University of Sunderland facing loss of up to £26 million as a result of coronavirus crisis as voluntary redundancy scheme set up

In a letter to staff, bosses have estimated that the institution could lose up to £26 million of income in the next academic year – mostly due to a fall in the number of overseas students studying in the UK.

In what has been described as an “unprecedented situation” early steps are being taken in an attempt to protect the University in the long-term.

These plans include measures to reduce the £79 million costs for the year ahead – which accounts for more than 50 percent of the budget.

In a move – which the letter says will have “major consequences” – a voluntary redundancy scheme has been put in place for staff currently employed by the University - with a freeze on filling any non-essential roles until further notice.

Elsewhere most travel has been stopped and printing reduced across the institution, while the educator’s long-term investment plan is reviewed.

Members of the University Executive are to take a voluntary pay cut of 10 percent to their salaries, with vice-chancellor and chief executive Sir David Bell taking a 20 percent cut.

On Monday, May 4, Education Secretary Gavin Williamson announced a £3 billion support package to help bolster the higher education sector.

This includes bringing forward £2.6 billion in forecast tuition fee payments to help address cash flow concerns.

However, in his letter, Sir David hit out at the Government, saying the cash was not “additional money to the sector” and claims ministers have “explicitly refused” to make additional funding available - effectively leaving universities to cope with the impact of the pandemic “on their own”.

The University suspended all face-to-face teaching back in March after the outbreak of Covid-19 and is now reshaping its 2020-21 programmes to be less reliant on campus learning.

It is adopting a more flexible approach to working, with less staff on campus and less buildings in use at any one time.

However if no action is taken bosses have made it clear that the long-term “sustainability” of the institution is at risk.

Sir David commented: "Our focus during the COVID-19 pandemic has been on doing the right thing – protecting and supporting our students and staff, at the same time as assisting the NHS and the wider community in many ways.

“Through careful management, we will be able to finish this academic year in a good position financially. However, next academic year is likely to be very difficult for all universities and we are no exception.

“I always seek to be completely open and transparent with colleagues – now more so than ever. So I wanted to share the risks we face and our plans for ensuring the University’s long-term sustainability built, as it will be, on courses that are career-focused and professions-facing.”

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