Lancaster University to make staff job cuts due to increased operating costs and declining international student numbers

In what the university described as “a worrying time for our community”, a spokesperson added that it hoped to make the savings through voluntary redundancies, but that it couldn’t rule out compulsory redundancies as a last resort.

Although Lancaster didn’t confirm the number of job cuts, the Guardian believes there have been 70 so far and this may increase to upwards of 400.

Lancaster is not alone in UK universities facing a funding crisis in recent years, with the situation becoming even more grave. Freezes to tuition fee levels, high inflation and a decline in international students, partly due to a ban on bringing relatives, were seen as contributing to “a perfect storm” of funding issues.

A Lancaster University spokesperson said: “Lancaster University has a proud record of excellence in both teaching and research. However, it has not been immune to sector-wide financial pressures including increased operating costs and declining international student numbers.

“We have achieved significant savings on non-payroll and through a voluntary severance scheme this year, but unfortunately our financial projections show that payroll savings of about £30m. are required over the next academic year to ensure our ongoing financial sustainability.

“With the full support of council, the University Executive Board has proposed a plan to ensure our future size and shape is sustainable, while also enabling the university to continue to thrive.

“The proposal is beginning to be shared with our staff, consulting widely with the recognised trade unions who play a welcome part in our processes. We are not planning to reduce payroll costs through the closure of academic departments, and savings have been identified to achieve strategic efficiencies which will be shared across all academic departments and professional services.

“Our preference has always been to achieve these changes through voluntary means wherever possible, however we can’t rule out the possibility of compulsory redundancies as a last resort.

“Lancaster has built a strong reputation for academic excellence and has an impressive track record for student employability. We are in a better financial position than some other universities which has bought us time to work through strategic options, which will ensure that research and the student experience is prioritised and protected.

“We recognise this is a worrying time for our community and the university has support in place for those who have concerns.”

Such has been the concern among a number of the UK’s higher education institutions that an increasing number in the last academic year said they were at very real risk of closure.

Partly in respone to these concerns, Education Secretary Bridget Phillipson announced an increase in tuition fees in England for the first time in eight years – from £9,250 per year, to £9,535 – in order to “bring stability to university finances”.

The tuition fee freeze meant universities were making a loss of £2,500 on each domestic student, according to analysis by the Financial Times – so the sector has become dependent on fees from international students, meaning the fall in these is putting real pressure on institutions.