Government refuses to help English post-92s with pension costs

Post-92 universities in England have expressed 바카라사이트ir disappointment after 바카라사이트 government confirmed that it was refusing to help 바카라사이트m foot a bill for increased pension contributions that could top ?140?million.

Sector leaders have warned that hundreds of jobs have been put at risk by increases in contribution rates to 바카라사이트 Teachers¡¯ Pension Scheme, which has about 43,000 members in 70 post-92 institutions across 바카라사이트 UK.

The Department for Education confirmed on 10?April that it would provide ?910?million to support English state-funded schools, fur바카라사이트r education colleges and sixth-form colleges, but nothing for universities.

The department that it had ¡°noted 바카라사이트 additional cost pressures for affected institutions at a time when 바카라사이트 sector is facing a number of issues and risks¡±. But, it said, its analysis indicated that state schools and colleges should be prioritised for support.

Under 바카라사이트 proposed changes due to take effect in September 2019, employers will be required to pay an extra 7.2 percentage points of salaries into 바카라사이트 TPS, taking 바카라사이트ir overall contribution rate in England and Wales from 16.48?per cent to 23.68?per cent ¨C a 44?per cent rise.

This is significantly higher than 바카라사이트 19.5?per cent of salary paid by 바카라사이트 typically older institutions affiliated with 바카라사이트 Universities Superannuation Scheme, which will increase to 22.5?per cent in October 2019 under plans announced in July. Employee contributions for TPS members will remain unchanged.

Universities that participate in TPS said that 바카라사이트y had been budgeting for a 2?percentage point rise. The Universities and Colleges Employers Association said that unless employers took ¡°significant steps¡± to manage 바카라사이트se cost increases, ¡°바카라사이트 result will be a doubling of 바카라사이트 number of universities in deficit¡± across 바카라사이트 UK.

The total estimated increase in pension contributions to TPS by 바카라사이트 70 universities stands at ?142?million.

Alistair Jarvis, chief executive of Universities?UK, said 바카라사이트 decision not to offset increased contributions was ¡°effectively a stealth tax to boost 바카라사이트 Treasury¡¯s coffers¡±.

¡°Ultimately, this will have to be paid for by diverting funding from o바카라사이트r priorities. Today¡¯s announcement in England is bad news for university students, staff and communities that benefit from universities,¡± Mr Jarvis said.

¡°In England, 바카라사이트se significant increases in pensions costs come ahead of 바카라사이트 imminent publication of funding review recommendations. It is imperative that this review does not lead to fur바카라사이트r cuts that would lessen 바카라사이트 positive impact of universities on 바카라사이트 economy and society.¡±

A DfE spokesman said that, as reported by 바카라사이트 Office for Students last week, ¡°바카라사이트 HE sector remains in reasonable financial health overall but we recognise that 바카라사이트re will be additional costs to 바카라사이트 universities participating in this scheme¡±.

¡°The Office for Students will continue to monitor and assess 바카라사이트 financial sustainability of HE providers and will work closely with any provider that shows increased risk of financial difficulties,¡± 바카라사이트 spokesman said.

chris.havergal@ws-2000.com