HESA publication HE Finance Plus 2013/14 released today
HE Finance Plus 2013/14 shows that the total income of higher education providers5 in 2013/14 was £30.7 billion. Funding bodies provided £6.1 billion of this income, while tuition fees and education contracts contributed £13.7 billion.
The chart below shows the proportions of total income of UK higher education providers by source in 2013/14:
2013/14 was the second year of the £9,000 undergraduate fee cap.6 The relative contribution of tuition fees to total income continued to grow, while funding body grants decreased in both relative and absolute terms. The chart below shows the share of income contributed by each source for the last six years:
Details
The different sources of income in 2013/14 are broken down further in Table 1 below. Income from home and EU domicile students’ course fees was £9.0 billion – 29.1% of the total income for UK HE providers. Non-EU students’ course fees totalled £3.9 billion accounting for 12.7% of total income.
Table 1 - Sources of income for UK HE providers 2013/14 (£ thousands)
Source
Income
% of total income
Funding body grants
6,079,892
19.8%
Recurrent (teaching)
3,187,055
10.4%
Recurrent (research)
1,960,868
6.4%
Recurrent - other (including special funding)
429,343
1.4%
Release of deferred capital grants - buildings
294,098
1.0%
Release of deferred capital grants - equipment
102,307
0.3%
Grants for FE provision7
106,221
0.3%
Tuition fees and education contracts
13,677,846
44.5%
Home and EU domicile students course fees
8,958,009
29.1%
Non-EU domicile students course fees
3,891,966
12.7%
Non-credit-bearing course fees
489,969
1.6%
FE course fees
50,278
0.2%
Research training support grants
287,624
0.9%
Research grants and contracts
5,083,991
16.5%
BIS Research Councils, The Royal Society, British Academy and The Royal Society of Edinburgh
1,665,878
5.4%
UK-based charities
994,759
3.2%
UK central government bodies/local authorities, health and hospital authorities
886,708
2.9%
UK industry, commerce and public corporations
312,992
1.0%
EU Sources
789,201
2.6%
Non-EU sources
378,082
1.2%
Other sources
56,371
0.2%
Other income
5,556,208
18.1%
Other services rendered
1,759,625
5.7%
Residences and catering operations (including conferences)
1,816,142
5.9%
Grants from local authorities
13,845
0.0%
Income from health and hospital authorities (excluding teaching contracts for student provision)
322,979
1.1%
Release of deferred capital grants
116,149
0.4%
Income from intellectual property rights
64,497
0.2%
Other operating income
1,462,971
4.8%
Endowment and investment income
340,441
1.1%
Total income*
30,738,378
100.0%
Source: HESA HE Finance Plus 2013/14. An equivalent table for 2012/13 can be found here.
* 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 17.3% while income from funding body grants fell by 13.9%.
Table 2 - Sources of income for UK HE providers 2012/13 and 2013/14 (£ thousands)
2012/13
2013/14
% change
Funding body grants
7,064,999
6,079,892
-13.9%
Tuition fees and education contracts
11,663,313
13,677,846
17.3%
Research grants and contracts
4,798,076
5,083,991
6.0%
Other income
5,385,729
5,556,208
3.2%
Endowment and investment income
289,984
340,441
17.4%
Total income*
29,202,101
30,738,378
5.3%
Source: HESA HE Finance Plus 2013/14
* Includes income from joint ventures.
Expenditure £29.4 billion
Total expenditure of UK higher education providers in 2013/14 was £29.4 billion. Staff costs contributed £16.3 billion towards this total. The chart below shows the total expenditure of UK higher education providers by type of expenditure in 2013/14:
Table 3 shows the changes in expenditure for the major types from the previous year. Total expenditure increased 5.1% between 2012/13 and 2013/14. Staff costs, which accounted for more than half of total expenditure, increased by 5.4%. Statistics on the number of staff employed at UK HE providers can be found here.
Table 3 - Expenditure by type for UK HE providers 2012/13 and 2013/14 (£ thousands)
2012/13
2013/14
% change
Staff costs
15,448,158
16,289,825
5.4%
Other operating expenses
10,504,863
10,962,068
4.4%
Depreciation
1,620,320
1,755,865
8.4%
Interest and other finance costs
402,637
398,418
-1.0%
Total expenditure
27,975,978
29,406,176
5.1%
Source: HESA HE Finance Plus 2013/14
HE Finance Plus 2013/14
HE Finance Plus 2013/14 includes finance data broken down to HE provider level including tuition fees and education contracts, balance sheets, cash flow, capital expenditure, financial profiles and more. HE Finance Plus 2013/14 is available to purchase and instantly download.
The related HESA product, Finances of Higher Education Providers, containing a subset of the HESA finance collection will be published in April. Results of the 2013/14 HE Business and Community Interaction Survey will be published on 31 March. A full schedule of all HESA releases for 2015 can be found here.
Data in the tables represent cash figures and are not adjusted for inflation.
Where comparisons are made between the latest academic financial year (2013/14) and previous years, the previous years' figures are those reported in the re-stated financial statements.
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%.
HESA Finance data is collected from all publicly funded higher education institutions (HEIs) in the UK, plus the University of Buckingham, which is a privately funded HE provider (collectively "higher education providers"). The 2013/14 data covers 161 HE providers (130 in England, 9 in Wales, 18 in Scotland and 4 in Northern Ireland).
Fees for undergraduate students from Northern Ireland or the EU (excl. England, Wales and Scotland) studying at HE providers in Northern Ireland are subject to a lower fee cap. Undergraduate students from Scotland or the EU (excl. England, Wales and Northern Ireland) do not pay tuition fees if studying at an HE provider in Scotland. The Welsh government pay part of the fees for undergraduate students from Wales studying at He providers in the UK.
Grant for FE provision are not applicable to the Scottish Funding Council.