Total income in the higher education sector is expected to rise by more than £1bin in 2013-14 as a result of fee increases, according to a new report.
The Higher Education Funding Council for England (HEFCE) report also reveals that universities are projecting surpluses of between 2-4% of total income over the next three years.
UNISON has condemned the fact that these universities are “building their reserves” rather than pay their staff a living wage.
Jon Richards, UNISON’s national secretary for education and children’s services, noted that university staff are struggling to make ends meet, many earning below the living wage, while vice-chancellors are taking massive pay rises.
“This trend of cash surpluses in the sector is likely to continue for years ahead,” he said.
“Surpluses should be used to reward the staff who give the sector its world class reputation – not just the vice-chancellors who revel in it.
“Staff have already shown their anger, having taken part in two days of strike action over the 1% pay offer. There is more to come, unless those rewarding themselves recognise the plight of their staff and make a decent pay offer.”
The HEFCE publication Financial health of the higher education sector: 2012-13 to 2015-16 forecasts predicts that HE finances in England in 2015-16 will be “sound overall”.
UNISON estimates that over the past three years its members have enduring a real-term pay cut of over 13%.