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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>
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>
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\u2019 pay.<\/p>
<\/p>
The Government\u2019s 2017/18 grant letter to the Higher Education Funding Council for England (HEFCE) stated:<\/p>
<\/p>
\u201cThe 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.\u201d<\/p>
<\/p>
HEFCE issued guidance to the sector on severance pay and the remuneration of senior staff in June 2017: http://www.hefce.ac.uk/pubs/year/2017/CL,172017/<\/a> (copy attached).<\/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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