Presentation on theme: "AUT 2005 - HE income1 Higher education income Stephen Court AUT senior research officer AUT LA Presidents’ briefing 7 July 2005."— Presentation transcript:
AUT HE income1 Higher education income Stephen Court AUT senior research officer AUT LA Presidents’ briefing 7 July 2005
AUT HE income2 UK HEI income (1) FC grant: teaching26% FC grant: research8% FC grant: recurrent special3% FC grant: capital1% FC grant: total39% Tuition fees & ed grants24%
AUT HE income3 UK HEI income (2) Research: research councils5% Research: charities4% Research: govt & EU3% Research: business & industry1.5% Total research grants & contracts16% Other inc: services - UK govt2%
AUT HE income4 UK HEI income (3) Other inc: services: business & indus1% Other inc: residences & catering6% Other inc: health & hospitals2% Other inc: other operating5.5% Total other inc20% Total endowment & investment1.5%
AUT HE income5 UK HEI income (4) FC grant: total39% Tuition fees & ed grants24% Total research grants & contracts16% Total other inc20% Total endowment & investment1.5%
AUT HE income6 Public sources of income as proportion of total UK HEI income Grand total HEI income Public: Funding Council grants * Public: tuition fees & contracts ** Public: research grants & contracts *** Public: other services # Public: other ~ Public: total Public as % Grand total £m £% UK16,8676,4282,0051, , % Source: HESA HE Finance Plus 2003/4; % calculations by AUT * Excludes FE provision ** Full-time Home & EU HE fees standard & non-standard; excludes part-time, non-EU overseas & non-credit-bearing *** OST Research Councils; UK central & local govt etc; EU sources # KT Partnerships; UK cent & loc govt; EU ~ local govt; health; deferred capital grants
AUT HE income7 UK HEI expenditure Staff costs: academic33% Staff costs: other26% Other operating expenses (academic, research, facilities, services, residences, fellowships, heat etc, books, fellowships) 36% Depreciation5% Interest1%
AUT HE income8 Level of surplus The operating surplus for UK HEIs remained at a very similar level in and , at around 1.5% of income. The historical cost surplus for UK HEIs in increased from 2.5% to 3.2% of income.
AUT HE income9 Total incomeOperating surplus Operating surplus as % of income 2002/032003/042002/032003/042002/032003/04 £m % Total UK15,69116, % Source: HESA HE Finance Plus 2003/04; percentage calculations by AUT
AUT HE income10 Historical cost surplus Historical cost surplus as % of income 2002/032003/042002/032003/04 £m % Total UK %3.1% Source: HESA HE Finance Plus 2003/04; percentage calculations by AUT
AUT HE income11 HEIs in deficit In 2004, out of 170 HEIs, the proportion with an operating deficit in the UK was 24%. The largest deficit was nearly £9m at Cambridge, followed by Aberdeen (£6.7m), Leeds Metropolitan (£4.9m) and Glasgow (£4.4m).
AUT HE income12 HEFCE grant Grant allocations by the Higher Education Funding Council for England, plus fee income, for English HEIs increasing by 5.8% in
AUT HE income13 DfES grant to HEFCE & TTA England standard fees (est. after ) England top-up fees (est.) England grant & fees total (est. after ) £m change %£m change %£m change % , , ,7986.9%9429.5% 6,7407.3% ,1165.5%1,0329.5%435 7, % ,4285.1%1,1309.5%8928, % Source: DfES annual funding guidance letters to HEFCE; HEPI estimates; AUT estimates; HEFCE 2005/16; percentage calculations by AUT
AUT HE income14 English HEI forecasts The forecasts of HEIs* in England for increase in grant and fee levels are considerably lower. * (made in June/July 2004 before the outcome of the 2004 Spending Review, and not including the impact of variable fees from 2006) HEIs are forecasting a 5.6% increase in staff costs in , followed by 4.7% in and 4.4% in
AUT HE income15 England HEI forecast: total income from FC grants & fees England HEI forecast: total income England HEI forecast expenditure on staff costs £mchange %£mchange %£mchange % ,29514,4108, ,7034.4%15,0834.7%8,9265.6% ,0043.1%15,6984.1%9,3434.7% ,4104.1%16,3163.9%9,7574.4% HEFCE 2005/16; percentage calculations by AUT
AUT HE income16 Top-up fees in England England HEI forecast expenditure on staff costs Top-up income (minus bursaries)Staff exp + top-ups £mchange %£m change % , ,9265.6% ,3434.7%0.2689,6117.7% ,7574.4%0.610,3577.8%
AUT HE income17 e.g. Exeter Staff costs Staff costs at 4.7% inc Extra from top-ups Staff costs + 66% top- up income Staff costs + 66% top-up inc £000 Change % 80,38784,1654,68087,2548.5%
AUT HE income18 Funding for Wales Planned funding for HEFCW is to increase by 5.8% in considerably above forecast RPI inflation. Much lower levels of increase after 2006 – but these exclude any Supplementary Income Stream or top-up income for
AUT HE income19 HEFCW income £m% % % % Source: NAW Draft Budget Proposals Oct 04; percentage calculations by AUT
AUT HE income20 HEFCW grant The HEFCW recurrent allocations to Welsh HEIs are increasing overall by 4.95%. (HEFCW W05/12HE) The five main pre-92 HEIs are to receive an increase in HEFCW grant of between 3.3% and 7.8% - the latter being the increase for Lampeter.
AUT HE income21 HEFCW grant Change £m£% Aberystwyth Bangor Cardiff Lampeter Swansea Wales Total Source: HEFCW circular W05/12HE, Table 5
AUT HE income22 Funding for Scotland Funding for SHEFC for the period of the 2004 Spending Review is generous, rising by 8.3% in Total grant and fees for Scotland rising by 7.2% in , then 10.6% in and 6.5% in
AUT HE income23 Financial yearSHEFC grantTotal feesSHEFC grant plus total fees £m % change % % % Source: Spending plans in Building a Better Scotland; Fees: AUT estimate
AUT HE income24 SHEFC grant The grant allocations to Scottish HEIs by SHEFC (SHEFC HE/08/05), show a lower rate of increase for , of 3.4%. There are various reasons for this: the recurrent grants to institutions do not include all the funding SHEFC will allocate; the funding for SHEFC is in financial years, while the funding by SHEFC is in academic financial years. AUT(S) says there are various elements of funding made during the year which bring the level of funding increase to HEIs to ~6.5%.