Head of UK’s largest university housing firm pockets £2m pay while students struggle with rising rents

'Accommodation providers continue to line pockets as students struggle with bills,' union says

Universities are competing for students at a time when the overall number of applications is falling (PA)

The head of the UK’s largest student accommodation provider was given a near £2m pay package last year at a time when students are struggling to keep up with living costs amid rent hikes.

Richard Smith, chief executive of Unite, received £1,995,708, while Joe Lister, chief financial officer, received a £1.6m package, according to the company’s figures, reported by Times Higher Education.

Their pay packages had totalled £1.4m and £1.3m respectively in the previous year, figures show.

The University and College Union general secretary has accused senior executives of “creaming the system” and helping themselves to massive pay rises “funded by public money and student debt.”

Mr Smith received £445,910 in salary, £15,920 in taxable benefits, £72,081 in pension benefit, £478,822 in an annual bonus and £982,975 via a “long-term incentive plan” in 2018, accounts show.

It comes after the National Union of Students (NUS) revealed that more cash-strapped students are now relying on gambling to pay for their rent.

And some students have been forced to turn to sex work amid rising living costs, The Independent has previously revealed.

Eva Crossan Jory, vice president of welfare at NUS, told The Independent: “It’s outrageous that one individual is paid so much while students accumulate huge debts.

"On average, English students took out a maintenance loan of £5,480 in 17-18 – so this one man’s pay packet has been funded by the equivalent of 363 students’ loans."

She added: "We need to end the exploitation of students who simply need a roof over their heads.”

Jo Grady, general secretary of University and College Union (UCU), said: “Student rent hikes have left increasing numbers of students struggling to keep up with their bills, yet the accommodation providers continue to line their own pockets.

“Survey after survey shows students want to see investment in staff and support services, not expensive buildings.”

A Unite spokesperson said: “Like any public company, Unite’s executive remuneration is determined by an independent committee and approved by shareholders.

“The committee’s job is to ensure that pay is appropriate when measured against comparable companies and that it is linked to the generation of long term value for all stakeholders, namely shareholders, students and university partners.

“As disclosed in our report and accounts, the remuneration committee noted the excellent performance delivered during the year against key performance metrics, including record customer (student) satisfaction and HE sector trust scores and continued outperformance on Total Shareholder Return, and calculated rewards accordingly.”