Pension Schemes: Universities

Lord Cormack Excerpts

Thursday 7th September 2017 Lords Chamber

[Viscount Younger of Leckie]

The House may not be surprised to hear me say that it does not need reminding about the passage of the Higher Education Act, when there was a strong focus on universities being autonomous institutions responsible for their own finances. While the Government cannot intervene in a higher education institution’s finances, we do set and will continue to set the maximum fee cap.

On pension schemes, the independent Pensions Regulator has powers to protect member benefits under circumstances set out in legislation, and that remains.

[Lord Cormack (Con)]

If the Government cannot interfere in university finances, why are they making statements about how much vice-chancellors should be paid?

[Viscount Younger of Leckie]

I should just point out to my noble friend that the Government are not making statements about how much they should be paid. My honourable friend in the other place, Jo Johnson, made a speech this morning reiterating his point that universities should exercise great restraint in deciding how much to pay vice-chancellors and other staff and has set out a series of guidance. Furthermore, the Office for Students, which has been set up as part of the Act, will also be given greater powers and encouragement to set a remuneration code.