New figures reveal that, despite huge pay rises for vice-chancellors, universities are actually spending less on staff

The figures, from the Higher Education Statistics Agency (HESA), show that staff costs as a percentage of total expenditure fell in 2008-9 to 56.8%, compared with 57.4% in 2007-8, despite a 5% pay rise in October 2008 that universities said at the time was on the brink of affordability. This is the lowest staff costs have been since HESA started publishing data for the higher education sector in 1994-5.*

UCU said the figures made a mockery of claims by some universities that rocketing wage bills were the reason they were looking to axe jobs. The union added that the recent furore over whopping pay rises for vice-chancellors looked even more embarrassing for universities when put next to staff pay.

UCU general secretary, Sally Hunt, said: 'Universities have been arguing against pay rises on the basis that they already spend too much on staff. Today's figures show that is simply not the case. These figures are from the year of a pay rise we were told was at the brink of affordability. When put against the recent massive pay rises for those at the top, the figures are further evidence that there is one rule for them and one for the rest.

'We suggest universities do a proper analysis of the figures before they come back to us with a decent and fair pay offer this year."

Source: HESA, Resources of Higher Education Institutions, series; % calculation UCU

*while staff costs increased by 7.9% in 2008-9 compared with the previous year, other operating expenditure increased by 10.0%, indicating that operating expenditure on non-staff items needs to be controlled more than spending on staff. Pay and benefits for vice-chancellors increased by an average of 10.6% in 2008-9 compared with the previous year, although that figure does not include pension payments.

The full figures can be found on the HESA website.