The Financial Crisis in UK Universities: What Does It Mean For Staff?

The UK higher education sector is facing a severe financial crisis, with many universities facing significant deficits. This has led to cost-cutting measures, including staff cuts, course closures, and concerns about the long-term sustainability of some institutions. In his latest blog, Clive Mackintosh, an experienced settlement agreement solicitor explores the crisis and the impact on academic, and professional services employees.

The causes of the crisis

Several factors have contributed to this crisis, including:

Decreasing income from international students

‍International students have traditionally been a major source of revenue for UK universities. However, a decline in international student applications has put pressure on university finances.

Rising costs

‍The costs of running universities have increased due to inflation, rising staff wages, and the need to invest in facilities and technology.

Tuition fee constraints

‍Tuition fees for domestic students have not kept pace with inflation, limiting universities' ability to generate revenue.

‍

Impact on academic and professional services employees

The financial crisis has a direct impact on both academic and professional services employees:

Job losses

Many universities are implementing staff cuts to reduce costs. This can lead to redundancies and increased job insecurity for employees.

Increased workload

As universities reduce staff numbers, the remaining employees may face increased workloads and responsibilities.

Course closures

Course closures can lead to job losses for academic staff and reduce opportunities for professional development.

Reduced resources

Universities may cut funding for research, teaching, and professional development, which can impact the quality of education and the morale of employees.

Pay freezes and cuts

Universities may implement pay freezes or cuts to reduce costs, which can affect employees' financial security.

‍‍

What can be done?

The financial crisis in UK universities requires a multi-faceted approach:

Government support

The government needs to provide adequate funding to support the higher education sector.

Diversification of income sources

Universities need to explore new ways to generate revenue, such as through research grants, philanthropy, and commercial activities.

Cost-cutting measures

Universities need to implement cost-cutting measures to reduce expenses, but these measures should be carefully considered to minimise the impact on staff and students.

Collaboration and innovation

‍Universities need to collaborate and innovate to find new ways to deliver high-quality education and research in a financially sustainable way.

‍

Facing potential redundancy in UK universities: A guide for academic and professional services staff

The current financial climate in UK higher education means many universities are facing tough decisions, and unfortunately, redundancy is often on the table. If you're an academic or professional services employee facing potential redundancy, it's a stressful time.

Understanding the redundancy process

Redundancy vs. dismissal

It's crucial to understand the difference. Redundancy occurs when the university no longer needs your role or a similar one. Dismissal is usually related to performance or conduct.

Consultation period

Your university must consult with you (and potentially your union) before making a redundancy decision. This period allows you to raise concerns, suggest alternatives, and understand the rationale behind the decision. Active participation is vital.

Selection criteria

If redundancies are necessary, universities should use objective and non-discriminatory selection criteria. Ask for details about the criteria being used and how they are applied.

Notice period

Your contract and employment law dictate your notice period. Ensure you understand your entitlements.

Appeal process

You have the right to appeal a redundancy decision. Understand the process and deadlines for doing so.

‍

Your rights and entitlements

Redundancy pay

You're entitled to statutory redundancy pay if you've worked for your university for two years or more. Your contract or university policy may offer enhanced redundancy pay, so check these documents carefully.

Garden leave

Your university might place you on garden leave during your notice period. This means you're still employed and paid, but you don't go into work.

Unpaid leave

You may be able to request unpaid leave to explore other opportunities.

Training and development

Some universities offer support for retraining and career development during redundancy processes. Enquire about available resources.

‍

Practical steps to take

Gather information

Collect all relevant documents, including your contract, staff handbook, and any redundancy policies.

Document everything

Keep records of all communications, meetings, and decisions.

‍

Seek Advice

Contact your union (if you're a member) for advice and representation. ACAS (Advisory, Conciliation and Arbitration Service) also provides free and impartial advice on employment rights.

Explore your options

Start looking for new jobs or exploring alternative career paths. Update your CV and online profiles.‍

Financial planning

Review your finances and create a budget. Consider seeking financial advice.

Look after your wellbeing

Redundancy is stressful. Prioritise your mental and physical health. Talk to friends, family, or a counsellor if needed.

‍

Key questions to ask your university employer

• What are the specific reasons for the proposed redundancy?
• What selection criteria are being used? How are they being applied?
• What is the proposed redundancy package, including redundancy pay and any other benefits?
• What is the consultation process and how can I participate?
• What are my options for appeal?
• What support is available for retraining and career development?
  ‍

Remember

You are not alone, many people go through redundancy. Don't panic take a deep breath and approach the situation systematically. Know your rights and entitlements.

Clive Mackintosh is a Solicitor and has substantial experience of advising University Academic and Professional Services staff on their legal rights, having held the position of General Counsel for a leading UK University. For advice on your settlement agreement contact Clive today, call 0330 043 8845, email clive@solicitor.help, or request a call back.