Asked by: Lord Adonis (Labour - Life peer)
Question to the Department for Education:
To ask Her Majesty's Government what action they intend to take following the report on governance surrounding senior pay at Bath University by the Higher Education Funding Council for England, published on 20 November, which found that Bath university has “a significant distance to travel” to open its remuneration committee’s work to legitimate scrutiny through enhancing its use of various measures of transparency.
Answered by Viscount Younger of Leckie - Parliamentary Under-Secretary (Department for Work and Pensions)
Under existing legislation, it is the Privy Council that has a role in approving the governing documents, and amendments to them, of publicly funded higher education providers.
Publicly funded higher education providers are expected to comply with the Committee of University Chairs’ Code, “The Higher Education Code of Governance” as part of their conditions for Higher Education Funding Council for England (HEFCE) funding (copy attachment).
As such, it is for HEFCE as the regulator to take any action necessary in response to the report. We understand that HEFCE intends to follow-up its recommendations in this report. The university has agreed to provide HEFCE with a report on progress with the recommendations in December. There is also a planned periodic HEFCE Assurance Review of the University of Bath due to take place early next year.
We are currently consulting on behalf of the new regulator, the Office for Students (OfS), on its new Regulatory Framework, due to come into force for the academic year 2019/20. Under those proposals, the OfS will be responsible for ensuring providers’ governing arrangements are appropriate, which includes requirements for providers in the approved categories to operate openly, honestly, accountably and with integrity, and publish a statement on the steps they have taken to ensure value for money for students and taxpayers.
In addition, our proposals are designed to ensure sufficient transparency around senior staff pay, by requiring providers to publish the number of staff paid more than £100,000 per annum, which for staff paid more than £150,000, should include a justification for these salaries.
Asked by: Lord Adonis (Labour - Life peer)
Question to the Department for Education:
To ask Her Majesty's Government what meetings the Minister of State for Universities and Science has held with (1) the Higher Education Funding Council for England, and (2) the Office for Students to discuss issues relating to (a) Vice-Chancellors’ pay, and (b) the governance of universities in England; and what was the outcome of those meetings.
Answered by Viscount Younger of Leckie - Parliamentary Under-Secretary (Department for Work and Pensions)
My hon. Friend the Minister of State for Universities, Science, Research and Innovation meets monthly with colleagues from Higher Education Funding Council for England (HEFCE). Since the Minister’s speech to the higher education sector in July, the topic of vice-chancellors’ pay and governance is regularly discussed in the context of general discussions and when the minister updates HEFCE on progress with policy development on this topic.
The minister meets fortnightly with colleagues from the Office for Students (OfS). These meetings have included discussion of the consultation on the OfS’s proposed new regulatory framework. This framework will set out how the OfS will regulate providers in future, namely in a risk-based and proportionate way, aimed at bringing stability for the sector, and delivering value-for-money for students and taxpayers. It also describes the proposed conditions which providers must meet in order to register with the OfS, which include conditions around accountability and transparency around senior staff pay.
Asked by: Lord Adonis (Labour - Life peer)
Question to the Department for Education:
To ask Her Majesty's Government what assessment they have made of increases in Vice-Chancellors’ salaries since the announcement by the Minister of State for Universities and Science on 7 September that they would “unveil a series of new measures designed to curb spiralling vice-chancellors’ pay”.
Answered by Viscount Younger of Leckie - Parliamentary Under-Secretary (Department for Work and Pensions)
My hon. Friend the Minister of State for Universities, Science, Research and Innovation has been clear that he wants to see an end to the upwards trend in senior staff pay. Since his announcement on 7 September, the government has published details of its proposed measures.
We are currently consulting on behalf of the new regulator, the Office for Students (OfS), on its new Regulatory Framework, due to come into force for the academic year 2019/20. Under those proposals, the OfS will be responsible for ensuring providers’ governing arrangements are appropriate, which includes requirements for providers to publish the number of staff paid more than £100,000 per annum, which for staff paid more than £150,000, should include a justification for these salaries.
We also called on the sector to work through the Committee of University Chairs (CUC) to develop and introduce its own fair remuneration code, and are pleased that the CUC is taking forward the development of this code.
These measures, once implemented, will deliver greater transparency and accountability, as well as improved value for money for taxpayers and for students.
Asked by: Lord Adonis (Labour - Life peer)
Question to the Department for Education:
To ask Her Majesty's Government whether Professor Madeleine Atkins is restricted from taking remunerated employment from, or entering into contracts with, English universities following the expiry of her term as Chief Executive of the Higher Education Funding Council for England; and if not, whether they intend to seek an undertaking from her that she will not enter into such employment or contracts.
Answered by Viscount Younger of Leckie - Parliamentary Under-Secretary (Department for Work and Pensions)
In her employment with the Higher Education Funding Council for England (HEFCE) and as a public appointee, Professor Madeleine Atkins is bound by the HEFCE board code of practice for board members, the Nolan Principles and confidentiality required as a HEFCE employee.
Ongoing contractual arrangements are a matter between the employee and the HEFCE as the employer.
Asked by: Lord Adonis (Labour - Life peer)
Question to the Department for Education:
To ask Her Majesty's Government what assessment they have made of the extent to which any conflict of interest arises in respect of Professor Madeleine Atkins’ role as Chief Executive of the Higher Education Funding Council for England, given her position as a former Vice-Chancellor.
Answered by Viscount Younger of Leckie - Parliamentary Under-Secretary (Department for Work and Pensions)
Since her appointment as Chief Executive of the Higher Education Funding Council for England (HEFCE) in January 2014, there have been no conflicts of interest between Professor Madeleine Atkins’ current role and her former position as Vice-Chancellor of the University of Coventry.
All public appointees are required to declare any conflicts of interest which arise. HEFCE maintains a register of such declarations, a copy of
Professor Madeleine Atkins’ registered interests are attached. This can be found at the following address:
http://www.hefce.ac.uk/about/members/Professor,Madeleine,Atkins/.
Asked by: Lord Adonis (Labour - Life peer)
Question to the Department for Education:
Her Majesty's Government what steps they will take to limit increases in senior managaement pay in the higher education sector.
Answered by Baroness Sugg
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.
He also announced that he will be issuing new guidance to the Office for Students (OfS) to use its powers to address this problem.
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.
The Government’s 2017/18 grant letter to the Higher Education Funding Council for England (HEFCE) stated:
“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.”
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/ (copy attached).
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.
Asked by: Lord Adonis (Labour - Life peer)
Question to the Department for Education:
Her Majesty's Government whether the Chief Executive of the Higher Education Funding Council for England has met or written to the Vice Chancellor of Bath University or the Chair of the Council of Bath University to discuss the pay of the Vice Chancellor of Bath University.
Answered by Baroness Sugg
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.
He also announced that he will be issuing new guidance to the Office for Students (OfS) to use its powers to address this problem.
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.
The Government’s 2017/18 grant letter to the Higher Education Funding Council for England (HEFCE) stated:
“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.”
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/ (copy attached).
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.
Asked by: Lord Adonis (Labour - Life peer)
Question to the Department for Education:
Her Majesty's Government whether any Minister or official has met the Chief Executive of the Higher Education Funding Council for England to express concerns about top management pay in the higher education sector; and, if so, what was the outcome of any discussion.
Answered by Baroness Sugg
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.
He also announced that he will be issuing new guidance to the Office for Students (OfS) to use its powers to address this problem.
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.
The Government’s 2017/18 grant letter to the Higher Education Funding Council for England (HEFCE) stated:
“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.”
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/ (copy attached).
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.
Asked by: Lord Adonis (Labour - Life peer)
Question to the Department for Education:
Her Majesty's Government whether any Minister or official has met or written to the Vice Chancellor of Bath University or the Chair of the Council of Bath University to discuss the pay of the Vice Chancellor.
Answered by Baroness Sugg
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.
He also announced that he will be issuing new guidance to the Office for Students (OfS) to use its powers to address this problem.
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.
The Government’s 2017/18 grant letter to the Higher Education Funding Council for England (HEFCE) stated:
“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.”
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/ (copy attached).
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.
Asked by: Lord Adonis (Labour - Life peer)
Question to the Department for Education:
Her Majesty's Government, in the light of the Minister for Higher Education's advice to the Higher Education Funding Council for England that there should be restraint in senior management pay in the sector, whether they conside the salary of £451,000 paid to the Vice Chancellor of Bath University to be appropriate.
Answered by Baroness Sugg
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.
He also announced that he will be issuing new guidance to the Office for Students (OfS) to use its powers to address this problem.
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.
The Government’s 2017/18 grant letter to the Higher Education Funding Council for England (HEFCE) stated:
“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.”
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/ (copy attached).
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.