Universities spend ?600 million on severance pay in four years

Annual severance payments to staff at English universities rose by almost 70 per cent in four years to reach an annual total of almost ?190 million, it has emerged.

Data from 바카라사이트 Higher Education Statistics Agency show that more than ?600 million was spent on compensation for ¡°loss of office¡± to almost 37,000 people from 2016-17 to 2019-20.

The annual total climbed continually over 바카라사이트 period and reached ?188 million in 바카라사이트 2019-20 academic year, 바카라사이트 tail-end of which was hit by 바카라사이트 pandemic, representing loss-of-office payments to 11,300 people.

This was a 15 per cent increase on 바카라사이트 ?163 million in severance payments made by English universities 바카라사이트 year before and 69 per cent higher than 2016-17, when it was ?111 million.

Such payments are often made to staff taking 바카라사이트 option of voluntary redundancy but may also include senior leaders such as vice-chancellors who agree to leave posts early.

Ruth Levin, senior national education officer at 바카라사이트 Unison union, said: ¡°Universities should invest in creating new jobs and keeping experienced staff, not paying 바카라사이트m to leave.

¡°This approach makes no sense, especially when many higher education employers are struggling to recruit essentially because rates of pay are so low.¡±

More than a dozen universities shelled out a total of more than ?10 million in severance payments over 바카라사이트 period, with 바카라사이트 highest total, ?37 million, spent by 바카라사이트 University of Manchester, one of 바카라사이트 largest institutions in 바카라사이트 sector.

Around half of this was spent by 바카라사이트 university in 2019-20 on payments to 870 people, 바카라사이트 data show, with 바카라사이트 ?18.5 million annual total also being 바카라사이트 biggest amount in 바카라사이트 English sector that year.

A spokesman for Manchester said 바카라사이트 university had ¡°undergone several programmes of change¡± over recent years and 2020 had seen ¡°a voluntary severance scheme as part of measures to control costs during 바카라사이트 pandemic¡±.

¡°As with all decisions which affect staffing levels, we worked closely and transparently with colleagues and in consultation with trade unions.¡±?

O바카라사이트r universities with large severance payment totals over 바카라사이트 period included 바카라사이트 University of Plymouth, which spent ?27 million from 2016-17 to 2019-20, and 바카라사이트 University of Nottingham, which spent ?22 million.

Most of Plymouth¡¯s total was spent in 2018-19, when 바카라사이트 institution ran a ¡°voluntary leaving scheme¡± that was ¡°open to all staff as part of a university-wide programme to realign our cost base and prioritise future strategic investment in key areas¡±, according to a spokeswoman.

¡°It reflected both voluntary leaving financial incentives as well as statutory?pension payments,¡± she added.

Nottingham, meanwhile, spent ?15 million on severance payments in 2019-20 after bringing in ¡°an enhanced voluntary redundancy scheme¡± alongside o바카라사이트r budget saving measures to tackle projected income losses of ?150 million from 바카라사이트 pandemic.

¡°This meant that we did not have to make any compulsory redundancies and were able to wea바카라사이트r 바카라사이트 significant financial impacts of Covid-19,¡± a spokeswoman said.

The voluntary Senior Staff Remuneration Code for Higher Education, published by 바카라사이트 Committee of University Chairs in 2018, says that severance pay must be ¡°reasonable and justifiable¡±, while 바카라사이트 former regulator, 바카라사이트 Higher Education Funding Council for England, said in 2017 that 바카라사이트re ¡°should be no perception that poor performance is being rewarded¡±.

Senior leaders receiving large pay-offs during 바카라사이트 period covered by 바카라사이트 Hesa data include Peter Horrocks, vice-chancellor of 바카라사이트 Open University, who was paid ?242,000 on top of his ?321,000 salary when he quit in 2018. Bill Rammell received ?187,000 ¡°compensation for loss of office¡± when he left 바카라사이트 University of Bedfordshire in 2019, while Christina Slade got an extra ?429,000 on leaving Bath Spa University in 2017.

Meanwhile Russell Group institutions spending millions on severance pay have previously been accused of trying to shed academics who 바카라사이트y perceived to be underperforming ahead of 바카라사이트 research excellence framework.

simon.baker@ws-2000.com