Vice chancellors at the UK’s top universities are continuing to earn six-figure salaries in spite of the funding crisis engulfing the sector.
The average salary for the highest paid officials at the UK’s 24 Russell Group institutions in 2022-23, the latest period for which figures are available, was £421,000 – up from £413,000 in the previous year.
More than two thirds (17 of 24) of universities increased pay, according to analysis of published accounts.
The figures include the market rental value of their accommodation, pensions and other benefits, in addition to basic salary.
The University of Oxford topped the list, paying out more than £1m over the period (£1,048,000).
Louise Richardson received £289,000 for her time as vice chancellor from August to December 2022, when she left Oxford with an additional “payment in lieu of sabbatical” worth £423,407 – equivalent to a year’s salary.
Professor Irene Tracey, who took over in January 2023, was paid £336,000 for the period up to July.
The second highest earner was Dr Minouche Shafik at the London School of Economics, who received £533,000 as vice-chancellor, a role she left in July 2023 to become president Columbia University.
Baroness Shafik, who was replaced in April 2024 by Larry Kramer, resigned from the New York institution this week over her controversial handling of Gaza war protests on campus.
Dr Michael Spence, president and provost of University College London since 2021, was the third highest paid, receiving £509,849 last year.
Vice-chancellor salaries remain high despite the higher education sector facing a major funding crisis ahead of the new academic year, raising the prospect that some institutions could be forced to close.
A recent report found that 40 per cent of universities are managing budget deficits, with around 70 undergoing redundancy or restructuring programmes.
Vice chancellor salaries in 2022-23 compared to 2021-22
- University of Oxford – 2022-23, £1,048,000. 2021-22, £712,000
- London School of Economics – 2022-23, £533,000. 2021-22, £539,000
- University College London- 2022-23, £509,849. 2021-22 £495,449
- University of Cambridge – 2022-23, £499,000. 2021-22, £526,000
- Imperial College London- 2022-23, £476,000. 2021-22, £714,000
- University of Edinburgh – 2022-23, £418,000. 2021-22, £406,000
- King’s College London- 2022-23, £414,000. 2021-22, £399,000
- University of Birmingham – 2022-23, £407,000. 2021-22, £372,000
- University of Exeter – 2022-23, £405,000. 2021-22, £382,000
- Newcastle University – 2022-23, £404,300. 2021-22, £387,800
- University of Glasgow -2022-23, £400,000. 2021-22, £400,000
- University of Bristol – 2022-23, £396,000. 2021-22, £403,000
- University of Cardiff – 2022-23, £396,000. 2021-22, £326,000
- University of Southampton – 2022-23, £380,000. 2021-22, £347,000
- University of Warwick – 2022-23, £374,000. 2021-22, £372,000
- University of Sheffield – 2022-23, £362,412. 2021-22, £357,550
- Nottingham University – 2022-23, £361,181. 2021-22, £333,058
- Queen Mary University of London – 2022-23. £358,746. 2021-22, £344,941
- University of Liverpool – 2022-23, £358,000. 2021-22, £364,900
- Durham University – 2022-23, £353,000. 2021-22, £343,000
- Queen’s University Belfast – 2022-23, £350,000. 2021-22, £333,000
- University of Leeds- 2022-23, £330,000. 2021-22, £330,000
- University of York – 2022-23, £297,953. 2021-22, £288,562
- University of Manchester -2022-23, £277,000. 2021-22, £276,000
Since 2017, tuition fees have been frozen at £9,250 despite rising inflation, leaving universities making a loss on domestic students.
This has led to a growing reliance on international students, who typically pay double the fees of domestic students, to balance the books.
While money from foreign students previously helped fund research, it now often bolsters the shortfall on domestic undergraduate tuition, with international student fees now accounting for around a fifth of universities’ income.
But more stringent immigration policies, such as a recent crackdown on the number of visas issued to dependants, have led to a fall in overseas applications, placing university finances under further pressure.
The number of sponsored study visas issued to students fell by 31,000 in the year to March, to a total of 447,000, official data shows.
Russell Group institutions have been able to shore up their finances by significantly expanding the recruitment of domestic students, making more course places available.
But this has made it harder for middle-ranking universities – such as Bradford, Hull, Keele, Kent and Surrey – to attract students, putting them in an even worse financial position.
The crisis has prompted calls for the Government to funnel more cash directly to universities via the Office for Students, or to increase tuition fees by around £600, bringing total fees up to £9,850 per student per year, with some advocating a rise up to £10,000.
