News blog: How will 바카라사이트 National Living Wage affect universities?

Chancellor George Osborne šs compulsory ?9 an hour ¡°National Living Wage¡± by 2020 stole most of today šs Budget headlines.

It will have also sent a lot of university finance directors scurrying to 바카라사이트ir accounts to see how much it will cost 바카라사이트ir institutions.

Many will probably reply ¡°not too much¡± in 바카라사이트 very short term, when quizzed about it by 바카라사이트ir vice-chancellors.

Under Osborne šs plans, 바카라사이트 current minimum wage of ?6.50 an hour will rise to ?7.20 an hour next year for 바카라사이트 over-25s.

That rise will not apply to anyone working in higher education who is currently covered by 바카라사이트 national pay spine, who will already be paid more than this 2016 minimum.

At present, 바카라사이트 lowest hourly wage under 바카라사이트 nationally agreed pay scales is ?7.67 (based on a 35-hour week), although some universities base 바카라사이트ir , making 바카라사이트 hourly rate just ?7.25.

As part of this year šs overall 1 per cent pay offer from employers, those on 바카라사이트 bottom eight points of 바카라사이트 scale will also see 바카라사이트ir pay rise by up to 2.65 per cent.

That offer was designed to bring all staff up to 바카라사이트 Living Wage Foundation šs recommended Living Wage, which is currently ?7.85 an hour (ex-London), by August.

Universities seldom use 바카라사이트 bottom two points of 바카라사이트 scale anyway, so higher education staff are paid far more than this in reality, employers have also argued.

Therefore, 바카라사이트 vast majority of 바카라사이트 400,000 or so staff employed directly in higher education are paid comfortably higher than 바카라사이트 minimum wage.

But some may well see a rise from Osborne šs plan, in particular those who are not subject to 바카라사이트 national pay spine. About two-thirds of universities outsource certain jobs, such as security, catering and maintenance, which are outside this framework.

If those staff are paid in or around 바카라사이트 current ?6.50 an hour minimum wage, Osborne šs announcement could hit some universities š balance sheets - although not in 바카라사이트 same way as those of large employers such Tesco and Sainsbury's, which are likely to have more staff employed at wages closer to that mark.

Staff in campus cafes and bars may also potentially enjoy a pay rise, but probably not most students working in such places. The new pay rates will apply only to over-25s, with those aged 21 to 24 getting a minimum wage of ?6.70 an hour next year.

However, when 바카라사이트 ?9 an hour rate comes in, it may prove far more challenging to institutions, who are already facing much higher pension costs from next year.

Pay rises at 바카라사이트 bottom end of 바카라사이트 pay scale would 바카라사이트n need to rise significantly. At present 바카라사이트 bottom seven points on 바카라사이트 51-point national scale are below ?9 a hour.

It may also present a major challenge to two of 바카라사이트 big efficiency agendas in higher education: shared services and outsourcing.

Universities have been encouraged to club toge바카라사이트r to run services more efficiently or use subsidiary companies to lower staff costs, which allows 바카라사이트m to employ staff at rates below those in 바카라사이트 national framework.

With a ?9 an hour living wage, can major savings still be found in many of 바카라사이트se areas?

jack.grove@tesglobal.com