University’s redundancy programme cost more than £24m

Martin Shipton

Cardiff University’s controversial redundancy programme in 2025 cost it more than £24m to deliver, according to the institution’s Annual Report and Financial Statements.

The document’s Financial Review states: “During the year, the university made the difficult decision to implement a Voluntary Severance and Voluntary Redundancy Scheme (“Academic Futures” voluntary phase) to help reduce the payroll to a sustainable level. These schemes resulted in an exceptional cost of £24.3m in 2024/25.

“While this one-off expense contributed to the overall deficit, it is a strategic investment in the university’s future financial health. The reduction in staff through voluntary means will generate substantial recurrent savings – £22m per annum once fully implemented.

“These savings will improve our expenditure run-rate in subsequent years, supporting Cardiff’s aim to ‘return the university’s cost base to a position where we can afford to pay for all our activity on a sustainable long-term basis’.

The Financial Review also states: “The university recorded an underlying operating deficit of £33.4m for 2024/25, before exceptional items. This represents a worsening position relative to the previous year’s underlying deficit (£31.2m).

“The total comprehensive result swung to a £34.3m loss from a £177.3m surplus in 2023/24, with last year’s surplus driven by a one-off £162.8m pension credit related to the USS pension scheme and a £36.9m investment gain.

“Like many universities, Cardiff operated in an environment of high inflation, constrained public funding, and international student market volatility. Increased utility and pay costs following Russia’s invasion of Ukraine, have left a lasting impact on our cost base.

“At the same time we have faced a reduction in international student numbers due to stricter visa rules and global economic uncertainty. This confluence of factors made 2024/25 a challenging year financially for Cardiff University, as it was for many of our peers.”

Total income

The report states: “Total income declined by 2.2%, from £649.1m in 2023/24 to £634.7m in 2024/25. The drop was largely attributable to shortfalls in tuition and other operating income. Tuition fee income fell by £10.3m (–3%) to £317.9m.

“After growth in the previous year, we did not meet our 2024/25 fee income target. This was largely due to external factors – notably a slowdown in international student recruitment amid new UK visa restrictions and broader global economic uncertainty, which tempered overseas enrolments.

“Home student fee income remained capped (the Welsh Government raised the tuition cap to £9,250 to match England, effective 2024/25).”

Vice Chancellor Professor Wendy Larner’s total remuneration amounted to £364k, comprising a salary of £294k, benefits-in-kind of £28k and a pension death-in-service enhanced opt-out contribution of £43k.

The benefits-in-kind were made up of £2k private medical insurance, £23k permanent accommodation [a free house] and £3k of unspecified services supplied.

A note to the annual accounts states: “The remuneration of the current Vice Chancellor is set through the Senior Salary Review Process by the Remuneration Committee, which comprises independent lay members of Council.

“The Vice Chancellor’s base salary is also reviewed in line with national pay awards for the Higher Education sector. The Vice-Chancellor’s reported salary in 2024 reflects 11 months (aligned to her appointment date) whilst that for 2025 reflects a full 12 months in post.

“The Vice Chancellor received the same pay award as other University staff. The Chair of Council presents performance assessments to the Remuneration Committee for inclusion in the Senior Salary Review process.

“The Remuneration Committee makes the final decision on the rewards given for comparable performance assessments.

“The Vice Chancellor’s salary, in line with the Senior Salary Review, is also assessed against equity and market concerns. The Vice Chancellor’s performance is reviewed according to a number of factors including, but not limited to the Vice Chancellor’s leadership, management, and academic experience within the higher education sector; the breadth of leadership and financial responsibilities for the university; the performance of the university according to the strategy and agreed metrics.

“The current Vice Chancellor’s full-time equivalent basic salary is 6.5 times (2024:6.7) the median pay of all staff, where the median pay is calculated on a full-time equivalent basis for the salaries and wages paid by the Institution.

“The current Vice Chancellor’s full-time equivalent total remuneration is 7.2 times (2024:7.4) times the median total remuneration of all staff, where the median total remuneration is calculated on a full-time equivalent basis for the total remuneration paid by the Institution.”

Support staff

A Cardiff University staff member who did not wish to be identified said: “The pain goes on for Cardiff University. Last year it was academics, this year it’s the dedicated support staff who are facing cuts, with some proposals still to materialise. Morale remains low. Trust in senior management is lower than ever.

“Staff understand the impact of reductions in international student numbers and the political failure to set a sustainable course for higher education, but the approach taken by senior management over the last 12 months has alienated staff completely.

“The centralisation strategy has proved a disaster, with serious timetabling issues last autumn likely to be worsened in future with cuts to support staff.

“The university has done worse on international recruitment than many other institutions, due to failures at the centre for which no-one seems accountable.”