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.
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.