Last updated: 19 May 2026
Financial challenges for universities
Universities across the country are facing financial challenges. These are largely outside of our control and are due to:
- increasing costs because of inflation
- rising pension and energy costs
- an undergraduate student fee that has remained the same for a decade
- Government decisions meaning fewer international students are applying to study in the UK
Our cost-saving measures
Over the last two years the University has been able to make £60m of savings without the need for any compulsory redundancies, through a combination of:
- voluntary severance, where a staff member chooses to leave the University
- restructuring leadership and management roles
- vacancy management, where we don’t replace a role when someone leaves
- other savings, such as on buildings and contract management
Upcoming cost-saving proposals
In 2026/27, we need to save a further £26.6m. This is the final year of a three-year strategic reset designed to ensure we are financially stable in the long term.
We are currently working through our proposals with the University and College Union (UCU) and other recognised trade unions.
Our aim would be to implement the proposed changes by September 2026:
- Proposed changes to teaching staff pensions
Most teaching staff would move from the teachers Pensions Scheme (TPS) to the Local Government Pension Scheme (LGPS), which is already used by most professional services staff.
The pensions are similar in terms of benefits, but national rules make the TPS much more expensive for the University. Making this change would save around £6 million a year.
- Proposed change to employment for teaching staff
To legally enable the change of pensions, most teaching staff would be employed by a subsidiary company instead of Hallam. This company (SHUSL) is fully owned by Sheffield Hallam University.
Staff would keep the same terms and conditions and employment rights, except for the pension.
- Proposed new academic staffing model
We would change our staffing mix so there are fewer senior lecturers and more academic tutors.
This would help manage future staff costs and allow more time with students.
- Proposal to close some campus cafes
We currently spend £0.5m every year subsidising Hallam cafes. As fewer people are using them, we are looking to close some cafes.
Five cafes would stay open and four would close with these spaces repurposed for student use.
- Proposal to close Collegiate Nursery
There are fewer children using Collegiate Nursery, with only a small number from Hallam students (five) and staff (eight).
It has been running at a loss for several years, which we can’t afford.
- Voluntary severance scheme
A voluntary severance scheme is now open for staff. We hope this will minimise the need for compulsory redundancies.
What this means for you
Your studies will not be disrupted and you will continue to benefit from our award-winning teaching and support. Any changes will not affect your ability to continue with your course or access support:
Changes to the academic staffing model would mean teaching staff will have more student-facing time, and there is flexibility for online, evening and summer teaching.
- Cafes across both campuses will still be open offering good value food. Closed café spaces will evolve into spaces where you can bring your own food. We will work with the Students’ Union on how these spaces are designed.
- Despite the challenges, Hallam remains one of the UK’s largest and most diverse universities with a community of over 31,000 students, 4,000 staff and 345,000 alumni around the globe.
Accessing support
We understand that some of these changes may be worrying. Please reach out for support and guidance:
