READING University’s vice-chancellor has defended its pay policy - even though 10% of staff are paid below the living wage.

Figures obtained through a Freedom of Information (FOI) request have revealed the university pays 378 of its workers less than £7.45 an hour. Of this number, 200 are on casual contracts and 178 are employed permanently, mostly as cleaners, front of house assistants, and kitchen staff.

The shock statistics were unveiled the same week it was confirmed that vice-chancellor Sir David Bell’s annual salary is expected to increase by nearly £18,000 next year, to £250,000 a year.

But Sir David said: “The general pay package of our staff is competitive. The university remains an attractive employer in Reading and our pay packages for the lowest paid workers are better than any you would find in the town.”

The Living Wage, promoted by the Living Wage Foundation, aims to set a benchmark minimum wage. At the time of the FOI, it was £7.45 an hour outside London, but has since increased to £7.65.

The university’s financial statements from last year reveal more than 32 senior staff earn more than £100,000 a year, with three earning more than £200,000.

But Sir David argued the living wage is not the only measure worth looking at and said the benefits of university workers earning below that figure - such as competitive pension and holiday entitlements and access to discounted transport and childcare costs - means the overall package for lower paid workers is generous.

He said: “We feel that the added benefits which we offer our staff makes the University a great place to work.

“We offer discounted courses at the University, for example, as well as many other benefits which make all of our pay packages attractive.”

He denied the decision not to pay the living wage was due to financial constraints at the university, and stressed he plays no part in setting his own salary.

He said the university’s pay policy was “not out of line”, and explained that his salary will be fixed at a quarter of a million pounds a year for the next three years.

But Dr Paul Hatcher, president of the Reading branch of the Universities and College Union (UCU) said he was “disappointed”, and added: “Always playing to the market in respect of pay is not something we want to be doing. We should be seeking to narrow the pay gap and not widen it.

“If we have people below the living wage and we have a range of people paid very high salaries, we need to address that.”