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UCEA uses CPIH (Consumer Price Inflation including owner-occupiers’ Housing costs) to calculate Higher Education pay (Employers’ Statement 2018-19, 23 March 2018, p.2). But USS uses RPI+1% (Retail Prices Index) to calculate pensions deficit and UK government uses RPI+3% to set student loans interest rate. Because RPI (March 2018, 3.3%) is higher than CPIH (March 2018, 2.3%).
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HE employers make final offer on base pay for all of between 2.8% and 2% to “highly-valued staff” (UCEA, 11 May 2018). But USS assumes pay increase of RPI + 1% (4.4%) per year.
