Financial update

The University of Essex is announcing a series of measures to ensure our medium-term financial sustainability, and which will allow us to maintain the excellence of both our student experience and our research.

We are facing a shortfall in our budgeted income of approximately £29 million this financial year, and have agreed a series of measures which will allow us to return to generating a cash surplus of 2% of income by July 2027.

The three-year sustainability plan includes continuing to pause recruitment to most vacant posts; a reduction in our capital investment programme; further reductions to operational budgets across the university; and the introduction of a Voluntary Severance Scheme with a view to reducing our staff by around 200.

This is a testing time for the higher education sector, with many other institutions facing similar or worse situations. Thanks to our prudent financial management over the past few years, we have weathered the storm better than many but inaction by government on the higher education funding regime and the impact of earlier political decisions affecting international students, have contributed to the current situation which is placing considerable strain on universities.

Our commitment to excellence in education and research, and providing a transformational student experience, will always remain central to Essex.  We are working to minimise the impact of these changes on our staff and our students.  We are engaging with our community throughout this process, and we will continue to provide regular updates.

We are confident that by taking these steps now, we will place the university on a stronger footing for the future.