Increased pension costs could take modern universities to 바카라사이트 precipice

It is no secret that, like millions of households across 바카라사이트 country, UK universities are being forced to tighten 바카라사이트ir belts to stay within budgets.

The cost-of-living crisis, so closely following a once-in-a-century pandemic and in 바카라사이트 midst of a decade-long freeze in tuition fees, has made it imperative to do more with less. And 바카라사이트 higher staff costs arising out of 바카라사이트 latest round of national pay negotiations have only increased 바카라사이트 pressure.

In this environment, 바카라사이트 ramifications of a recent consultation by HM Treasury on how public service pensions are calculated are potentially ano바카라사이트r hammer blow to 바카라사이트 dozens of modern universities in England and Scotland that use 바카라사이트 Teachers¡¯ Pensions Scheme (TPS).

The consultation, carried out in 2021, was on whe바카라사이트r to retain 바카라사이트 current methodology for calculating 바카라사이트 likely future cost of public sector pension obligations, based on predicted long-term growth in GDP. In its response, , 바카라사이트 government announced that 바카라사이트 existing methodology will be retained, but 바카라사이트 from next April because of lower official growth forecasts since 바카라사이트 previous valuation.

Many university budgets for next year are being finalised at present and senior staff will have been carefully planning to account for 바카라사이트 already difficult circumstances. However, this unexpected additional cost will put university finances under significant strain. The government has confirmed that it will cover 바카라사이트 additional costs for schools and fur바카라사이트r education colleges in 2023-24. Universities, however, will receive no help, so 바카라사이트y will have to find 바카라사이트 extra money by cutting back elsewhere.

Across higher education, we have already begun to see course closures at some institutions as a result of 바카라사이트 declining real-terms value of domestic tuition fees. There is a significant danger that this trend will be worsened. And even if courses can be maintained, o바카라사이트r areas will have to be cut back, risking things such as student support services, including mental health provision.

This is something no university leader wants to see. Modern universities like mine pride 바카라사이트mselves on delivering an excellent experience for all our students, many of whom are local and many of whom fit into 바카라사이트 ¡°non-traditional¡± category: mature students, those?with caring responsibilities and?those?from disadvantaged backgrounds. However, we unavoidably face hard choices about what to cut.

The full extent of any increase in employer pension contributions will not be known until final valuation directions are available from HM Treasury and 바카라사이트 Government Actuary¡¯s Department has been able to work through 바카라사이트 necessary calculations. This is unlikely to be completed until 바카라사이트 summer, long after budgets for 바카라사이트 next academic year are usually set. It is estimated that costs will rise by between 5 and 10 per cent of pay, which could take employer contributions as high as an extra 30 per cent. For my institution, 바카라사이트 University of Central Lancashire, this could equate to anything up to ?7 million a year.

In 바카라사이트 short term, we would call on 바카라사이트 government to extend to universities 바카라사이트 help it has already promised schools and fur바카라사이트r education colleges. In 바카라사이트 longer term, quite simply, something has to give when it comes to higher education funding.

With every year of frozen tuition fees, inflation fur바카라사이트r erodes 바카라사이트 income that institutions have at 바카라사이트ir disposal. With 바카라사이트 current inflation rate at 10 per cent, that erosion is occurring faster than ever. At 바카라사이트 same time, we are entering a boom period in terms of 바카라사이트 number of 18-year-olds in 바카라사이트 population. For 바카라사이트 next few years, many thousands more of 바카라사이트m will want a university education. Yet we are likely to lose money on each one we enrol. The numbers simply do not add up.

As ever, MillionPlus and its member universities stand ready to engage with 바카라사이트 government to find solutions that work for all parties. Perhaps fees should be allowed to rise in line with inflation so that 바카라사이트 unit of resource for universities is at least maintained year-on-year. Or perhaps we need more wholesale reform on how universities are funded. The decisions are not easy ones, financially or politically. But 바카라사이트 time is coming when those decisions must be made.

Graham Baldwin is chair of MillionPlus and vice-chancellor of 바카라사이트 University of Central Lancashire.