It was revealed last week that five university heads received pay increases of 20 per cent or over compared to their earnings for the 2009/10 period.

56 university heads enjoyed wage increases and 13 were over five per cent of their previous year’s earnings, all of which were above inflation.

This news comes in spite of the fact that the Business Secretary, Vince Cable, advised university heads to show restraint when it came to pay increases.

Speaking to The Telegraph, a spokesperson for the Department of Business, Innovation and Skills said, “universities should bear in mind that everyone is having to hold down their costs at the moment. They must ensure they offer good value for money for the benefit of their students.

“Ministers have called on universities to demonstrate pay restraint and expect that the lead on this should come from the very top.”

They did, however, call attention to the fact that the final decision lay with the universities and not with the Government.

The largest pay increase went to the incoming chief of City University in London, Professor Paul Curran, who received a 35 per cent increase on his predecessor’s pay.

The highest paid university head is Professor Andrew Hamilton of Oxford University, whose university income came in at £424,000, more than 14 times that of the average Scottish secondary school teacher. The average vice-chancellor’s pay was £239,000.

Many students have seen this development as worrying, given that the pay increases were made very soon after the UK Government increased the cap on university tuition fees.

Robin Parker, president of the National Union of Students Scotland said, “it’s disgraceful to see principals receiving such high pay awards, particularly after so many pleaded poverty to the Scottish Government and introduced high tuition fees for students from the rest of the UK.

“At a time when all areas of Scottish society are facing an economic squeeze, it’s unacceptable for university principals to be receiving such pay increases.”

Nicola Dandridge, chief executive of Universities UK, the representative body for vice-chancellors defended the wage increases.

Speaking to The Telegraph, she said, “the remuneration packages for vice-chancellors reflect what it takes to recruit and retain individuals able to run complex, multimillion pound organisations, which are operating in an increasingly competitive global market.”

These increases call attention to the findings of a recent Scottish Government review into the governance of universities in Scotland.

The report, headed by Ferdinand von Prondzynski, the principal of Robert Gordon University, recommends that well paid university principals should no longer receive bonuses and that pay rises should be linked to the average increases afforded to other members of staff.

It also proposes that wages be set by remuneration committees composed of both staff and students.

Speaking to The Student, Robin Parker said, “we fully support the Review’s finding that students, like staff, should be involved in addressing principal’s pay.

“By including the voice of students at every stage, and addressing the issue of spiralling pay levels for senior management, we can make certain that public money is put to better use, such as improving access for students from disadvantaged backgrounds.”