December 8, 2024
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How two thirds of vice chancellors at cash-strapped UK universities took pay rises last year


At least two thirds of vice chancellors at cash-strapped universities took pay rises last year, new analysis has revealed.

Of the 66 institutions known to be making redundancies or taking cost-cutting measures, 43 gave their vice chancellor a pay bump.

Some were awarded massive pay package boosts of up to 26 per cent, with many pocketing total deals well over £400,000 a year.

The average salary increase across these institutions between 2021/22 and 2022/23 – the latest available data – was 8.3 per cent.

It comes after Universities UK, which represents vice chancellors, said some sector finances had deteriorated ‘fast’ and called for Government help.

And on Thursday, the consultancy Public First called for a £2.5 billion fund to provide state-backed loans for universities to avoid them going under. It warned ministers must make a plan to prepare for the threat of at least one university collapsing due to financial woes.

Of the 66 institutions known to be making redundancies or taking cost-cutting measures, 43 gave their vice chancellor a pay bump (Stock image)

Of the 66 institutions known to be making redundancies or taking cost-cutting measures, 43 gave their vice chancellor a pay bump (Stock image)

Teesside University's vice chancellor Paul Croney saw his total remuneration package rose by a staggering 17 per cent, from £312,139 in 2021/22 to £364,305 in 2022/23

Teesside University’s vice chancellor Paul Croney saw his total remuneration package rose by a staggering 17 per cent, from £312,139 in 2021/22 to £364,305 in 2022/23

Last night, a spokesman for the University and College Union (UCU) said: ‘The public will rightly be appalled when they see the engorged salaries vice chancellors are raking in, despite presiding over a broken sector.

‘Thousands of staff are at risk of being made redundant, tens of thousands more are on insecure contracts.

‘Vice-chancellors urgently need to reign in their own pay packets and start protecting jobs, courses and student provision.’

John O’Connell, chief executive of the TaxPayers’ Alliance, added: ‘Taxpayers will be bristling at the brass neck of university bosses who come cap in hand demanding a bailout while their own wallets get wider.’

The figures were revealed by Daily Mail analysis of pay rise data compiled by Times Higher Education, and separate data published by UCU academics.

In one stark example, Teesside University, in the North East, announced a ‘university-wide voluntary severance scheme’ earlier this year in the face of ‘current challenges’.

Despite this, the vice chancellor’s total remuneration package rose by a staggering 17 per cent, from £312,139 in 2021/22 to £364,305 in 2022/23.

Meanwhile, Bradford University is facing a funding black hole of £10 million and announced job losses in March.

At the beginning of the year, Leeds Beckett University (pictured) opened a voluntary severance scheme

At the beginning of the year, Leeds Beckett University (pictured) opened a voluntary severance scheme

Leeds Beckett University's vice chancellor Professor Peter Slee (pictured) saw his total remuneration jump by 6.5 per cent to £313,000 in the year to 2022/23

Leeds Beckett University’s vice chancellor Professor Peter Slee (pictured) saw his total remuneration jump by 6.5 per cent to £313,000 in the year to 2022/23

Despite its financial difficulties, its vice chancellor’s total pay package increased by more than 11 per cent to £290,000 between 2021/22 and 2022/23.

Swansea University is haemorrhaging 200 staff in cost cutting measures brought in by vice chancellor Professor Paul Boyle, who saw his total pay package increase by more than 9 per cent to £359,000 in 2022/23.

At the beginning of the year, Leeds Beckett University opened a voluntary severance scheme.

But its vice chancellor Professor Peter Slee saw his total remuneration jump by 6.5 per cent to £313,000 in the year to 2022/23.

Meanwhile at Nottingham University – where the vice chancellor’s package rose by 8.4 per cent to £361,181 a year – hiring freezes, budget cuts, the axing of hundreds of fixed-term contracts and a redundancy scheme have been ushered in as the university hurtles towards an end of year budget deficit.

Wolverhampton University has just announced a voluntary redundancy scheme, following a similar plan in 2022 which saw jobs axed to tackle a £20 million deficit.

Its accounts show that the vice chancellor package in 2021/22 was 28 per cent higher than in 2022/23, going from £345,000 to £443,000.

During that time, the university had two interim vice chancellors.

The vice chancellor at Coventry University, Professor John Latham, has received a bonus in every year of his tenure since 2014, including almost £200,000 over the last three years and £80,768 in 2022-23.

Teesside University, in the North East, announced a 'university-wide voluntary severance scheme' earlier this year in the face of 'current challenges' but its vice chancellor Paul Croney (pictured) received a pay rise

Teesside University, in the North East, announced a ‘university-wide voluntary severance scheme’ earlier this year in the face of ‘current challenges’ but its vice chancellor Paul Croney (pictured) received a pay rise

SOAS (pictured) said that the total package in 2022/23 included the VC's accommodation as a taxable benefit across two academic years and did not represent an increase

SOAS (pictured) said that the total package in 2022/23 included the VC’s accommodation as a taxable benefit across two academic years and did not represent an increase

That comes despite the institution warning that it must make nearly £100 million in cuts over the next two years.

Professor Adam Habib, president of London University’s School of Oriental and African Studies (SOAS) – where 34 English language and study skills support staff are at risk of losing their jobs – received a total package worth £410,061, up from £324,074 in 2021/22 – a 26 per cent increase.

SOAS said that the total package in 2022/23 included the VC’s accommodation as a taxable benefit across two academic years and did not represent an increase.

It also included a retrospective payment of £21,660 to cover tax paid.

‘Excluding these payments, the VC’s basic pay increased by 4.7 per cent from 2021/22 to 2022/23 from £223,773 to £234,204,’ a spokesman added.

A Teesside University spokesperson said: ‘The university met all financial indicators in the academic year 2021/22 and 2022/23 and remains in a robust financial position. Following developments in several key areas, a review of operating models was undertaken and a voluntary severance scheme opened as part of this. Senior management pay is set in line with UCEA sector benchmarking and is determined by the Remuneration Committee, of which the Vice-Chancellor is not a member.’

Bradford University said vice chancellor pay was set by the remuneration committee.

A spokesman said: ‘It is made up of members external to the university and which takes multiple factors into account to ensure pay awards are comparable with the sector and representative of performance.’

A spokesman for Leeds Beckett University said: ‘The University returned a small surplus in 2022/23.

‘We meet the requirements for financial stability and sustainability set by the Office for Students (OfS).

‘To put ourselves in the strongest possible position to meet the future financial challenges facing the wider sector, we have taken action to reduce our costs including offering a voluntary severance scheme.’

A spokesman from Universities UK said: ‘Vice chancellors’ pay is set by their institution’s governing body, and reflects the level of responsibility which comes with running a large organisation with multiple significant responsibilities.’

The other universities mentioned were contacted for comment.

It comes after the Office for Students (OfS) watchdog warned 40 per cent of England’s universities are expected to run budget deficits this year.

Universities are struggling with a drop in lucrative international students, capped UK fees, rising running costs and pension contributions.

Earlier this year, the UCU said its own independent consultant had identified three unnamed universities which ‘would be close to financial collapse and would benefit from state intervention and support’.

Meanwhile, Vivienne Stern, chief executive of Universities UK (UUK), said the financial position for universities has deteriorated ‘very fast’ in the past year.

She said: ‘So what we’ve said is if a university is viable, most of them are, but needs a bit of help to get through a rapid deterioration of their financial position, that Government should be ready to stand as a kind of lender of last resort to enable them to get through that.’



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