Universities face pay curbs

UNIVERSITIES will be fined unless they can justify paying their vice-chancellor more than the Prime Minister.

Jo Johnson, the minister for universities and science, will unveil plans today that will force institutions to demonstrate that vice-chancellors earning more than £150,000 represent value for money.

The minister’s announcement comes amid growing concern about the largesse of universities, where vice-chancellors now typically enjoy six-figure packages, grace-and-favour homes and gold-plated pensions. Writing in today’s Daily Telegraph, Mr Johnson says that universities must be able to “embrace accountability” and to “confidently stand up to the most acute scrutiny”.

“I will set out plans to restrain the spiralling growth in senior pay and boost confidence in the work of remuneration committees,” he writes.

“The best way for universities to respond to their critics is by showing beyond doubt that they offer excellent value for money to their students and by working tirelessly to address areas where improvement is required.”