University financial position update

Last updated, 28.1.25

Context 

• As we have previously communicated with our staff, UK higher education is facing an extremely difficult environment, due to factors including long-term underfunding of home undergraduate students and research, high inflation, and ongoing volatility in international student recruitment.
• Durham University remains a world-leading university that attracts and retains the best researchers, teachers, students, and professional services staff. 
• In November 2024, the University announced in-year cost-saving measures, including reducing energy use, phasing planned capital expenditure, managing stringently staff vacancies, reducing hospitality expenditure, restricting non-essential travel, and reducing the use of external consultants. A Voluntary Severance (VS) scheme was also offered during 2024. 
• Since then, the University has for the first time reported an underlying operational deficit. Although this was planned and agreed with the governing University Council, the University must return to surplus.  

New measures announced  

• In light of the context above, the University has today announced its intention to reduce staff costs by £10m in professional staff costs in the academic year 2024/25.
• The University proposes to seek a further £10m reduction in staff cost (£5m in professional staff costs and £5m in academic staff costs) in the academic year 2025/26. 
• In the current academic year, this may equate to a figure of around 200 professional services staff posts.
• Strenuous efforts will be made to secure these savings through voluntary means, through a generous Voluntary Severance package.   
• If these savings cannot be secured through voluntary means, compulsory measures cannot be ruled out.   
• The University will prioritise excellent education, research, and frontline student support, as well as its capability for ongoing income generation.   
• These proposals have been shared with our recognised campus trade unions, and formal consultation has begun. 
• A Voluntary Severance scheme for professional services staff will open on Monday 17 February. It will be open to all professional services staff.   
• A Voluntary Severance scheme for academic staff will also be open.   
• The University has communicated this update to staff and will provide further details in early February.   

Professor Karen O’Brien, Vice-Chancellor of Durham University, said: “Durham University remains a world-leading university, and our achievements in research and education are made possible by the talent, work, and dedication of our staff.  

“However, we cannot fulfil our aims of remaining a world-class centre of research and education without a firmly established and sustainable financial base.  

“We appreciate today’s announcement will be concerning to staff. We are committed to working with our recognised trade unions and our staff in an open, transparent, and timely way to achieve the savings required.”