Sheffield Hallam University: Redundancy fears amid claims of £9m deficit

Sheffield Hallam University is offering all 1,700 academics 'voluntary severance' to plug an alleged £9m hole in its finances - amid fears of compulsory redundancies from January.

The university said it was experiencing 'financial challenges' due to inflation, rising pension costs and a flat undergraduate fee.

But the University and College Union claimed it was due to 'poor handling' of finances including taking loans to pay for £200m of new buildings in Sheffield and London.

It called for the sale of surplus property and land, a cut in construction costs, and a stop on the London campus 'unless a convincing financial case can be presented to staff'.

The severance scheme closes on January 22 and the loss of academics would have an 'immediate impact' on students, it added. 

A UCU Hallam spokesperson urged university management to consider all proposals before axing jobs.

They said: "The timing of the VSS, coming just before the Christmas holidays, has left many of our members worried, anxious, and stressed. 

"Staff are not guaranteed to be accepted should they apply for VSS and the university has not explained what will happen should enough staff not apply."

They added: "Budget issues can be resolved without compulsory redundancies. Management should seriously consider all alternative proposals put forward by affected staff and unions before any job losses are confirmed."

A spokesperson for Sheffield Hallam University said: "Sheffield Hallam is one of the largest and most popular universities in the country, yet like many universities across the sector we are experiencing financial challenges due to a combination of increasing costs associated with inflation, rising pension costs, and a flat undergraduate fee.

"These combined pressures mean that we must take steps to reduce our costs through careful financial management as part of a plan to remain financially stable in the future. One element of this is a voluntary severance scheme for academic staff which will run in January 2024. In line with normal practice, trade unions have been made fully aware of the details of the scheme."