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<p>Minister Johnson, the Minister for Universities and Science, in his speech at Reform
on 20 July 2017, called on the sector to put an end to increasing vice chancellor
pay and provide justification for the exceptional circumstances for large pay awards
to improve value for money.</p><p> </p><p>He also announced that he will be issuing
new guidance to the Office for Students (OfS) to use its powers to address this problem.</p><p>
</p><p>Universities are autonomous bodies and it is their responsibility to determine
pay arrangements for their staff. However, Minister Johnson has called for action
to put an end to the upward spiral in vice chancellors’ pay.</p><p> </p><p>The Government’s
2017/18 grant letter to the Higher Education Funding Council for England (HEFCE) stated:</p><p>
</p><p>“The Government is clear that efficiency includes demonstrating restraint in
senior pay and remains concerned about the substantial upwards drift in salaries of
some top management. We would like to see senior leaders in the sector exercise more
pay restraint.”</p><p> </p><p>HEFCE issued guidance to the sector on severance pay
and the remuneration of senior staff in June 2017: <a href="http://www.hefce.ac.uk/pubs/year/2017/CL,172017/"
target="_blank">http://www.hefce.ac.uk/pubs/year/2017/CL,172017/</a> (copy attached).</p><p>
</p><p>It states that governing bodies and remuneration committees should always bear
in mind the principles outlined and to record clearly the rationale behind their decisions,
including any divergence from the guidance.</p>
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