Update on National Pay Award, Real Living Wage, and Academic Promotions and Professorial Review.
Dear Colleague,
I am writing today to update you on recent financial decisions made by the University. As many of you are aware, last June we agreed an operating deficit with Council of £15m for the financial year of 2023/24, with the aim of reaching zero deficit in just over two years' time (end of 2025/26 financial year).
This means we need to decrease our deficit position year on year through general income and expenditure management.
Putting UEA on a sound financial footing is very important and will allow us to invest in people, research, teaching, and infrastructure.
Our budget outturn and forecast for the current (2023/24) and next (2024/25) financial year are presently under significant pressure to balance income and expenditure.
UEA has already implemented a range of cost-saving measures to address these pressures, including close management of expenditure across the University and only recruiting to critical roles.
Regrettably, due to lower-than-expected forecast for student recruitment and research income for next year, we are taking additional steps to manage the deficit, which impact several areas of the University including staff discretionary expenditure.
This will impact plans to match the Real Living Wage, Academic Promotions and Professorial Review. I believe these decisions are essential to address UEA’s long term deficit position. We are committed to reviewing these measures should our financial position materially improve.
National Pay Award Due to our financial position, the 2023/24 National Pay Award (annual cost of living increase) was deferred by 11 months. The first part of the National Pay Award was brought forward for our lower paid staff from January 2024 to August 2023, with the remainder of applicable staff receiving the first part of the deferred pay award in December 2023.
The second part of the 2023/24 award for all applicable staff will be paid in July 2024 as planned.
Negotiations for the 2024/25 National Pay Award are underway with Universities and Colleges Employers Association (UCEA) and sector Trade Unions at a national level and we will continue to keep you updated on progress. Real Living Wage Last year, the University reluctantly had to withdraw from our commitment to pay the Real Living Wage (RLW) but agreed to ‘match’ the existing rate for the period of January – July 2024.
The new rate for the RLW was announced in October 2023 and following careful consideration, the decision has been made not to match the RLW from August 2024, in line with other cost saving measures. We are committed to reviewing this difficult decision in the next financial year.
Academic Promotions and Professorial Review The University has already started the Academic Promotions process, including Professorial Review, but in light of the continuing financial challenges, we have made the difficult decision to defer any additional salary payment for successful promotion and professorial review cases until April 2025. Colleagues who are successful in the latest Academic Promotions process will still be able to use their new academic title in the interim.
Salary increases through the Professorial Review process will be considered only in exceptional cases, requiring the full support from the Faculty Pro-Vice-Chancellor (PVC). Payment of the second part of the 2023/24 National Pay Award will be paid to all applicable staff in July 2024 as planned
If you have further questions, please contact your Head of School in the first instance.
Keeping you updated I acknowledge that these are tough decisions, and it will be disappointing news for some colleagues, but it is vital that we balance our finances, do not increase our deficit further and stay within the limits of our banking covenants.
The University has consulted with campus trade unions, and they have asked that it is made clear that they do not support the implementation of these measures. We will continue to discuss these matters with our campus trade unions.
We are committed to reviewing these measures as our financial position develops and will continue to keep you updated on any developments.
Best wishes,
David
David Maguire Vice-Chancellor and President
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