The principal of Carsahalton College was awarded an inflation-busting pay rise in the same year staff were being dismissed and a department closed down, official documents show.

Carshalton College principal Dr David Watkins, who sits among the top paid college principals in London with an annual salary of £124,000, received a 6 per cent pay rise starting from January 1, 2008, while other members of staff were given a 2.5 per cent raise.

A month later the college’s department of travel and tourism was closed and two members of staff made redundant The college last week announced plans to shut down the Performing Arts course.

The figures came from a Learning and Skills Council report into college accounts.

A source from the college said: “So far as I can work out, last year there were eight people made redundant. This included the closure of travel and tourism as a whole. We fear this may become an annual event.

“We see no reason for the sum awarded to senior staff to have been different from the rest of staff. As you will understand, the more those at the top are paid, the more has to be earned by the college to cover their increases.”

All college staff, including Dr Watkins and the senior managers, received a pay increase of 3.2 per cent in October last year.

According to a college spokeswoman, proposals are in place for next year to award all staff with a 1.5 per cent increase, but to help with the college’s cost savings plans Dr Watkins and two other senior members of staff have requested that no salary increase be made to them this year.

A college spokeswoman said: “The principal does not receive any incremental or performance-related payments.

“Due to changes in the travel industry, demand for the travel and tourism course was insufficient, and Carshalton College was forced to close the course to new students last year.

“Four members of staff were affected – two were redeployed and there were two voluntary redundancies.

“The principal does not receive any incremental or performance-related payments. Carshalton College is in good financial health and it is important it remains so in order to meet the needs of the local, wider and business communities.

“Pay and conditions of senior post holders are reviewed on an annual basis by the Corporation’s Remuneration Committee and the full corporation has to endorse any recommendation for an increase before any changes can be made.”