The University of Chichester has become the latest institution to announce it will begin employing staff through a subsidiary firm in a bid to cut its pension costs.

The move, which became effective from 15 April, will see all new staff employed by Chichester Staff Services Limited, rather than directly by the university. It means that new academics will no longer be entitled to the Teachers’ Pension Scheme, and new professional services staff will no longer be entitled to the Local Government Pension Scheme.

Staff will instead receive a “drastically inferior” pension, the University and College Union (UCU) branch said, which will “leave Chichester workers many thousands of pounds per year worse off once they retire”, it said.

A wave of post-92 universities have recently moved their academic staff on to subsidiary firms in order to curb their TPS contribution rates of 28.68 per cent, which they are required to offer by law. Southampton Solent University and Sheffield Hallam University have also made the move, following in the steps of the universities of Coventry, Worcester and Staffordshire, among others. 

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The Chichester UCU branch said it was unable to rule out a strike ballot and potential industrial action in response, and will be meeting soon with members to decide on how best to challenge the changes. 

Jo Grady, general secretary of UCU, said: “Chichester University could have had meaningful consultation with staff about the financial issues it faces and how to resolve them. Instead, it has created a sham company to weasel out of its commitment to allow staff on to industry-standard pensions.

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“Our members will resist this attempt to tear up national agreements, shut down pension access and create a two-tier workforce. They have the national union’s full backing.”

A Chichester spokesperson said: “Like many universities across the sector, the University of Chichester has been impacted by rising costs and is therefore taking action to protect its long-term financial sustainability. As part of a range of measures openly discussed with Unions and staff, the University of Chichester has introduced a new pension scheme with Aviva FlexHE.

“This will apply to new staff joining after 1 April 2026. Existing staff will remain enrolled on their current pension schemes unless they wish to transfer to the new scheme. The proposals were raised with Trade Union representatives in Joint Consultative Group meetings on two separate occasions in September 2025 and February 2026.”

juliette.rowsell@timeshighereducation.com