A sharp rise in Pension costs will affect student support servicesUK News
As per the latest pension news, Universities part of TPS (Teacher’s Pension Scheme) are expected to increase teachers’ pensions by April 2024. Employer contributions will be revised from 23.6 % to 28.6% by 5 per cent. However, universities have stated that these recent reformations in the pension scheme by the government are posing a problem for them. Post-92 universities are using TPS, which is the second-largest pension scheme in the UK; however, the primary one is the Universities Superannuation Scheme (USS).
According to University leaders, this recent development will directly impact the student support services, resulting in a sacrifice in their welfare. In a recent talk conversation with the media, Raj Jethwa, chief executive of the Universities and Colleges Employers Association, stated, “This makes the sustainability of institutions that already face stretched finances much, much harder.”
TPS group, which includes 80 universities, are expected to remain members of the group during their transition from government-run polytechnics to private-sector universities under the Further and Higher Education Act 1992.
Furthermore, Vivienne Stern, head of Universities UK, revealed in her recent interview that “At a time when some universities are working extremely hard to stay afloat, this is going to leave some institutions at a competitive disadvantage.
If we look at the data, post-92 universities have 110,000 staff members under its umbrella. They offer education to around 1mn students. However, these universities are also facing severe financial shortages.
University leaders aren’t happy with this decision as, with this latest development, they will be unable to offer “a competitive salary and benefits package,” which will affect the student's support and welfare. This additional increase in the pension cost will collectively cost £125 million a year to universities.
This latest university news hasn’t received a positive response, so we are looking forward to seeing its impact. Meantime, if you are planning to shift to the UK for education, then don’t forget to check out the accommodation options that amber offers. If you want to list a property, you can do so with a seamless experience with amber.