University leaders paid £250,000 a year as students fees are tripled Many vice-chancellors received a pay rise in lieu of reduced pension contributions, following a change in tax laws. Three years ago, Vince Cable, the Business Secretary, pleaded with universities to rein in senior leaders" pay, saying it bore "no relation to the underlying economics of the country." According to the magazine, vice-chancellors" overall packages, including salary, benefits and pensions, increased by 0.5 per cent to an average £247,428. But salary and benefits alone increased by 2.7 per cent - more than £5,000 each - to an average of £219,681. Prof Hamilton's overall package remained the same as a year earlier. Prof David Eastwood, vice-chancellor of Birmingham, received £406,000 in salary, pensions and benefits, up 1 per cent. One of the largest salary increases went to Dame Glynis Breakwell, at Bath, whose basic salary rose by £72,000 to £356,000. But she saw her employer pension contributions fall from £65,000 to just £11,000. Pension rules have changed to reduce the amount that can be paid into an employee's pot tax-free. Sally Hunt, general secretary of the University and College Union, said the figures were "galling" for lecturers who have faced real-terms pay cuts and students charged up to £9,000 for tuition. "The lack of self-awareness from university leaders when it comes to their own pay and perks continues to be an embarrassment for the sector," she said. A spokesman for Universities UK said salaries were in line with those in competing countries and comparable to similar-sized public and private organisations.