Scottish post-92s get extra cash to cover pensions costs

Additional funding to help Scottish universities cover mounting pension costs has been described as “a relief” by union leaders, with Holyrood’s generous approach contrasting with intransigence at Westminster.

The Scottish Funding Council (SFC) has announced that it will provide an additional £5.8 million to Scottish universities to cover additional costs for those with staff on the Scottish Teachers’ Pension Scheme, after employer contributions rose from 23 per cent of salary to 26 per cent in April 2024. The cash will also cover the costs of institutions with staff on NHS pensions, for which contributions have increased from 20.9 per cent to 22.5 per cent.

Post-92 institutions have been most heavily exposed, and three institutions – Edinburgh Napier University, Glasgow Caledonian University and the University of the West of Scotland – will each receive more than £1 million each.

Mary Senior, the Scotland official at the University and College Union, said that the SFC support was “welcome and much needed in a sector which is under financial strain”.

“It is a relief that this additional funding for pensions has at last been provided. We now need to ensure this funding continues for the coming financial year, and [that] the wider underfunding challenges in the sector are addressed.”

The announcement comes amid mounting concern about Scottish university finances, with the University of Edinburgh this week warning staff that “nothing is off the table” and that it may need to close schools and degree programmes as it seeks to make savings.

Staff at the University of Dundee have voted to strike over a funding crisis at the institution, while UWS is among a growing number of Scottish providers to have reported deficits for 2023-24.

It also comes as English post-92s have complained that contribution rates to the Teachers’ Pension Scheme of 28.68 per cent are crippling their finances. Growing numbers of providers are opting to employ staff via subsidiary firms to avoid paying TPS contributions.

While the Department for Education has given state schools funding to cover TPS cost increases, and has allowed independent schools to stop offering TPS pensions to new staff, no such support has been forthcoming for the university sector.

Jo Grady, UCU’s general secretary, said: “This is a huge win for our Scottish members, their tireless campaigning has helped save the pensions of thousands of university academics. Labour now needs to look to Scotland and bring in additional funding to protect staff pensions in post-92 universities across the rest of the United Kingdom.”

juliette.rowsell@timeshighereducation.com