The University of Sunderland has become the latest institution to face opposition to plans to employ academics through a subsidiary firm in a bid to reduce its pension costs.
As of 1 August, the university will employ new academic tutors – a casual position that provides extra support for students – through a existing wholly owned separate company, with these staff ineligible for the Teachers’ Pension Scheme.
The University and College Union (UCU) has warned that this could create a “two-tier” workforce.
Sunderland has claimed that it needs to make savings on its pension contributions, the union said, but employing staff via a subsidiary firm is likely to save it only £36,000 during the next academic year.
Employer TPS contribution costs are set to fall from 28.68 per cent currently to 17.68 per cent from April 2027, but many universities have continued with plans to change employment arrangements regardless.
