Recent evaluations of the Welsh Government’s Diamond student finance reforms highlight a system that is delivering clear benefits for some learners – while leaving significant structural issues unresolved.

The evidence shows that part‑time provision has been a major success, with Wales now having the highest proportion of part‑time undergraduate entrants in the UK. Participation among mature learners and those from more deprived backgrounds has increased significantly, demonstrating that the funding model has widened access where it was designed to do so.

However, the evaluation also reveals persistent challenges. Many prospective students – particularly those from lower‑income households – do not understand what financial support they are entitled to, suggesting that misunderstanding and system complexity remain real barriers to participation. Postgraduate students report financial pressure under a single‑loan structure that often fails to cover both fees and living costs.

Crucially for providers, the reforms were only partially implemented. While student support changed, the expected uplift in institutional funding did not follow, leaving universities under sustained financial pressure and limiting their capacity to meet policy expectations.

Headline participation figures risk obscuring this wider picture. The evidence suggests that low 18‑year‑old participation in Wales is driven less by student finance and more by upstream issues in the Level 3 pipeline, attainment gaps and progression routes.

What education providers should do now

  • Improve student finance communication, particularly for schools, colleges and widening participation cohorts
  • Review part‑time and postgraduate learner experience to identify funding‑related pressures and unintended consequences
  • Stress‑test financial sustainability, given the gap between policy assumptions and actual funding
  • Strengthen collaboration across the Level 3–HE pipeline to address participation barriers beyond student finance

How TIAA can help

TIAA supports education providers with financial sustainability reviews, governance assurance and regulatory risk management in a changing policy environment.

Contact us now if you’d like to discuss how we can help your organisation.