjustment’. Table 12 contains the changes to pension provisions and pension adjustments for staff costs.)

Both staff costs (excluding technical non-cash changes to pension provisions and pension adjustments) and other operating costs declined in 2024/25. Staff costs were recorded at £1.1 billion in 2024/25; they declined by less than 1%.

Other operating costs declined by 8% to £681 million in 2024/25.

Underlying operating position

The underlying operating position is the surplus or deficit from core operational activities at universities. In this publication, it has been calculated by subtracting underlying operating expenditure (which excludes technical non-cash pension adjustments and one-off fundamental restructuring costs) from total income.

In 2024/25, Welsh universities collectively reported an operating deficit of £81 million. This deficit was £56 million in 2023/24. In 2022/23, there was an operating surplus of £40 million.

Data

Figures for 2024/25 are for the year ended 31 July 2025, with previous data years following the same pattern.

This release does not include data from the Open University in Wales, as the Open University only produces financial data on a UK wide basis. The University of Wales (central functions) has been included in this release, meaning that figures may vary slightly from Medr’s Financial sustainability of the higher education sector in Wales, March 2026 report, which did not include the University of Wales in its figures, as the University of Wales is not currently an awarding body for other institutions in Wales and has limited activity as a standalone entity. Further education or sixth form colleges and alternative providers of higher education are also excluded.

The HESA finance record permits providers to amend their figures for each year in the subsequent submission. This publication uses the most recently published figures. The 2023/24 figures will be those taken from the 2024/25 submission and may therefore differ to previous publications. The exception is non-cash pension adjustments included in ‘interest and other finance costs’, where the finance record does not collect an amended value.

The data can be found on the HESA Open Data website which also includes data for individual providers.

Introduction

1. This publication sets out our expectations relating to the collection of in-year student data for Welsh higher education (HE) providers via the Higher Education Statistics Agency (HESA) student record. We are also notifying providers of allocations of funding to be used in the implementation of in-year student data collection.

2. Data about higher education in Wales is a vital source of information that is used for many of Medr’s strategic aims. At present, information and insights about higher education in Wales are only available at a detailed level retrospectively after the end of the academic year.

3. A major development on the horizon for higher education data collection is the implementation of the collection of higher education student data on an in-year basis, starting from academic year 2028/29. Importantly, this means that we and others across Wales will be able to gain insight about what is happening in the higher education sector earlier than we do now, and more aligned to the information we have relating to the rest of the tertiary sector. Some of the uses of the data that will be collected are set out in paragraph 7.

4. This important change will require additional resource to ensure HE providers, working with Medr and Jisc, can successfully implement the new collection.  Insufficient resource risks staff welfare, timely return of data and data quality. We are contributing funding towards that additional resource, as set out in paragraph 18.

In-year data collection

5. This publication follows on from correspondence from Jisc on 4 March 2026 to accountable officers in the UK about the sector transition to in-year student data collection. Through collection by Jisc on the HESA student record, we are requiring Welsh HE providers to return student data in-year at one collection point in addition to the current end of year collection point, from academic year 2028/29. Details of how Jisc, Medr and bodies in the other UK nations are working towards this can be found on the Jisc website.

6. This is a major change to the HE student data landscape. The availability of high quality data about the Welsh higher education sector is of great importance for many aspects of Medr’s work and having data on a more timely basis will provide benefits to Medr and to the sector.

7. In-year student data is being required in order to:

• Have a more timely indication of recruitment of students starting in the autumn term, in particular UCAS entrants and full-time undergraduates, including international students, and take up in particular areas. This can be used to inform financial sustainability and identify areas of risk in providers.
• Better align information about higher education with information available about the rest of the tertiary sector in Wales which is available throughout the year.
• Make fewer ad hoc requests to providers for information during the academic year, and potentially discontinue our Higher Education Students Early Statistics (HESES) survey request.
• Provide more up to date data to be used for funding purposes.
• Have early indications of progress towards measures and indicators developed as a result of Medr’s operational plan.
• Respond to requests from colleagues and external bodies such as the Welsh Government with more timely information and insights.
• Generate the National Student Survey target list with more up to date information.

8. The in-year return will also provide more timely data to use for planning and forecasting purposes by HE providers, including sector data that will be available through the Jisc HEIDI+ data analysis tool.

9. Not all benefits of having in-year student data will be seen in the first year of implementation and achieving these benefits will be an iterative process over the first few years of implementation. Jisc have also set out the benefits in the in-year data collection area of their website.

Funding for the implementation of higher education student data collection

10. To recognise that this will incur additional burden and costs at providers to implement in a time of financial constraints in the sector, we are allocating some funding towards the implementation of in-year data collection to each HE provider that we are requiring to return in-year data (see Category A below).

11. In allocating funding, we are also responding to concerns raised by data returns staff at HE providers about the ability to make an in-year data return in an environment of cuts to resource at providers, and the potential effect on staff welfare in the event of no additional resource being available. Data returns staff also reported that not all senior staff in providers were fully aware of the new requirements for in-year student data, and so this publication also aims to aid understanding of the requirements within HE providers.

12. Funding for this specific purpose aids providers in meeting Medr’s Staff and Learner Welfare regulatory condition and builds on the recommendations of the independent review of the implementation of the Data Futures programme.

13. We are also concerned that HESA’s risk status for Welsh HE providers puts Welsh HE providers at a higher risk on average with respect to student data returns than the UK as a whole and so want to ensure that we provide some mitigation for that risk for in-year student data collection.

14. We require providers to return in-year data if they are either regulated or funded by Medr for their HE provision. This means that if an HE provider has a HESA subscription and currently returns annual end of year student data on the HESA student record, they will be required to return in-year student data if they have a Medr fee and access plan, are on the Medr HE register and/or Medr provides funds to them for their HE provision. HE providers that currently fall into this category are:

Category A
University of South Wales
Aberystwyth University
Bangor University
Cardiff University
University of Wales Trinity Saint David
Swansea University
Cardiff Metropolitan University
Wrexham University
Open University in Wales
Grŵp Llandrillo Menai
Grŵp Colegau NPTC Group of Colleges
Gower College Swansea
Coleg Cambria

15. HE providers that are subscribed to HESA that return data because they have specifically designated course provision and are not regulated and not funded by Medr for their HE provision, would not fall into the above category, this currently includes:

Category B
Coleg Gwent
Cardiff and Vale College
Centre for Alternative Technology
St Padarn’s Institute

16. If a provider in Category B were to become a regulated provider by applying and succeeding to be on the HE register, they would move into Category A, and would become eligible for the in-year data collection implementation funding.

17. The total implementation funding available for the sector is just over £600k for academic year 2026/27. We are starting the funding in 2026/27 to acknowledge the work needed in the run-up to the implementation of the collection. We are aiming to provide similar levels of funding in academic years 2027/28 and 2028/29, subject to availability of funds. Funding will be shared between HE providers, with universities receiving a fixed amount and smaller providers receiving a lesser fixed amount according to their size. Funding is allocated with the expectation that it will only be spent on costs relating to the implementation of the return of in-year student data collection.

18. Funding allocations per provider are set out below:

Type of HE provider (regulated and/or funded for HE provision)	2026/27 funding per provider (£)
University	65,000
FEC or AP with ≥ 500 HE enrolments in AY 2024/25	15,000
FEC or AP with < 500 HE enrolments in AY 2024/25	10,000

FEC = further education college; AP = alternative provider; AY = academic year
Data source for enrolments = HESA student record 2024/25 standard registration population

19. Our expectations on how this funding will be spent are set out below:

• Funding is to be spent on implementation costs for in-year data collection and should be in addition to any current resource or expenditure, or planned resource or expenditure, relating to student data returns.
• Funding should be spent on activity that is in addition to business as usual for the end of year student return.
• Funding can be spent on staff resource in data returns or IT teams, IT and systems improvements and other costs relating to being able to successfully return an in-year student return, such as improvements in data capture to enable data to be available for return earlier.

20. HE providers are expected to ensure that sufficient resource is available, including any that utilises the Medr implementation funding, to be able to successfully implement in-year data collection to the required timescale, without detriment to staff welfare or the usual end of year student data collection.

 21. HE providers are strongly encouraged to take part in trial activity in 2027/28 relating to the in-year return in order to be fully prepared for the first full in-year return in 2028/29. Details of the activity and how to be involved will be communicated to providers by Jisc.

Internal audit requirements

22. We expect HE providers in Category A to include checks on the implementation of the in-year data collection and how it is resourced as part of their annual internal audit of HE data systems and processes. The audit report for the internal audit is returned to Medr in the summer of each year and we expect the report returned to us in summer 2027 to include a view of the readiness and risk relating to the in-year student data return as well as confirmation that the Medr implementation funding is being utilised to prepare for the return and to reduce the associated risks. More detail will be included in the updated internal audit notes for guidance to be published at the end of the year.

Response required

23. Heads of higher education providers in both Categories A and B are asked to confirm receipt of this publication and understanding of the expectations set out in this letter, by responding to Hannah Falvey, Head of Higher Education Statistics, [email protected], by 29 May 2026.

Further information

24. Any queries regarding this publication should be directed to Hannah Falvey ([email protected]).

Introduction

1. This publication sets out the 2026/27 academic year (AY) allocations for providers in receipt of Targeted Employability Support for Higher Education (HE) Students (TESS).

2026/27 funding and requirements

2. Total investment available to support TESS activity for the period 1 August 2026 to 31 July 2027 is £2m.

3. Investment must be used in accordance with Medr’s current guidance, as set out in Medr/2025/09 TESS: 2025/26 to 2026/27 Delivery Plans and 2025/26 allocations. It must also be used to deliver the priorities and activities outlined within providers’ approved 2025/26 to 2026/27 delivery plans.

4. Providers may propose amendments to their approved delivery plan through the 2025/26 End of Year Report, and are expected to engage with Medr at an early stage to discuss any proposed changes for the 2026/27 academic year.

2026/27 allocations

5. 2026/27 provider allocations are set out in the table below. The allocations have been calculated using the latest verified HESA data for 2024/25 and by applying the funding methodology set out in paragraphs 37-41 of Medr/2025/09 TESS: 2025/26 to 2026/27 Delivery Plans and 2025/26 allocations.

Provider	Total funding (£)
University of South Wales	312,316
Aberystwyth University	166,565
Bangor University	152,212
Cardiff University	330,000
University of Wales Trinity Saint David	137,207
Swansea University	330,000
Cardiff Metropolitan University	253,599
Wrexham University	100,000
The Open University in Wales	178,101
Grŵp Llandrillo Menai	25,000
Grŵp NPTC Group	5,000
Gower College Swansea	5,000
Coleg Cambria	5,000
Total	2,000,000

6. Medr/2026/05 Core higher education teaching funding allocations for Coleg Cambria 2025/26 confirms that Coleg Cambria was eligible for Medr investment for its higher education provision from AY 2025/26, following approval of its 2025/26 to 2026/27 Fee and Access plan. Since then, discussions have taken place with Coleg Cambria on extending TESS investment to support Coleg Cambria HE students funded directly by Medr. As a result, and taking account of Coleg Cambria’s eligible student data, it has been agreed that Coleg Cambria will receive investment from 2026/27 on the same funding principles as Grŵp NPTC and Gower College Swansea. This investment is subject to the submission of a satisfactory delivery plan for 2026/27 and complying with Medr’s ongoing monitoring processes, in line with the arrangements set out in Medr/2025/09 TESS: 2025/26 to 2026/27 Delivery Plans and 2025/26 allocations.

2026/27 monitoring and payment arrangements

7. We will pay 60% of a provider’s allocation to Higher Education Institutions (HEIs) and Grŵp Llandrillo Menai following approval of their 2025/26 End of Year monitoring report and 2026/27 expenditure profile. The remaining 40% of the allocation will be released in April 2027 subject to satisfactory 2026/27 interim monitoring, and on the condition that a provider has committed at least 75% of the initial payment. 

8. The allocations for Grŵp NPTC and Gower College Swansea will be paid in full following approval of their 2025/26 End of Year monitoring report. The allocation for Coleg Cambria will be paid in full in September 2026, subject to approval of a satisfactory 2026/27 delivery plan.

9. Payments are strictly subject to the governing body’s acceptance of, and ongoing compliance with, Medr’s general conditions for the payment of grant funding. These conditions are set out in the 2026/27 Terms and Conditions of Grant: Higher Education Institutions, which will be published on the Medr website in advance of the start of the 2026/27 academic year.

10. An interim monitoring report will be required in February 2027 setting out activity to the end of December 2026, including the number of individuals supported (broken down by students, franchised students and graduates), as well as data on their demographic breakdown. In addition, we will require data on the number of individuals engaged in work related experiences and the number of individuals supported who consider their employability has improved to the point that they are no longer receiving enhanced employability support. Providers are responsible for ensuring that all the information and required data is included in the report, so that there is a robust basis for assessing the impact of the funding and the students’ outcomes.

11. An End of Year Report will be required in September 2027 requesting updated information on activity, data and impact of our investment to 31 July 2027. Providers will be required to confirm 2026/27 actual expenditure. We reserve the right to recover any funding that has not been spent (i.e. paid out) by 31 July 2027. A number of case studies will be required, proportionate to the level of investment. The case studies need to be suitable for publication.

12. We will provide templates for the Interim Monitoring Report, End of Year Report and case studies in separate correspondence.

Engagement with Medr

13. In addition to formal monitoring and reporting requirements, Medr will seek to supplement monitoring returns with ongoing dialogue with providers to support a shared understanding of delivery, progress, and emerging issues. We remain open to constructive and proportionate engagement throughout the academic year, recognising the value of discussion in supporting effective delivery, managing risk, and addressing matters as they arise. This approach is intended to complement, rather than replace, formal monitoring processes and to support continuous improvement and effective use of our investment.

14. Providers wanting to make in-year changes to their 2026/27 delivery plan, or material variations to the approved 2026/27 expenditure profile, are required to engage with Medr in the first instance.

Timeline

15. The timetable for the reports and payments is presented in the table set out below.

Description	Date
2025/26 End of Year Report and Case Study submission deadline (all HE Providers)	18 September 2026
2026/27 allocation: Coleg Cambria	100% payable in September 2026, subject to approval of Delivery Plan
2026/27 allocation: First Instalment	HEIs and Grŵp Llandrillo Menai: 60% payable on approval of 2025/26 end‑of‑year monitoring   Gower College Swansea and Grŵp NPTC: 100% payable on approval of 2025/26 end‑of‑year monitoring
2026/27 Interim Monitoring Report submission deadline (HEIs and Grŵp Llandrillo Menai)	12 February 2027
2026/27 allocation: Final Instalment	HEIs and Grŵp Llandrillo Menai: 40% payable in April 2027, subject to approval of 2026/27 interim monitoring report
End of Year Report submission deadline (all HE Providers)	17 September 2027

Further information

16. Any queries regarding this publication should be directed to Rachel O’Gorman ([email protected]).

Assessing the impact of our policies

17. We carried out an impact assessment to help safeguard against discrimination and promote equality on Medr/2025/09 TESS: 2025/26 to 2026/27 Delivery Plans and 2025/26 allocations, which covered the two-year delivery plan period and 2025/26 allocations for TESS funding. In drafting this publication, we have reviewed this impact assessment and continue to anticipate a positive impact on race, sex, disability, age, religion and belief. We also considered the impact of this policy on the Welsh language, Welsh language provision within the HE sector in Wales, socio-economic characteristics and potential impacts towards the goals set out in the Well-Being of Future Generations (Wales) Act 2015.

Introduction

1. The Welsh Government’s funding settlement to Medr for 2025-26 included £3 million digital capital funding ringfenced for FE. This funding has been maintained for 2026-27 and, subject to confirmation in future budgets, this is expected to become ongoing funding.

2. This funding is intended to support FE institutions in developing longer-term and more strategic approaches to investment in digital equipment, devices and infrastructure (which are required to enable digital delivery) and to maintain robust and resilient digital services and systems. These aims are in line with the Vision and Aims of the Digital 2030 strategic framework for digital learning, which is due to be refreshed in the coming months.

3. We are asking each FE institution to develop and submit a three-year digital capital investment plan by 10 February 2027. Future allocations of digital capital funding up to and inclusive of AY2028/29 will be awarded on the basis of this plan.

Timelines for Year 1 (academic year 2026/27):

Timing	Milestone or action
c.18 December 2026	Interim capital payment (50% of allocation) will be processed during December
By 10 February 2027	Three-year digital capital investment plan required from each institution (Annex B)
c.19 March 2027	Subject to the receipt of digital capital investment plans, the remaining 50% of capital allocation will be processed during March
By 21 July 2027	End-of-year expenditure reporting required (Annex C to be added in early 2027)

This consultation provides an opportunity to input into shaping the future apprenticeship funding model.

Apprenticeships are a key lever for raising skill levels, driving productivity and helping grow a skilled and diverse workforce that is fit for purpose.

The new programme will be more agile and responsive to ensure the right qualifications and skills are delivered to meet employer, learner and economic needs from August 2027.

In September 2025 we undertook a consultation, which included engagement with tertiary education providers, industry bodies, employers and other stakeholders.

The outcomes have helped inform the design of the new apprenticeship programme and the principles of a new funding model.

We have now developed a new funding model which responds to the feedback received from the apprenticeship consultation. This includes making the model more learner centric and flexible to meet changing demands.

Engagement events are taking place in May 2026 on the new programme design.

We are now seeking views on:

• the high-level principles of the new funding model
• benefits of the new funding model
• unintended consequences of implementing the new funding model
• additional apprenticeship costs

We would welcome consultation responses from individuals who have experience of delivering apprenticeships and others with an interest in the new apprenticeship programme. Hearing from stakeholders is key to help shape the new funding model and fully consider any unintended consequences.

This consultation focuses on the funding model for apprenticeships at levels 2-5. We are undertaking further work to understand whether changes are required to the funding model for degree apprenticeships.

We will hold a consultation event online on Wednesday, 3 June 2026, 10:00 – 11:30.

To have your say, please complete the reply form at Annex A and send to [email protected] by 19 June 2026.

Medr has confirmed more than £1 billion of investment to support tertiary education, research and innovation across Wales for the 2026/27 academic year.

The funding, which will support around 330,000 learners, provides core and targeted investment for higher education, further education, apprenticeships, local authority sixth forms and adult community learning, alongside continued support for research and innovation.

Medr’s total budget for the 2026‑27 financial year, including capital, is £1.018 billion, with overall academic year investment reaching £1.03 billion. This reflects an increase on the previous year and incorporates additional funding to support areas such as apprenticeships, learner wellbeing, participation and research and innovation.

Supporting learners and providers across Wales, the allocations confirm:

• £150.5 million for apprenticeships in 2026‑27, an increase on the previous year, supporting provision from foundation to degree apprenticeships.
• Increased investment in junior apprenticeships, expanding opportunities for learners aged 14–16.
• Over £460 million in core funding for further education, both a unit rate increase and accounting for variances in learner participation within the funding methodology.
• £121.7 million to support local authority maintained school sixth forms. Again, this reflects both a unit rate increase and accounts for variances in learner participation within the funding methodology.
• Continued funding for adult community learning, supporting provision for learners aged 19 and over.
• More than £98 million for higher education research and innovation, including Quality Research (QR), postgraduate research training and the Research Wales Innovation Fund (RWIF).

Alongside core funding, Medr has confirmed targeted investment to support learner wellbeing, access and participation, employability and skills, data and digital capability, and sector‑wide strategic priorities.

James Owen, Chief Executive of Medr, said:

“Medr was created to bring greater coherence and collaboration to our tertiary education and research system. This increased investment in our tertiary sector supports this aim, helping providers deliver high-quality education, research and innovation for learners at every stage while also strengthening the sector’s ability to respond to future challenges.

“We recognise the financial pressures being faced both by the sector and across Government budgets and will continue to review our investment to better align to the long term ambitions in our Strategic Plan alongside the new Government’s priorities. In doing so we will continue our work with providers and partners to ensure every pound invested by Medr translates to a learner, a community or a local economy able to look to the future with increased confidence and prosperity.”

Full tertiary funding investment for the 2026/27 academic year including individual provider allocations and detailed methodological information:

Tertiary Investment Allocations for 2026/27

1. This publication sets out our overall investment for Medr-funded tertiary education and research providers for the academic year (AY) 2026/27. This document also includes individual provider allocations for all core investment and some targeted budgets, where available.

2. Our confirmed funding letter highlights that our revenue budget for financial year (FY) 2026-27 is set at £1,005.008 million. This is an increase of £29.6589 million (3.04%) compared to the final budget, including in-year allocations received in FY 2025-26 that have been baselined, of £975.349 million. Including capital, Medr’s total budget for FY 2026-27 is £1,018,508,000.

Total investment for the 2026/27 academic year

3. This summarises the overall academic year funding which are set out in more detail throughout the publication.

	AY 2025/26 £ million	AY 2026/27 £ million
Ring-fenced
Apprenticeship budget	143.277	150.535
Junior apprenticeships	0.600	1.000
Youth Entrepreneurship	0.360	0.360
REACH	0	0.400
Estyn	0	2.056
Core
Local authority sixth form	119.221	121.682
Local authority adult community learning	6.479	6.479
Further education mainstream	434.894	466.424
Increased participation budget	21.126	6.250
Higher education research and innovation	97.121	98.121
Higher education teaching funding	71.732	76.461
Degree apprenticeships	9.411	10.111
Part-time fee waiver	0.200	0.200
Targeted
Learner wellbeing	49.020	49.840
Access and wellbeing	7.764	7.025
Employability and skills	3.005	3.005
Research and innovation	2.000	2.000
Student/learner and workforce	8.075	6.795
Data and technology	3.500	3.500
Central programme budget	0	3.000
Strategic developments	3.500	0.500
Capital
Higher education	10.000	10.000
Further education digital	3.000	3.000
Total	994.285	1028.744

4. This publication includes all formula-driven core grants. Where possible, grants allocated via targeted budgets, which may be subject to the provision of a specific expenditure plan or strategy, are also included. Further publications will provide details of allocations and guidance, where required, for specific investment streams.

5. The allocations in this paper do not take account of any potential in-year funding adjustments for FY 2026-27 that may be applied by the Welsh Government. Any such funding adjustments will result in a revision to the individual allocations.

From 1 April 2026 any proposal to establish, close, or significantly alter school sixth form provision in Wales’s maintained schools must be submitted to Medr for consideration and consultation.

Medr was established in August 2024, for the first time bringing the regulation and funding of different parts of tertiary education in Wales under one body. This brings with it a number of advantages, not least in ensuring that learners have access to a consistently high quality education whatever pathway they choose. The new approach does, however, require changes in order to better align different parts of the tertiary sector with each other.

If you have been involved in the review of local education provision or in planning changes to school structures, you will be aware that the process is complex, highly regulated, and dependent on coordination between multiple partners.

With the introduction of the Tertiary Education and Research Act (TERA), and publication of the revised Code on School Organisation (“the Code”) on 1 April 2026, Medr now has formal statutory role within the process of school reorganisation of sixth form provision. This means any proposal to establish, close, or significantly alter sixth form provision in Wales’s maintained schools must be submitted to Medr for consultation. This ensures that decisions relating to post‑16 education are informed, evidence‑based, and aligned with national priorities.

Our statutory role

Schedule 4 of TERA gives Medr clear legal responsibilities when it comes to changes affecting sixth forms. These responsibilities apply across all local authority maintained schools, as well as voluntary and foundation schools that operate sixth forms.

View Medr's local authority and school sixth forms website page

Under the legislation, Medr may require:

• Local authorities to bring forward proposals to open or close stand‑alone sixth form provision, or to expand or reduce existing sixth form capacity.
• Governing bodies of voluntary or foundation schools to propose changes to their sixth form offer where needed.

While these powers exist in legislation we do not expect to be in a position where the use of such interventions is anticipated.

Local authorities also have specific duties of their own. During the formal statutory consultation period for any proposal involving:

• establishing or closing a sixth form
• changing the medium (language) of instruction
• significantly expanding or reducing capacity

…they must consult Medr. This enables us to provide a formal response grounded in evidence, learner outcomes and the long‑term sustainability of Wales’s post‑16 system.
 
Supporting early engagement of sixth form proposals

While our formal role takes effect during statutory consultation, we strongly encourage local authorities to engage with us much earlier—at the initial thinking or exploratory stage.

This early dialogue helps us:

• Share evidence and constructive advice before proposals take shape
• Support the development of coherent and well‑designed options
• Build shared understanding between local priorities and our wider Strategic Plan
• Ensure that any future statutory response is informed, substantive and genuinely helpful

Although this early engagement is not part of the statutory process, it plays a vital part in strengthening collaboration and ensuring proposals are robust and learner‑focused from the outset.

Aligning proposals with Medr’s Strategic Plan

All proposals relating to sixth form reorganisation should show how they align with the priorities set out in our Strategic Plan.

By engaging early, local authorities can better understand how their plans fit within national ambitions for a coherent, high‑quality and sustainable post‑16 system across Wales. This alignment helps ensure that changes to provision support both local needs and system-wide improvement.

New framework guidance in development

To further support local authorities, we are currently developing new framework guidance—co‑created with stakeholders from across Wales. This framework will help shape thinking before proposals enter statutory consultation, ensuring they are:

• Aligned with Medr’s statutory duties and strategic objectives
• Grounded in strong, transparent evidence
• Designed to meet the long‑term needs of learners and communities
• Supportive of a coherent national post‑16 landscape

More details on this new guidance will be shared later this year.

If you’d like to discuss potential proposals or explore ideas at an early stage, the Medr team is always happy to help. Early conversations can make a meaningful difference in developing strong, future‑proofed sixth form provision for learners across Wales.

Introduction

1. This publication sets out the arrangements and timing for additional mainstream funding of £1,333,223.67 to be provided by Medr to further education (FE) institutions and £361,058.86 to Local Authorities (LA) to enable FE institutions and for Sixth Form schools via LAs to maintain pay parity for teaching staff. This will be done by increasing the unit rate of funding.

2. This has been allocated in the FY 2026-27 and relates to the remainder of AY 2025/26, 1 April 2026 to 31 July 2026. This additional funding will be paid in one full instalment in April 2026.

Additional funding amounts and timings

3. An FE mainstream allocation of £1,333,223.67 will be allocated to FE institutions via an increase in the unit rate in the FY 2026-27 and relates to AY 2025/26.

Further education institution	FE allocation
Adult Learning Wales	£25,307.33
Bridgend College	£68,036.33
Coleg Cambria	£163,334.00
Cardiff and Vale College	£166,054.00
Coleg Sir Gâr	£87,517.67
Coleg Gwent	£190,374.67
Coleg y Cymoedd	£142,011.00
Gower College Swansea	£115,963.33
Grŵp Llandrillo Menai	£146,918.67
The College Merthyr Tydfil	£43,185.00
NPTC Group of Colleges	£100,926.67
Pembrokeshire College	£52,691.33
St David’s Catholic Sixth Form College	£30,903.67
Total	£1,333,223.67

4. An LA mainstream allocation of £361,058.86 will be allocated to Local institutions via an increase in the unit rate in FY 2026-27 and relates to AY 2025/26 as shown in the table below.

Local Authority	LA allocation
Isle of Anglesey County Council	£8,912.00
Gwynedd Council	£13,356.57
Conwy County Borough Council	£18,398.29
Denbighshire County Council	£13,161.71
Flintshire County Council	£15,984.57
Wrexham County Borough Council	£3,957.71
Powys County Council	£15,254.29
Ceredigion County Council	£12,194.29
Pembrokeshire County Council	£10,161.71
Carmarthenshire County Council	£22,453.14
Swansea Council	£22,842.86
Neath Port Talbot Council	£7,714.86
Bridgend County Borough Council	£25,362.86
Vale of Glamorgan Council	£26,820.57
Rhondda Cynon Taf County Borough Council	£31,554.29
Cardiff Council	£57,464.56
Caerphilly County Borough Council	£13,115.43
Torfaen County Borough Council	£1,407.43
Monmouthshire County Council	£13,378.86
Newport City Council	£27,562.86
Total	£361,058.86

Introduction

1. This publication sets out the arrangements and timing for additional mainstream funding of £2,689,333.33 to be provided from Medr to further education (FE) institutions and £458,333.33 to local authorities (LA) for National Insurance contributions in financial year (FY) 2026-27.

2. The Welsh Government has allocated this additional funding to Medr in the FY 2026-27 for National Insurance contributions. Additional funding for National Insurance contributions will be paid in full in one instalment in April 2026, in the FY 2026-27, and relates to AY 2025/26.

Additional funding amounts and timings

3. An FE mainstream allocation of £2,689,333.33 will be allocated to FE institutions for National Insurance contributions for the AY 2025/26 in the FY 2026-27, as shown in the table below.

Further education institution	FE | Contribution towards increased NI costs
Adult Learning Wales	£37,849.23
Bridgend College	£148,258.02
Coleg Cambria	£367,888.29
Cardiff and Vale College	£315,000.70
Coleg Sir Gâr	£190,124.63
Coleg Gwent	£296,850.74
Coleg y Cymoedd	£213,624.47
Gower College Swansea	£261,722.03
Grŵp Llandrillo Menai	£375,083.97
The College Merthyr Tydfil	£59,551.88
NPTC Group of Colleges	£244,113.54
Pembrokeshire College	£123,341.98
St David’s Catholic Sixth Form College	£55,923.85
Total	£2,689,333.33

4. An LA mainstream allocation of £458,333.33 will be allocated to LA institutions for National Insurance contributions for the AY 2025/26 in the FY 2026-27, as shown in the table below.

Local Authority	FE | Contribution towards increased NI costs
Isle of Anglesey County Council	£11,338.33
Gwynedd Council	£17,221.00
Conwy County Borough Council	£23,599.67
Denbighshire County Council	£16,886.33
Flintshire County Council	£20,673.00
Wrexham County Borough Council	£4,986.00
Powys County Council	£19,868.33
Ceredigion County Council	£15,922.00
Pembrokeshire County Council	£13,125.00
Carmarthenshire County Council	£29,099.67
Swansea Council	£28,945.33
Neath Port Talbot Council	£9,643.33
Bridgend County Borough Council	£32,027.33
Vale of Glamorgan Council	£34,534.67
Rhondda Cynon Taf County Borough Council	£38,725.67
Cardiff Council	£72,651.67
Caerphilly County Borough Council	£16,113.33
Torfaen County Borough Council	£1,751.34
Monmouthshire County Council	£17,435.00
Newport City Council	£33,786.33
Total	£458,333.33

5. This funding relates to the period 1 April 2026 to 31 July 2026.This additional funding for National Insurance contributions for AY 2025/26 will be paid in FY 2026-27 in one full instalment in April 2026.

We are running a series of events for apprenticeship providers, employers, training professionals, and sector partners to feed into the design of the new Welsh Apprenticeship Programme.

The new Welsh Apprenticeship Programme will start on 1 August 2027.

Join us to find out more about the new apprenticeship design, join discussions, test key elements, and share feedback:

• Llandudno – 13 May
• Llandrindod Wells – 14 May
• Cardiff – 20 May

Register through Eventbrite

In September 2025, we held a 6-week consultation exercise that sought views from stakeholders, including training and tertiary education providers, industry representatives, employers, learners and local authorities, to help shape the new programme.

In February 2026 we reported on the outcome of the consultation, and on the key next steps in developing and implementing the new apprenticeship programme 2027.

The events

We are inviting apprenticeship providers, employers, training professionals, and sector partners to take part in a series of engagement events across Wales.

These sessions will test and refine the design of the new apprenticeship programme, ensuring it is responsive, resilient, and aligned with the needs of learners, employers, and the wider Welsh economy.

By taking part, you will help shape a programme that supports high‑quality learning, meaningful progression, and sustainable skills development for the future workforce.

Enquiries: [email protected]

Register through Eventbrite

Medr has today formally launched and published a new, cross-tertiary education regulatory system, the first of its kind in the UK.

This milestone is the product of extensive engagement across the tertiary education sector, including two formal consultation periods, and lays the foundations for a joined-up regulatory approach that strengthens learner engagement, drives best practice, and helps ensure value for public money across the sector.

The published regulatory system includes:

• Medr’s regulatory approach
• Statement of intervention powers
• The full regulatory framework, including conditions of registration or funding
• The Quality Framework for tertiary education
• The Learner Engagement Code
• A frequently asked questions document setting out responses to common queries raised during engagement
• A glossary of key terms

Associated materials outline how the system applies across different parts of the tertiary sector and sets clear expectations for both registered and funded providers in respect of a range of conditions.

Bethan Evans, Executive Director Regulation and Analysis at Medr said:

“Regulation can often feel procedural, but this cross-tertiary framework – the first of its kind in UK – will make a lasting, positive difference to learners across our tertiary education sectors.

“We’re very grateful for the insight and feedback offered by learners, providers and interested parties throughout the process to date and, while this marks an important milestone, it is by no means the end of the journey. The sector continues to evolve, and our regulatory approach will be under continuous review so that it can evolve with it.

“With the publication of this thorough and wide-ranging regulatory framework, the iterative journey towards a fairer, more consistent and outcome-focused tertiary education regulatory approach in Wales can now begin in earnest.”

Medr is developing an online application portal which will allow providers to submit the information needed in order to apply to become registered. The application process will open for providers shortly, and further information will be provided. A register, applicable to all providers of higher education, will then be operational from August.

Full details on what the new regulations mean for you or your education provider can be found on our website:

Medr's Regulatory Framework