Update on university pay negotiations and USS pension scheme

Dear colleagues, 

I am writing to provide an update on the university pay negotiations which are currently taking place and the upcoming valuation of the Universities Superannuation Scheme (USS) pension scheme.  

Pay negotiations 

Pay levels are negotiated nationally by the Universities & Colleges Employers’ Association (UCEA). We have encouraged UCEA to bring negotiations for the 2023/24 pay round forward. These negotiations are currently ongoing, with the aim of awarding a proportion of the uplift in pay from February 2023, six months earlier than usual, with the remainder implemented from August 2023. Two pay negotiation meetings have taken place on the 2023/24 pay round, on 9 and 16 January 2023, with a third scheduled for next week on Wednesday 25 January. 

UCEA has put an offer to the joint unions to uplift the 2023/24 pay spine which, if implemented, would see staff earning a full-time equivalent salary of £54k (including London allowance) or below receiving a minimum uplift of 5%. Those on the lower pay points would receive higher increases of up to 7%. The increase would be staged, with the first part effective from February 2023 and the remainder from August 2023. This would be in addition to any incremental progression due to individual members of staff. A copy of the UCEA offer is available on the UCEA website. 

The trade unions’ claim is for a pay uplift of Retail Price Index (RPI) plus 2% or a flat rate of £4,000, whichever is greater for each individual spinal point. By UCEA’s calculations this amounts to a 13.3% pay increase. Compared to current salary levels, the additional cost of this at UCL would be over £100m per annum if just applied to base salary (excluding our London allowance).  

Negotiations are ongoing and we are likely to know the outcome following the final negotiations meeting on 25 January 2023. 

We have, and continue to, push for an increase above levels we have seen in recent years, in recognition of the increases in the cost of living. Where we have local control, we have also recently implemented an uplifted 2022/23 London Allowance and extended the number of staff who are eligible to receive it. At the same point we also increased the salary range minimum and maximum for Research Assistants. This resulted in a median raise of 4% (excluding any automatic incremental progression that staff may have received in addition) at UCL last year, with a much higher percentage increase between grades 1-5. 

USS pension scheme 

Through UUK (Universities UK - which represent the 340+ employers in USS), we also continue to push for improved pension benefits. UCL remains committed to the scheme and achieving the best possible outcome for all our staff. The next valuation in March 2023, may provide the USS Joint Negotiation Committee with an opportunity to explore options that could improve the existing benefit structure for scheme members going forward. UCL will reiterate our position to continue to drive for improved benefits during the valuation and associated consultation processes. 

If the financial position has improved for USS at the next valuation, it has indicated that it could be possible to either increase the retirement benefits that USS members receive whilst retaining the existing contribution level, or alternatively reduce the cost of employee contributions while maintaining the current level of benefits. A mix of these approaches may also be possible, dependent on the financial position. If positive improvements to the scheme are possible, as we all hope, we will continue to consult our staff and to ensure that our input to USS reflects wider staff views. We will keep you updated on this during and after the valuation in March.  

Like every university, UCL is facing unprecedented financial uncertainty and, as the Provost said in his message to staff last week, we recognise that these are exceptionally challenging times. A pay award that fully matches current levels of inflation is unattainable in the tough environment we are in right now.  This notwithstanding, we are working hard to drive improvements and to push for progress, both in the ongoing pay negotiations and the upcoming pension valuation consultation. 

Donna Dalrymple

Chief People Officer, UCL