Wales’ new post-16 education minister has revealed plans for an emergency fund for universities amid concerns about an estimated £100m shortfall.

Vikki Howells was quizzed in the Senedd about reports of a rescue plan for universities in England, including a £1bn bail-out and fee rises as well as cuts to courses and staff.

Pressed about the Welsh Government’s own plans, she said: “I'm aware that the UK Government has this emergency fund that they're bringing into play.

“Medr is going to have its own funds to support our institutions here in Wales.”

Medr, a new body which was established in August, now oversees all post-16 education and research – including colleges and sixth forms unlike its predecessor, Hefcw

Ms Howells stressed the emergency funding, which she did not put a number on, would seek to transform the sector as well as bail out universities in financial peril.

She said: “Although we know this is a difficult time, and the sector needs to find ways to reduce costs, we don’t believe there is any Welsh institution that is at risk of failure.”

Cefin Campbell, Plaid Cymru’s shadow education secretary, was not so sure as he warned of a funding crisis facing Welsh universities.

He said: “I believe, if the [Welsh] Government doesn't take urgent action, we could lose these very special institutions – a number of them.”

Mr Campbell added: “Considering the financial hole that faces many of our Welsh universities, thought to be £100m, the pressure is growing on you as a government to work with our universities to find solutions that will protect jobs, students and our wider economy.”

Calling for clarity on the Welsh Government’s position, the former lecturer warned: “Let's not beat around the bush – Welsh universities face serious challenges and the clock is ticking.”

Ms Howell, a former assistant head of sixth form at Caerphilly’s St Cenydd Comprehensive, said the pressures are not unique to Wales.

Ms Howells emphasised that universities are autonomous, “so they will be taking their own decisions, albeit with an input and a steer from myself and from Medr”.

John Griffiths, a Labour backbencher who represents Newport East, raised ColegauCymru’s calls for a national vocational education and training strategy.