This update extends earlier analysis by Sheffield Hallam University (SHU) University and College Union (UCU). That report highlighted governance failures at SHU; expenditure outstripping income and inflation for a decade, but management still proceeding with a massive loan for new buildings in 2022. When Higher Education (HE) then faced challenges, SHU was woefully ill-prepared and responded with swingeing job cuts – 1000 in 24 months – impacting workload, staff morale, student choice and support. Rather than acknowledge these governance failures, management have pointed to factors outside their control and/or claimed that SHU spends too much on staff.
SHU management are proposing another £27m of cuts, which we believe will lock us into an irreversible cycle of decline (cuts lead to a deteriorating quality, falling league table position, fewer enrolments, even more cuts). This will have significant economic impacts on Sheffield. SHU is also proposing to transfer the majority of teaching staff to a subsidiary to avoid pensions obligations, and to cut more experienced staff.
This update allows us to challenge the employer’s narrative, noting that:
- SHU is in a poor financial situation because of past governance failures, but current decision making seriously risks compounding the problems.
- SHU did not significantly increase income in the last decade, but rather lost market share, especially from 2018/19 onwards.
- Arguably SHU management misread the political situation and believed the relaxation of international study visas in 2021/22 would be more than temporary.
- Overall expenditure has not been out of line with the sector, but capital expenditure and finance costs, which skyrocketed from 2021/22, have been.
- SHU had the second most expensive restructure in the post-92 sector in the last decade, perversely spending huge sums of money in an attempt to save money.
- As a result of the cuts to date, our expenditure per student has dropped to within the lowest 25% of post-92 institutions (up to 2023/24). It does not appear that SHU has a greater proportion of experienced senior lecturing staff than other post-92s, but may end up with a much smaller one.
- SHU was amongst the worst 25% post-92s for staff-student ratios (class sizes), even before the cuts of summer 2025 and those planned for 2026.
- Combined with a tanking league table position this risks a cycle of decline that SHU management have not factored into their financial plans.
- Despite this, the number of staff earning over £100k has risen markedly and now places SHU in the top 25% of post-92s in absolute terms.