BUFDG Digest 14 January

BUFDG  

BUFDG is compiling a dataset of financial metrics for the majority of our member universities, based on published accounts. The Financial Information and Trends project captures 30 core data points and calculates 20 KPIs, providing timely, accurate sector-level and provider-level insights to support analysis and decision-making. 2024/25 data, alongside prior year comparison, is expected to be published on Monday 19 January. 

The final round table discussion to gather input for BUFDG’s response to the Department of Education’s International Student Levy technical consultation will take place on 21 January, 2-3pm. This is an important opportunity to share your views ahead of the deadline on 18 February. Register your place here.  

The next Strategic Business Partnering course takes place on the 10 and 11 February, suitable for those with experience of operating in a Finance Partnering environment seeking to operate more strategically, further develop the effectiveness and impact of the Finance function and your role, and gain increased organisational influence. 

SECTOR 

The Chancellor has asked the Office for Budget Responsibility to prepare an economic and fiscal forecast for publication on 3 March, ready for the ‘interim update’ on the public finances under the Spring Forecast.  

The Department for Education (DfE) published more detail on the deal that will see the UK rejoin the Erasmus+ programme, which had just been announced at the time of the last Digest. Costs will be funded above the department’s spending review settlement. The deal, which will only cover the final year of the current programme, was welcomed by sector representatives such as Universities UK, but a joint letter published by The European University Association (EUA) and partners from across the European higher education sector has raised concerns about the future budget for the 2028 to 2034 programme and calls upon the European Commission and the European Parliament to increase the allocation. The Guardian has a useful explainer on the scheme, and on Wonkhe Jim Dickinson explores gaps in policy and strategy that may take the shine off.  

The Migration Advisory Committee has published its review of salary requirements for UK work visas, fulfilling a commission from former Home Secretary Yvette Cooper in summer 2025. The committee recommends setting the new entrant salary threshold at £33,400, replacing current discounts for young people, graduates, and PhD holders. A letter to the current Home Secretary Shabana Mahmood recommends abolishing the PhD discount due to a lack of evidence that PhD holders earn less than the average worker, and the removal of a separate postdoctoral discount if the general threshold recommendation is adopted.

BILLS BILLS BILLS 

After much to and fro between the House of Lords and House of Commons the Employment Rights Bill has now been passed. The Bill applies to England, Scotland, and Wales, with separate legislation planned for Northern Ireland. We've published an overview of the main changes and how they may affect the higher education sector, though further consultations on how some of these will work in practice are expected.  

A second reading of the UK-wide National Insurance (Employer Pension Contributions) Bill was held on 17 December following a House of Commons research briefing. The Bill will introduce charges on employer pension contributions made through salary sacrifice schemes above £2,000 a year from April 2029.  

The Medical Training (Prioritisation) Bill , which will give UK and Irish medical graduates priority for NHS foundation and specialist training places, was introduced to the House of Commons and given its First Reading on 13 January. Wonkhe has published an explainer.   

Amendments to the Tertiary Education and Training (Funding and Governance) (Scotland) Bill have been published, and include a requirement for Scottish Ministers to prepare a national funding strategy for tertiary education, skills and apprenticeships and the commission of an independent report on the financial sustainability of fundable higher education. Once MSPs have decided on the amendments, they debate whether to pass the Bill. 

SCOTLAND  

The Scottish Budget has been published, setting out the Scottish Government's proposed spending and tax plans for 2026-27 including an uplift in combined resource and capital funding for higher education. This response from Universities Scotland welcomes the above inflation rise in the teaching settlement and increased capital budget, but highlights that the budget falls short of easing long-term financial pressures on Scottish universities.  

Ahead of the budget, Edinburgh University's principal told the BBC that the current funding model for Scottish higher education is unsustainable and that the current model could only continue with significantly more Scottish government investment per student, a change in the number of places that are being funded, or the only alternative would be that some students make a contribution but did not advocate the introduction of tuition fees.  

A new joint Framework for the Sustainability and Success of Scotland’s Universities was announced by Scottish Government and Universities Scotland, outlining plans to explore options for ensuring a sustainable and successful future for Scotland’s 19 higher education institutions to 2045. A steering group will develop the framework in three phases (covering the funding system, the future purpose of Scotland’s universities, efficiency and transformation, and recommendations), with a final report due in the autumn and is expected to delivery its final report to the next Scottish Government and Parliament in autumn 2026, following planned elections in Mary 2026.  

The SFC has launched the University Transformation Framework (UTF) to enabling transformation and innovation in the sector, and contribute to the delivery of an institution’s strategy and long-term stability. The announcement comes amid ongoing work between the SFC, Scottish H E institutions, Universities Scotland, Scottish Government officials and Ministers to consider how best to support the sector in an increasingly challenging financial landscape. Applications should be submitted by 14 February and the SFC will host virtual ‘drop-in sessions’ in January, where universities can ask questions and discuss their applications (details are still to be announced at time of writing). 

Times Higher Education (£) reports that Scottish universities will be required to take action on zero-hours contracts and pay gaps after the Scottish government extended its “fair work” policies to cover the sector. 

A think-tank report warns a “radical rethink” is required for Scotland’s universities and colleges, calling for a complete reimagining of their scale, funding models, and societal role. The paper, titled “Where next for Scottish Universities and Colleges?”, highlights that current funding, particularly for free undergraduate tuition, is unsustainable, and urges a national conversation on reshaping the sector.  

WALES 

Medr’s 2024–25 annual report and accounts were published ahead of the Children, Young People, and Education Committee On 15 January. The Committee also released a letter from Education Secretary addressing questions on the 2026–27 draft budget, including pressures facing the Welsh higher education sector. 

QAA Cymru has responded to the second phase of Medr’s consultation on the new regulatory framework for Wales, covering conditions of registration and funding. QAA Cymru also published a new report, commissioned by Medr, exploring effective approaches to student transitions into and within higher education, drawing on good practice across Wales, Scotland, and England. Key findings stress the importance of belonging, early academic support, clear information, structured induction, and peer mentoring, alongside a holistic approach that integrates academic, social, and emotional support throughout the student journey. 

ENGLAND  

The OfS has referred several institutions to National Trading Standards after identifying potentially unfair clauses in student contracts, particularly those limiting compensation or liability during staff industrial action. This intervention follows its April 2025 guidance urging institutions to ensure contract terms comply with consumer protection law, with the aim of safeguarding students’ legal rights and fair treatment during disruptions.  

Skills minister Jacqui Smith has set out “the government’s view on what is likely to happen should an English higher education (H E) provider enter compulsory liquidation” following the Education Committee’s oral evidence session on 25 November. 

NORTHERN IRELAND

The Department of Finance published the draft Budget 2026-2029/30, including proposed departmental spending allocations over the next three years and capital investment for the next four years. A consultation inviting views is open until 6 March.  

TAX AND PAYROLL  

The dates for the 2026 BUFDG Tax Conference have been confirmed; it will take place online from Tuesday 9 to Thursday 11 June. Planning is underway, and a discussion board has been set up to capture priorities for sessions. As usual, members will be invited to take advantage of the ‘early bird’ discount in February, prior to confirmation of the full schedule.   

Many will have been reaching for umbrellas these past few weeks, but are you ready for the new umbrella company rules that will be implemented in April 2026? Engaging directly with an umbrella company makes you jointly liable for PAYE/NIC on individuals provided, and complex rules can catch arrangements that don’t look like umbrellas. Universities must carry out thorough due diligence to ensure all income is processed through PAYE/NIC by a compliant organisation. Join this round table on 22 January to find out more.  

There is an impressive list of Tax and Payroll related events scheduled between January and March. A full list is availalbe in the latest edition of TaxHE, which will now be published on the second Thursday of every month, along with all the latest tax updates.  

PROCUREMENT  

The Responsible Procurement Group is pleased to present the Commodity Mapping Tool, which can be used to help identify potential responsible procurement risks and opportunities. The tool offers an indicative assessment of risks at ProcHE level 2 aligned to the Sustain Supply Chain Code of Conduct, and covers four thematic areas and the associated risks and opportunities; Environmental Sustainability, Social Compliance, Working Environment and Terms ,and Ethical Compliance and Economic Development. A launch webinar takes place tomorrow, 15 January from 10am, register your place here. 

The Cabinet Office has recently updated the Anti-slavery Risk Tiering Tool (ARTT), which may be of interest to members who apply the approach set out in PPN 009 Tackling modern slavery in government supply chains. While optional, the tool is a practical way to support compliance with PPN 009 and helps embed modern slavery risk management into everyday procurement practices. 

A reminder that Contracting Authorities can find out more about Section 70 - Linking Payments to Contracts on the BUFDG website, and that the Procurement Value Survey (PVS) is open for submissions from members in England, Wales and Northern Ireland – find out more here.  

ENERGY 

The Responsible Procurement Group is pleased to present a TEC Market Update: Energy Costs Explained on Wednesday 28 January 11am-12pm. TEC’s Head of Trading and Portfolio Management will cover the latest developments in the wholesale market, winter weather and impacts on gas storage, changes to non-commodity cost components and their respective impacts,  how recent geopolitical developments have affected markets, and the key areas to look out for throughout 2026.   

SUSTAINABILITY 

Energy Systems Catapult’s Public Sector Decarbonisation Guidance (PSDG) programme, funded by the Department for Energy Security and Net Zero, has one remaining slot to support a university. The participating university would receive impact and assurance support to clarify emissions reductions and wider benefits, early pathway shaping for practical, scalable estate strategies, direct access to Catapult experts with proven PSDG tools and independent challenge to strengthen decarbonisation plans, plus funding insight, signposting, and advice for robust financial cases. The support is provided at no cost, and would inform a case study highlighting practical, replicable approaches that could benefit the wider sector. For more detailed information on the criteria and application process email Joni ASAP, the deadline is 19 January.  

The Scottish Public Sector Energy Efficiency Loan Scheme is open for applications, offering zero-interest loans to facilitate energy efficiency improvement projects that result in financial and carbon savings and contribute towards achieving their net-zero aspirations. You can find the full details and application documents on the Salix website.

COUNTER FRAUD  

The 2025 BUFDG Fraud Survey report is now available. Conducted by the Counter Fraud Working Group, the survey offers fresh insights into how UK universities are tackling fraud risk. Key highlights from the report include growing awareness, an evolving risk landscape (including cyber and IT-enabled fraud) and an international focus. With responses from 108 institutions, around 60% of BUFDG members, the survey provides a valuable snapshot of sector-wide preparedness and emerging challenges. Download the full report from the BUFDG website here to explore the detailed findings. 

FINANCIAL REPORTING  

Thursday 1 January marked the effective from date for the new FEHE SORP 2026, meaning it applies to financial periods beginning on that day or any date after, and adoption for the 2026/27 financial year for most. Reflecting changes to UK accounting standards introduced by the FRC in 2024, the updated SORP provides a refreshed financial reporting framework designed to support all institutions and stakeholders across the UK’s further and higher education sectors.  
 
To find out more about the new SORP, along with a toolbox of guides, webinars and resources to help practitioners, visit BUFDG's dedicated SORP knowledge hub.  

Those preparing for the changes in any role can join the next SORP Implementation Forum discussion on 20 January 2026. 

RESEARCH AND INNOVATION   

Our last Digest just missed December’s major announcement regarding UKRI budget allocations, which provided more detail on the "bucket" approach announced the month before. The key shift is away from individual research council allocations to a new “single mission” model that aligns funding with the Government’s strategic priorities and prioritises cross-disciplinary programmes. Wonkhe has explored what “Bucketing down” might mean.  

Innovate UK has confirmed that it is now enforcing the Grant Offer Letter (GOL) Payment of Grant terms, meaning that after the relevant deadline the claim periods will be closed, and no further grant can be claimed. Innovate UK issues reminder emails, so it is important for those managing grants through their system to make sure your finance contact details are up to date to avoid missing communications.  

Results from the first wave of Research England’s survey of financial sustainability in English HEIs were published in December, showing that 85.1% of institutions reported an operating deficit, broke even, or had a reduced operating surplus in the year of the survey. However, the origins of financial weakness differed markedly between types of university. The second wave of the survey is currently underway, again targeting Finance Directors/CFOs, and expected to conclude in March. Members will be contacted by OMB Research Ltd, who are conducting the survey for Research England and the Innovation and Research Caucus. 

MISCELLANEOUS  

From 1 January, The Code became UUK/GuildHE Accommodation Code of Practice (ACOP), and is the latest organisation to operate under the Professional HE Services Ltd (PHES) ‘umbrella’. PHES is a shared service that provides the legal framework for different HE sector organisations to be run effectively, share staff and operational resources, and has nine organisational members, including BUFDG. 

JOB(S) OF THE FORTNIGHT 

If you read about the effective date of the new SORP with excitement the opportunity to become the University of Glasgow’s new Financial Reporting Manager may be of interest. The successful candidate will lead on the preparation of accurate, timely and compliant financial statements and additional external reporting requirements and ensures adherence to all Higher Education specific financial reporting requirements, as well as ensure the integrity of financial information, support strategic decision-making, and maintain strong internal controls. Apply by 20 January.  

Queen Mary University of London is seeking a Tax Manager with relevant technical qualifications to be responsible for the management of the indirect and direct (non-payroll) tax affairs within QMUL and the QMUL group of companies. The successful candidate will be the professional lead for Tax matters in the university providing direct advice to internal stakeholders or procuring this from third parties for more complex scenarios, and have experience of devising tax strategies to maximise the recovery of VAT and other taxes in particular partial exemption models. Closes 25 January.  

Elsewhere, Higher Education charity TASO (Transforming Access and Student Outcomes in Higher Education) is seeking volunteers to join its Finance and Risk Committee to help TASO’s financial sustainability, compliance, and risk management. TASO is interested in hearing from individuals who can bring experience, insight, and constructive challenge to its financial and risk oversight. The time commitment is expected to be approximately half a day per month, and the Committee meets quarterly, typically online, with papers circulated in advance. More details and application information can be found here, the deadline is 9 February.  

As always, there are more vacancies listed on the BUFDG jobs page.