Commenting on the Post-16 education and skills white paper, Raj Jethwa, UCEA Chief Executive said:
“UCEA welcomes the willingness of the government to engage with the sector on the financial challenges* facing Higher Education institutions required to offer the Teachers’ Pension Scheme, and we look forward to working with government and other stakeholders to address them”.
*Financial impact
ENDS
For further information from UCEA, please contact Andy Fryer, Head of Communications and Membership (a.fryer@ucea.ac.uk), Marc Whittaker, Public Affairs and Events Manager (m.whittaker@ucea.ac.uk), Armelle Griffin (a.griffin@ucea.ac.uk), or Ashleigh Rigden (a.rigden@ucea.ac.uk), Communications Officers.
“UCEA welcomes the willingness of the government to engage with the sector on the financial challenges* facing Higher Education institutions required to offer the Teachers’ Pension Scheme, and we look forward to working with government and other stakeholders to address them”.
*Financial impact
- In 2017-18 the Teachers’ Pension Scheme (TPS) employer contribution rate was 16.48% and Higher Education Institutions (HEIs) in England and Wales paid a combined £300m in employer contributions into the TPS.
- Following the increase in TPS contributions from September 2019, affected HE employers paid approximately £600 million in additional TPS contributions over the period September 2019 to July 2023.
- The 2020 valuation result (implemented in 2024) led to a further increase in the TPS employer contribution rate, which is estimated to have cost an additional c£40 million in 2023-24 (part year) and c£125 million in 2024-25 (full year). These additional TPS costs are payable every year until at least April 2027, when the result of the 31 March 2024 TPS valuation is expected to be implemented.
- Following this 12-percentage point increase in the TPS employer contribution rate over two valuation cycles HEIs are now forecast to pay around £700m in 2024-25.
ENDS
For further information from UCEA, please contact Andy Fryer, Head of Communications and Membership (a.fryer@ucea.ac.uk), Marc Whittaker, Public Affairs and Events Manager (m.whittaker@ucea.ac.uk), Armelle Griffin (a.griffin@ucea.ac.uk), or Ashleigh Rigden (a.rigden@ucea.ac.uk), Communications Officers.
