Government Allocates £5.83m to Support University Pension Schemes

Universities Receive £5.83m to Cover Increased Pension Contributions

The Scottish Funding Council announced additional funding for universities to support changes in the Scottish Teachers’ Pension Scheme (STPS) and NHS Pension Scheme employer contribution rates for April 2024 to March 2025. The STPS employer pension costs are set to rise from 23% to 26% from April 2024, while the NHS Pension Scheme employer contribution rate will increase from 20.9% to 22.5% starting April 1, 2024.

The Scottish government has agreed to provide £5.83 million in additional funding for the university sector, with payments scheduled for February 2025. The University and College Union (UCU) welcomed the announcement, having previously argued that it was unjust for employers to bear these additional costs resulting from changes by the UK Treasury. The UCU appreciated that the additional costs impacted modern, post-92 institutions the most, with the University of the West of Scotland, Edinburgh Napier University, and Glasgow Caledonian University each receiving over £1 million in new funding.

UCU Scotland official Mary Senior remarked that the £5.8 million in targeted funding was much needed in a financially strained sector. Senior stated that the UCU had repeatedly called on the Scottish government to cover these additional employer pension costs for post-92 universities and expressed relief that the funding had been provided. She emphasized the need for continued funding in the coming financial year and addressed broader under-funding challenges in the sector.

The general secretary Jo Grady praised the announcement as a significant victory for Scottish members, attributing the success to their persistent campaigning. Grady urged Labour to look to Scotland and secure additional funding to protect staff pensions in post-92 universities across the rest of the United Kingdom. This funding commitment underscores the critical need for sustained support to address financial challenges and ensure the future stability of the university sector.

Editor's Note:

The recent announcement by the Scottish Funding Council to provide additional funding for universities to cover increased employer pension costs is a significant step toward addressing the financial challenges faced by the education sector. This funding will alleviate the burden on universities and also ensure that institutions can continue to support their staff and uphold their commitments to providing quality education. The government needs to recognize and respond to the financial needs of educational institutions, particularly in a time of economic uncertainty. As it moves forward, continued support and strategic funding are crucial to maintaining the stability and growth of the university sector. 

Skoobuzz underlines that the success of this initiative highlights the importance of collaboration between educational bodies and government agencies.