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09:30 hours
Thursday 6
March 2014

Finance Plus

Income of Higher Education Institutions £29.1 billion in 2012/13

HESA publication 'HE Finance Plus 2012/13' released today


HE Finance Plus 2012/13
shows that the total income of higher education institutions (HEIs) in 2012/13 was £29.1 billion. Funding bodies provided £7.0 billion of this income, while tuition fees and education contracts contributed £11.7 billion.

The chart below shows the proportions of total income of UK higher education institutions by source in 2012/13:

Pie chart showing income of UK HEIs by source in 2012/13

2012/13 was the first year following changes to tuition fee arrangements. The relative contribution to total income of fees and funding body grants changed as a result. The chart below shows the share of income contributed by each source for the last five years:

Stacked bar chart showing income of UK HEIs by source in 2012/13

Details

The different sources of income in 2012/13 are further broken down in Table 1 below. Income from home and EU domicile students’ course fees was £7.4 billion – 25.3% of the total income for UK HEIs. Non-EU students’ course fees totalled £3.5 billion accounting for 12.1% of total income.

Table 1 - Sources of income for UK HEIs 2012/13 (£ thousands)
Source Income % of total income
Funding body grants 7,031,856 24.1%
   Recurrent (teaching) 4,154,120 14.3%
   Recurrent (research) 1,944,369 6.7%
   Recurrent - other (including special funding) 455,109 1.6%
   Release of deferred capital grants - buildings 289,249 1.0%
   Release of deferred capital grants - equipment 112,104 0.4%
   Grants for FE provision (not applicable to SFC) 76,905 0.3%
Tuition fees and education contracts 11,655,756 40.0%
   Home and EU domicile students course fees 7,362,932 25.3%
   Non-EU domicile students course fees 3,532,514 12.1%
   Non-credit-bearing course fees 450,786 1.5%
   FE course fees 57,062 0.2%
   Research training support grants 252,462 0.9%
Research grants and contracts 4,768,549 16.4%
   BIS Research Councils, The Royal Society, British Academy and The Royal Society of Edinburgh 1,540,056 5.3%
   UK-based charities 976,017 3.3%
   UK central government bodies/local authorities, health and hospital authorities 846,295 2.9%
   UK industry, commerce and public corporations 292,244 1.0%
   EU Sources 690,285 2.4%
   Non-EU sources 377,315 1.3%
   Other sources 46,337 0.2%
Other income 5,398,125 18.5%
   Other services rendered 1,700,694 5.8%
   Residences and catering operations (including conferences) 1,710,350 5.9%
   Grants from local authorities 11,418 0.0%
   Income from health and hospital authorities (excluding teaching contracts for student provision) 356,215 1.2%
   Release of deferred capital grants 114,901 0.4%
   Income from intellectual property rights 55,495 0.2%
   Other operating income 1,449,052 5.0%
Endowment and investment income 289,583 1.0%
Total income* 29,143,869 100.0%
Source: HESA HE Finance Plus 2012/13. An equivalent table for 2011/12 can be found at www.hesa.ac.uk/pr188
* Includes income from joint ventures.

Table 2 shows the changes in income from the major sources from the previous year. Tuition fee income increased by 20.5% while income from funding body grants fell by 14.9%.

Table 2 - Sources of income for UK HEIs 2011/12 and 2012/13 (£ thousands)
Source 2011/12 2012/13 % change
Funding body grants 8,267,471 7,031,856 -14.9%
Tuition fees and education contracts 9,674,107 11,655,756 20.5%
Research grants and contracts 4,508,835 4,768,549 5.8%
Other income 5,168,616 5,398,125 4.4%
Endowment and investment income 273,861 289,583 5.7%
Total income* 27,892,890 29,143,869 4.5%
Source: HESA HE Finance Plus 2012/13.    See Annex below for England, Wales, Scotland and Northern Ireland figures
* Includes income from joint ventures.

Expenditure £27.9 billion

Total expenditure of UK HEIs in 2012/13 was £27.9 billion. Staff costs contributed £15.4 billion towards this total. The chart below shows the total expenditure of UK higher education institutions by type in 2012/13:

Pie chart showing expenditure of UK HEIs by type in 2012/13

Table 3 shows the changes in expenditure for the major types from the previous year.

Table 3 - Expenditure by type for UK HEIs 2011/12 and 2012/13 (£ thousands)
Type
2011/12 2012/13 % change
Staff costs 14,804,992 15,407,795 4.1%
Other operating expenses 9,935,272 10,489,655 5.6%
Depreciation 1,542,885 1,618,103 4.9%
Interest and other finance costs 381,529 402,378 5.5%
Total expenditure 26,664,678 27,917,931 4.7%
Source: HESA HE Finance Plus 2012/13.    See Annex below for England, Wales, Scotland and Northern Ireland figures

HE Finance Plus 2012/13

HE Finance Plus 2012/13 includes finance data broken down to institutional level including tuition fees and education contracts, balance sheets, cash flow, capital expenditure, financial profiles and more. HE Finance Plus 2012/13 is available to purchase and instantly download from http://www.hesa.ac.uk/pubs/financeplus .

The related HESA product, Finances of Higher Education Institutions, containing a subset of the HESA finance collection will be published in May. Results of the 2012/13 HE Business and Community Interaction Survey will be published on 20 March. A full schedule of all HESA releases for 2014 can be found here: http://www.hesa.ac.uk/pubs_schedule


Notes for Editors

  1. Press enquiries should be directed to:

    Simon Kemp
    HESA Press Officer
    01242 211120
    pressoffice@hesa.ac.uk
    95 Promenade, Cheltenham, GL50 1HZ.

  2. Data in the tables represent cash figures and are not adjusted for inflation.
  3. Where comparisons are made between the latest academic financial year (2012/13) and previous years, the previous years' figures are those reported in the re-stated financial statements.
  4. Values in Charts are shown rounded to the nearest £0.1 billion. The sum of these values may not match the total values given in the text. Percentages in all Tables and Charts are shown rounded to one decimal place and may not sum to 100%.
  5. HESA Finance data is collected from all publicly funded Higher Education Institutions (HEIs) in the UK, plus the University of Buckingham, which is a non-publicly-funded institution. The 2012/13 data covers 161 HEIs (129 in England, 10 in Wales, 18 in Scotland and 4 in Northern Ireland).
  6. The data in this release relates to all UK HE institutions. Figures for the individual nations of the UK are available in the Annex below: England; Wales; Scotland; Northern Ireland; Non-EU domicile students' course fees.
  7. Equivalent press releases for2011/12, 2010/11 and 2009/10 can be found at www.hesa.ac.uk/pr188, www.hesa.ac.uk/pr174 and www.hesa.ac.uk/pr157.
  8. HESA cannot accept responsibility for any inferences or conclusions derived from the data by third parties.
  9. Definitions of the terms used in this press release can be found on-line here: www.hesa.ac.uk/intros/financesdefs1112.

 

Annex - equivalent tables for England, Wales, Scotland and Northern Ireland

England

Sources of income for HEIs in England 2011/12 and 2012/13 (£ thousands)
  2011/12 2012/13 % change
Funding body grants 6,686,536 5,505,127 -17.7%
Tuition fees and education contracts 8,376,749 10,160,277 21.3%
Research grants and contracts 3,647,005 3,872,851 6.2%
Other income 4,333,995 4,568,530 5.4%
Endowment and investment income 224,959 236,878 5.3%
Total income* 23,269,244 24,343,663 4.6%
Source: HESA HE Finance Plus 2012/13
* Includes income from joint ventures.

Expenditure by type for HEIs in England 2011/12 and 2012/13 (£thousands)
  2011/12 2012/13 % change
Staff costs 12,254,098 12,766,492 4.2%
Other operating expenses 8,304,404 8,775,857 5.7%
Depreciation 1,289,702 1,362,027 5.6%
Interest and other finance costs 342,422 356,720 4.2%
Total expenditure 22,190,626 23,261,096 4.8%
Source: HESA HE Finance Plus 2012/13

Wales

Sources of income for HEIs in Wales 2011/12 and 2012/13 (£ thousands)
  2011/12 2012/13 % change
Funding body grants 395,058 268,500 -32.0%
Tuition fees and education contracts 432,178 559,823 29.5%
Research grants and contracts 169,962 175,151 3.1%
Other income 269,686 262,387 -2.7%
Endowment and investment income 8,455 8,565 1.3%
Total income* 1,275,339 1,274,426 -0.1%
Source: HESA HE Finance Plus 2012/13
* Includes income from joint ventures.

Expenditure by type for HEIs in Wales 2011/12 and 2012/13 (£ thousands)
  2011/12 2012/13 % change
Staff costs 723,834 733,412 1.3%
Other operating expenses 446,622 449,355 0.6%
Depreciation 60,734 62,839 3.5%
Interest and other finance costs 13,071 11,858 -9.3%
Total expenditure 1,244,261 1,257,464 1.1%
Source: HESA HE Finance Plus 2012/13

Scotland

Sources of income for HEIs in Scotland 2011/12 and 2012/13 (£ thousands)
  2011/12 2012/13 % change
Funding body grants 985,146 1,067,354 8.3%
Tuition fees and education contracts 722,198 786,586 8.9%
Research grants and contracts 609,886 639,225 4.8%
Other income 492,510 492,599 0.0%
Endowment and investment income 32,672 37,119 13.6%
Total income* 2,842,412 3,022,883 6.3%
Source: HESA HE Finance Plus 2012/13
* Includes income from joint ventures.

Expenditure by type for HEIs in Scotland 2011/12 and 2012/13 (£ thousands)
  2011/12 2012/13 % change
Staff costs 1,545,597 1,624,561 5.1%
Other operating expenses 1,019,516 1,104,962 8.4%
Depreciation 164,565 164,641 0.0%
Interest and other finance costs 21,773 28,355 30.2%
Total expenditure 2,751,451 2,922,519 6.2%
Source: HESA HE Finance Plus 2012/13

Northern Ireland

Sources of income for HEIs in Northern Ireland 2011/12 and 2012/13 (£ thousands)
  2011/12 2012/13 % change
Funding body grants 200,731 190,875 -4.9%
Tuition fees and education contracts 142,982 149,070 4.3%
Research grants and contracts 81,982 81,322 -0.8%
Other income 72,425 74,609 3.0%
Endowment and investment income 7,775 7,021 -9.7%
Total income* 505,895 502,897 -0.6%
Source: HESA HE Finance Plus 2012/13
* Includes income from joint ventures.

Expenditure by type for HEIs in Northern Ireland 2011/12 and 2012/13 (£ thousands)
  2011/12 2012/13 % change
Staff costs 281,463 283,330 0.7%
Other operating expenses 164,730 159,481 -3.2%
Depreciation 27,884 28,596 2.6%
Interest and other finance costs 4,263 5,445 27.7%
Total expenditure 478,340 476,852 -0.3%
Source: HESA HE Finance Plus 2012/13

Non-EU domicile students’ course fees

Income from non-EU domicile students course fees by location of institution 2012/13
Location of institution Non-EU domicile students course fees (£ thousands) % of total income
England 3,006,658 12.4%
Wales 135,829 10.7%
Scotland 373,618 12.4%
Northern Ireland 16,409 3.3%
United Kingdom 3,532,514 12.1%
Source: HESA HE Finance Plus 2012/13. An equivalent table for 2011/12 can be found at www.hesa.ac.uk/pr188