Increased financial pressure from rising pension costs could potentially push some of the country’s universities “to the brink”, it has been claimed. iNews reports.
According to latest figures, higher education institutions will need to pay an extra £222 million over the next two years to meet increased employer contributions to the Teachers’ Pension Scheme.
The news emerged in responses from education minister Nick Gibb to written questions submitted by Labour MP and shadow education secretary Angela Rayner.
Mr Gibb said the increase – which follows a government review of public sector pensions schemes – would cost affected universities £80 million in 2019-20 and £142 million in 2020-21.
“Universities across the country are facing a growing crisis in their finances and now ministers have revealed a new cost pressure that will leave them hundreds of millions of pounds worse off,” Ms Rayner said.
In his written replies, Mr Gibb said the Department for Education estimated an additional £1.1 billion would need to be put into the Teachers’ Pension Scheme for 2019-20.
The minister wrote this amount was needed to “ensure teachers’ pensions remain generous and attractive to the profession”. He added it was the Government’s intention to provide funding for independent special schools to help them meet the increased costs.
Read the full article Universities ‘could be pushed to brink’ by financial pressure from rising pension costs
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