Four in five universities are looking to shed jobs amid a worsening financial crisis, a new survey has shown.

Polling by Universities UK found 79 per cent of institutions have been pursuing voluntary redundancies over the last three years.

Meanwhile, the same percentage said they have frozen hiring.

It comes amid a squeeze on the sector after domestic tuition fees were frozen for seven years until last autumn.

In addition, interest from international students – who pay much higher fees – has tailed off due to changes in visa rules under the last Government.

Despite this, annual accounts for 2024-25 revealed last year that a number of institutions have rewarded bosses with extra cash while also having to make cuts elsewhere.

Last night, Jo Grady, General Secretary of the University and College Union (UCU) said: 'Four in five universities cutting staff is a complete disaster, not just for students and our members, but for the UK's independent research capacity.

'UCU has continuously highlighted the detrimental impact of job cuts yet vice-chancellors have taken a sledge hammer to the sector, all while bumping up their own inflated salaries to their highest ever levels.'

The annual survey, which had 48 university respondents, found 27 per cent were cutting student bursaries and scholarships – up from 15 per cent.

Meanwhile, 13 per cent reported cutting hardship funding, compared with 9 per cent last year.

Almost a third – 31 per cent – reported making cuts to academic research, up from 14 per cent two years ago.

Two in five institutions said they are open to or actively considering mergers or acquisitions with other universities in the future.

And 44 per cent said they had closed courses over the last three years.

Vivienne Stern, Chief Executive of Universities UK, the membership organisation for vice chancellors, said: 'Universities are grasping the nettle to respond to the severe financial pressures they are facing.

'Many have had to make significant cuts, but the survey also shows how the sector is finding creative, collaborative solutions to become more efficient.'

It comes after data for 2024/25 showed a number of vice chancellors getting a pay rise at a time of strained finances.

In one example, Nottingham Trent University – which reported a £2 million deficit – paid its departing vice-chancellor Edward Peck a bonus of £66,000 in his last year in the job.

This is despite Nottingham Trent making significant cuts – paying out over £9 million in compensation payments for staff redundancies.