Pay and conditions of service are subject to negotiations between the HE employers, their staff and their representative trade union bodies. The Government play no part in this. As such, determining the cost of the pay offer is a matter for individual institutions. Higher education receives funding from a variety of public and private sources. It is a matter for institutions, as autonomous bodies, to determine how they use the resources available to them. Public funding for 2008-09 and beyond will be determined through the comprehensive spending review.
The Universities and Colleges Employers Association (UCEA) has included estimates of the pay offer on its website (http://www.ucea.ac.uk/). UCEA’s calculations estimate that the current pay offer will exceed the total additional income from variable fees, in steady state which we estimate will be £1.35 billion by 2010.