Universities face billions of pounds in lost income due to
the Covid-19 crisis that will leave some struggling to survive
warns a report released today (Monday).
Responding to the analysis, from researchers at the
Institute for Fiscal Studies funded by the Nuffield Foundation,
the University and College Union (UCU) said the government had to
step in now with a comprehensive support package to protect
universities.
The report warns that universities are unlikely to be able
to claw back a large portion of losses through cost savings
unless they make significant numbers of staff redundant. It says
that while institutions with a larger proportion of temporary
staff may be able to make greater savings, this may impact on
teaching quality and risk reputational damage.
UCU said government support was vital to protect jobs,
preserve the UK’s academic capacity and defend the quality of
teaching and research. The union’s own research released at the
start of the pandemic warned of a £2.5bn
loss in income for universities from tuition fees and teaching
grants, which would result in a £6bn hit for the
economy.
UCU general secretary Jo Grady said: ‘This report is more
bad news for higher education. It’s been months
since our own research laid
bare the likely devastating impact of the pandemic on
universities and the Office for Budget Responsibility singled the
sector out as one most likely to suffer. The government has to
now step in and guarantee lost funding for universities so they
can weather this crisis and lead our recovery on the other
side.
‘This report warns of the damage redundancies can do to
teaching quality and universities’ reputations. Universities are
already seeking to sack staff, with casual staff and those from
BAME backgrounds suffering the most. We need a comprehensive
support package that protects jobs, preserves
our academic capacity and guarantees all
universities’ survival.’
More on UCU’s Fund The Future campaign can be found
here.
A poll
of prospective students released last month
revealed that almost a quarter (23%) feared that the
university they wanted to study at this year could go bust
because of the Covid-19 crisis. Half (49%) feared that damage
caused by funding cuts because of the pandemic would negatively
impact on their education and over two-thirds (71%) backed a
delay to the start of term.
In April, the Office for Budget Responsibility
said education
would be the sector hardest hit by the coronavirus crisis, with
the impact likely to be felt most by
universities.
