Universities face cash squeeze from employer NI rise

The tuition fee rise may have been a shock to students, but universities may not be better off because of employer’s national insurance and minimum wage increases

Although the 3.1% increase in tuition fees from 2025 is set to cost each student £285 extra per year, the recent increase in employer national insurance contributions and 6.7% rise in minimum wage could still see universities ‘struggling financially’, said Tornike Asatiani, CEO of Edumentors.

Asatiani said: ‘Disparities in pay are already a contentious issue at top UK universities, with lecturers frequently striking to demand fairer wages. This new increase in National Insurance contributions could exacerbate the situation, as universities may feel even less able to offer the pay rises lecturers are asking for.

‘With more funds directed towards these contributions, there will be less available in the institution’s budget overall. While there is no specific data on exactly how much this increase will affect overall staffing costs, it’s evident that universities already struggling financially will face tough budgetary decisions to remain afloat.’

While

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