Income and expenditure

1. Other income

The main areas within the 'Other Income' section of the University Income chart above are as follows:

2. Included in other operating expenses

Analysis of expenditure by activity

The University’s Finances – How Do My Fees Fit In?

All universities are now encouraged to explain as transparently as possible to students both the sources of their income and how they spend their money. This is especially important now that a very large proportion of income a University receives comes from tuition fees. The information above explains where the University of Worcester receives money from and analyses the University’s expenditure. The figures relate to the 2023/24 financial year (1st August 2023 – 31st July 2024).  Firstly though, we will address some of the frequently asked questions that are posed about the University’s income and expenditure.

What proportion of the University’s income derives from tuition fees?

The University’s total income in 2023/24 was £96.9m. Of this, £72m (74%) came in the form of tuition fees & education contracts along with £8.1m (8%) from funding body grants.

Does the University make a profit?

The University is not a private or limited company and has no shareholders, only stakeholders, which includes our students. Universities are expected to make a surplus, sufficient to allow them to invest in improving facilities, new buildings etc.  2021/22 was the first year in many, where the level of surplus (before other gains and losses) reached a substantial deficit position. Deficit positions continued into 2022/23 and again in 2023/24, albeit slowly reducing. The deficit in 2023/24, was not unexpected having been previously budgeted and forecast. The deficit (before other gains and losses) reduced from £(3.2)m in 2022/23 to £(2.2)m in 2023/24. This was a result of a variety of factors such as: increase in funding body grants and also an increase in investment income. Income from residences, catering and conferencing, also increased slightly. Overall tuition fee income was consistent with the previous year, which was disappointing as no growth was seen. The continuing freezing of the UK tuition fees, that form the majority of the University’s income, combined with ever increasing inflationary cost pressures results in the University’s finances becoming increasingly stretched. The fluctuations between years is due to elements of non-recurrent income, differences relating to the movement of pension liabilities, and more recently the on-going impacts of the pandemic, and fluctuations in inflation.

Accounts 2023/24

Income: £96,860K
Expenditure: £99,010K
Deficit: £(2,150)K

So, from where else does the University receive its income?

The University still receives around £8m in the form of funding body grants – to support expenditure on widening access and participation and additional funding for high cost subjects. Other important sources of income include research grants and contracts and a large sum which the accounts describe as “Other Income” – in 2023/24 this amounted to £13.9m.  Over 40% of this comes from student accommodation, but some of this is offset by operating expenses (see below); any surplus from the leasing of student accommodation is used to fund the on-going programme of improvement and maintenance of halls of residence.

So, what does the University spend its money on?

Investing in academic staff and various academic institutes is vitally important but it accounts for only part of the University’s investment. The University is very much a community, employing around 1,800 individual staff and approx. 600 student employees and teaching more than 10,000 students. Like any community, the University needs support services – library, laboratories, specialist teaching facilities, computers and IT services, buildings, utilities, and of course a network of people to keep the University going.  Every effort is made to ensure that the University achieves Value for Money in how it uses its income from tuition fees and other sources.

Value for money

Every effort is made to ensure that the University achieves Value for Money in how it uses its income from tuition fees and other sources.

An efficient and financially well-managed institution

The University of Worcester is recognised by the Office for Students as an efficient and financially well managed institution. The University spent £99m on running the University with a breakdown below. Please note the University paid £2.6m in interest in 2023/24 on loans which have been taken out in the last 15 years to fund a large proportion of the costs of the City Campus, the Arena, the Riverside Campus, new Halls of Residence, new Science Laboratories, The Hive etc., all of which have contributed to the overall quality of the student experience. 

So, the University has been investing in improving the campus and therefore the student experience then?

Very much so. The University has invested over £45m in capital improvements and new site acquisitions over the last 5 years. The level of capital investment during the year has decreased from that of the previous year, which was due to the previous year including the new Three Counties Medical School located in the Elizabeth Garrett Anderson building, which is now fully operational. Work relating to the new Health and Wellbeing Teaching building, at the Severn campus, is progressing well and it should be operational by March 2025.

That’s great, but what about spending on teaching and research?

The University spends approx. 60% of its income on staff costs, the overwhelming majority of which is on academic staff costs and costs relating to staff in services which relate directly to student support – Library, Information and Learning Services, Student Services, and Estates Staff who ensure that the University is a clean and safe environment in which to work and study – cleaning staff, maintenance staff, security staff, etc. In addition, £0.7m was spent on student bursaries and scholarships along with a grant of £0.6m paid to the Students Union.

So, my money is being well spent?

We think so. The University aims to give value for money to its students and to provide an experience which will allow students to flourish and to reach their full potential.  We will continue to invest in the University estate and in staff and facilities.

More details

Visit our Facts and Figures page to download Annual Accounts for recent years.

If you require any further information, please contact communications@worc.ac.uk