The Universities and Colleges Employers Association upped its 2012-13 offer from the previous 0.5 per cent at a meeting with the unions on 20 April.

But the offer was turned down by the sector¡¯s five unions: the Educational Institute of Scotland, the GMB, Unison, Unite, and the University and College Union.

The unions had entered a joint 7 per cent claim. They argue the rise is needed to ensure pay keeps pace with inflation and to make up for three previous years of below-inflation settlements across the sector: at 0.5 per cent, 0.4 per cent and 0.5 per cent.

But Ucea says the claim would cost the sector ?1 billion and was ¡°not achievable in light of sustainability for ÖйúAƬ institutions¡±.

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Michael MacNeil, the UCU¡¯s head of ÖйúAƬ, said: ¡°The latest offer represents another real-terms pay cut at a time when many universities have increased their financial surpluses. We expect a decent pay settlement that ensures staff are properly rewarded for their skill and commitment.¡±

Mike Robinson, Unite national education officer, called the 0.8 per cent offer ¡°an insult¡±.

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He added: ¡°With our members already struggling with the rising cost of living and household bills soaring, this derisory offer represents a real-terms pay cut.¡±

The unions' claim also seeks a commitment from universities to pay the Living Wage (currently ?7.20 per hour outside London) as a minimum for all staff.

Paul Curran, Ucea chair and vice-chancellor of City University London, said it was ¡°another constructive meeting as both sides explored elements of the claim in more detail within the context of uncertainty within the sector¡­Recent research shows that HE pay and benefits packages continue to compare favourably to those outside of the sector.¡±

john.morgan@tsleducation.com