27 October 2023
UCEA expresses concern over the lack of funding for universities to mitigate government’s Teachers’ Pension Scheme contribution increases
Higher Education Institutions (HEIs) in England with academic staff in the Teachers’ Pensions Scheme (TPS)* were left disappointed by today’s announcement from the Department for Education that there would be no financial support from HM Treasury to help HEIs cushion the 5 percentage point increase in the employers’ contribution rate**. The increase will take place from April 2024 and will see employer contributions for staff in the scheme rise from 23.68% to 28.68%. There is little hope that the Scottish and Welsh Governments will support funding increases for HEIs in those nations which are also expected to see increases in the TPS employer contribution rate.
Raj Jethwa, UCEA’s Chief Executive said:
“At what is already a time of great uncertainty, these eye-watering increases in pension costs only add to the financial pressures facing many universities. This will severely impact their ability to enhance student experience and promote the economic wellbeing of their cities and regions. We urge the Treasury to reconsider."
*The Universities and Colleges Employers Association (UCEA) represents over 170 HEIs and colleges across the UK, including around 80 that participate in the TPS in England. These are mainly the ‘post-92’ modern HEIs that collectively employ approximately 110,000 staff, educate 1.1 million students and are major employers and key contributors to economic growth within their local area.
There are approximately 58,000 active scheme members in the TPS that work in the English HE sector alone, representing around 8% of the total TPS membership.
**Public service pensions 2020 valuations: supplementary documents and Department for Education statement
ENDS
For further information: Please contact Andy Fryer, Head of Communications and Membership (a.fryer@ucea.ac.uk) or Marc Whittaker, Communications and Events Manager (m.whittaker@ucea.ac.uk)
UCEA expresses concern over the lack of funding for universities to mitigate government’s Teachers’ Pension Scheme contribution increases
Higher Education Institutions (HEIs) in England with academic staff in the Teachers’ Pensions Scheme (TPS)* were left disappointed by today’s announcement from the Department for Education that there would be no financial support from HM Treasury to help HEIs cushion the 5 percentage point increase in the employers’ contribution rate**. The increase will take place from April 2024 and will see employer contributions for staff in the scheme rise from 23.68% to 28.68%. There is little hope that the Scottish and Welsh Governments will support funding increases for HEIs in those nations which are also expected to see increases in the TPS employer contribution rate.
Raj Jethwa, UCEA’s Chief Executive said:
“At what is already a time of great uncertainty, these eye-watering increases in pension costs only add to the financial pressures facing many universities. This will severely impact their ability to enhance student experience and promote the economic wellbeing of their cities and regions. We urge the Treasury to reconsider."
*The Universities and Colleges Employers Association (UCEA) represents over 170 HEIs and colleges across the UK, including around 80 that participate in the TPS in England. These are mainly the ‘post-92’ modern HEIs that collectively employ approximately 110,000 staff, educate 1.1 million students and are major employers and key contributors to economic growth within their local area.
There are approximately 58,000 active scheme members in the TPS that work in the English HE sector alone, representing around 8% of the total TPS membership.
**Public service pensions 2020 valuations: supplementary documents and Department for Education statement
ENDS
For further information: Please contact Andy Fryer, Head of Communications and Membership (a.fryer@ucea.ac.uk) or Marc Whittaker, Communications and Events Manager (m.whittaker@ucea.ac.uk)
