Month: March 2021

By Professor Judith Squires, Deputy Vice-Chancellor and Provost

This week we published our 2021 Gender Pay Gap and Ethnicity Pay Gap Reports. I’d like to highlight some of our progress, and to outline a few of the things that we are doing to build on our commitment to foster a diverse and inclusive community and eliminate the gender and ethnicity pay gaps.

Gender Pay Gap Report

We have seen a modest reduction in our mean organisational gender pay gap for the third year in a row to 18.3% in men’s favour. While this progress is welcome, we remain committed to reducing this further through a range of targeted actions including the continuation of the Women’s Mentoring Network to support academic and Professional Services communities, and the Academic Promotions Framework to reward and recognise the full range of contributions and achievements.

This year’s cohort of 42 new professors has increased the proportion of our female professors to 30.4%. Having exceeded our mid-term University Strategy target of 28% female professors last year by 1%, I’m pleased to report that modelling of our population data suggests we are on track to meet our target of 33% by 2023.

As a result of numerous local and central initiatives our female professor population has increased by 10.5% over five years. This reflects a much longer journey, undertaken by committed colleagues across the institution, to tackle inequalities in the academic career pipeline and to change our cultures and structures to better support women at all stages of their career.

For example, our Women’s Mentoring Network is currently supporting 78 new mid-career mentees from both academic and Professional Services communities; and the Female Leaders Initiative (FLi) supported 30 more women from across all career levels in both academic and Professional Services teams. I’d like to extend my thanks to everyone who has participated in these schemes: I’m delighted that engagement in these has been so strong. I’m confident that they will make a real difference to our institutional culture over time, and support the career development of our female colleagues in the immediate term.

Ethnicity Pay Gap Report

In line with our institutional commitment to anti-racism and as part of our wider commitment to improve the representation of Black, Asian and Minority Ethnic (BAME) people across our workforce, we also monitor our ethnicity pay gap – that is, the difference in average pay between White and BAME staff.

In our second year of reporting this, ahead of it becoming a legal obligation, our ethnicity pay gaps have reduced to 2.9% median and 7.2% mean in favour of staff who disclose as White, compared to 5.7% median and 8.6% mean in 2019. We are also exploring the ‘intersectional’ pay gap between gender and ethnicity for the first time, and with future years’ data we will be able to improve our understanding of how this intersection contributes to gender inequality at our University and to develop targeted action.

Within the professoriate, and based on a 93.8% ethnicity disclosure rate, 8% disclose as being from a Black, Asian and Minority Ethnic background, and 92% identify as White. By gender these figures are 2.4% female and BAME, 5.6% male and BAME, 28.0% female and White, and 64.0% male and White. This confirms that we still have a lot of work to do to improve the BAME representation of staff at a senior level. In the coming year we will explore an appropriate target for BAME population in the professoriate, to complement our female population target in a review of our Strategic Performance Indicators. We look forward to making greater progress in this area.

Elsewhere at Bristol, we have been tackling BAME under-representation by revising our approach to apprenticeships. This includes developing a pipeline of talent from groups traditionally under-represented in professions such as finance, IT and human resources. Currently 75% of trainees across Professional Services are from a Black, Asian or Minority Ethnic background.

The under-representation of Black, Asian and minority ethnic women at senior levels is an issue across the HE sector. To help address this we have launched the Elevate programme in 2021 – the first pilot of its kind – with 30 participants (eight academics and 22 Professional Services staff) across the GW4 universities.

There is much more we can – and will – do towards our goal of closing the gender and ethnicity gaps altogether. I look forward to working with colleagues across the University to continue this important work.

 

Welcome to this first quarterly University finance update to help you understand our financial performance, how we are doing against our budget and what that means for our financial health.

Financial overview

Over the last year, the University has implemented significant institutional change to the way we deliver on our education and research mission. This has included limiting spending to protect jobs and ensure the University remains on a sound financial footing at a time of great uncertainty. While this approach has been difficult, it has helped the University weather the storm better than many other institutions in our sector. It has also enabled us to do the right thing by our students, including providing an overall package of support for those in halls which totals over £8.3 million to the end of March 2021.

While I hope we’re now past the most significant period of disruption, it’s important that we keep an eye to the future and the possibility of further risks and uncertainties ahead. This means we must continue to be careful in how we make use of the University’s money and resources; plan for a range of scenarios; make a judgement as to the most likely course of events based on the best evidence available; and be flexible and willing to change course should that be required. This will help the University minimise risk, enable us to continue to honour existing commitments and maintain investment capacity to employ more people, enter into partnerships and make other investments that will accelerate our academic mission post-Covid.

How we are doing against our budget

There have been significant movements in the University income and expenditure compared to the original budget, which was signed off by the Board of Trustees in June 2020. A revised budget was finalised in November 2020, once the University had greater clarity over the impact of the pandemic. The forecast is the latest full year prediction as at the end of February 2021:

Income

Our income from tuition fees and funding council grants is forecast to be £15.1m higher than originally budgeted. Student numbers are 4% higher than anticipated, largely in Home Undergraduates where there has been a strong student intake. There have also been additional grants received from Funding Councils (Office for Students and Research England) to support Universities during the pandemic.

The University is also forecasting to exceed budget for Research indirect income, as we have managed to continue with the majority of our research activities during the recent lockdowns.

However, there is forecast to be a significant reduction in accommodation income of over £18m compared to the original budget due to rent rebates and lower occupancy levels during the pandemic. There have also been impacts on catering income (£3m) and sports income (£1m).

Expenditure

Although income levels are slightly reduced overall compared to the original budget, the University is forecasting to spend over £20m more on non-pay and pay costs to support essential activities. Across Faculties and Professional Services, additional posts have been approved since the budget was finalised to provide extra resources to support blended learning, as well as additional cleaning and security staff.

Also, in non-pay costs there has been additional spend to enable blended learning, providing safe transport to and from NHS settings, additional PPE and microscopes. Professional Services non-pay also includes forecast overspend in Education and Student Experience in response to COVID-19, additional cyber security costs, and overspend in Office for Fair Access due to increased undergraduate home students.

The original budget included £52.5m of contingency due to the high levels of uncertainty as to how the pandemic would impact this financial year. As we progress through the year and greater clarity is obtained, this has been reduced.  £5.5m remains in the forecast at the end of February as there is still uncertainty over the final impact of the pandemic. The recent government’s announcement on the roadmap and its impact on the finances will be factored into the forecasts in future months.

Surplus

Every year, our operating income needs to be greater than our operating expenses for that year. This enables us to generate cash to reinvest in the University’s long-term academic needs and research endeavour – including our infrastructure, equipment and IT – and to ensure we have sufficient facilities for the future. Based on changes we have seen and budgeted for, this leaves us with a deficit before Capital Grants of £-6.7m.

Now, more than ever, the University needs to be prepared for an uncertain future, given the lack of clarity on the full impact of COVID-19, future government policies and also potential changes to the Universities Superannuation Scheme (USS) pension scheme that is currently undergoing a new valuation that could increase the costs for all Universities going forward.

University income and expenditure analysis – year ending July 2021

Pensions update

As recently shared with colleagues, the latest USS valuation report sets out the USS Trustee’s assessment of the financial position of the scheme and suggests various pricing scenarios to maintain the existing benefit structure going forward. If ratified over the coming months, these new pricing scenarios could significantly impact member and employer contribution rates.  Some form of change to future pension benefits earned may also be required in response to significant cost increases, but we are working hard to ensure that any changes are as minimal as possible; ideally from our perspective there would be none. Based on the assumptions and methodology used by the USS Trustee in its Report, we will be challenging the size of the scheme deficit and the pricing suggestions both directly with the USS Trustees and through UUK on your behalf. Our Vice-Chancellor recently sent a letter expressing our disappointment at the approach adopted by USS, including their limited adoption of the Joint Expert Panel’s recommendations, to the USS Trustees.

The University will continue to be a vocal and active voice in the ongoing dialogue between the USS Trustee, Universities UK (UUK) and the group of 340 scheme employers about the current and future financial health of the USS scheme and its cost.  We will continue to work hard to lobby to protect the benefit structure and the financial stability of USS, knowing that it is fundamentally important for you to be able to plan financially for your future.

Following the Easter holidays, you will be invited to take part in a consultation on the USS Trustee’s Section 76.1 valuation report and the potential implications for members. We would urge as many of you as possible to input to our University’s response to UUK (who represent the 340 USS employers) and USS. You can read more on our pensions webpage.

In summary

The lead indicators for our institution such as research grant awards and student applications continue to look promising for the future. While we continue to navigate the risks and uncertainties associated with the pandemic, we need to proceed with care over the next few months. Protecting jobs will continue to be a key objective. As the government implements its recovery roadmap and normality (hopefully) begins to return, the University will be in a good place to continue investing in our academic endeavour, our Professional Services, and the future facilities we need to realise our institutional mission.

If you have any questions on the content of this update, or on any other matter, do please contact me at coo@bristol.ac.uk.