¹û¶³´«Ã½

1. Other income

The main areas within the 'Other Income' section of the ¹û¶³´«Ã½ Income chart above are as follows:

2. Included in other operating expenses

Analysis of expenditure by activity

The ¹û¶³´«Ã½’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 ¹û¶³´«Ã½ receives comes from tuition fees. The information above explains where the ¹û¶³´«Ã½ of Worcester receives money from and analyses the ¹û¶³´«Ã½’s expenditure. The figures relate to the 2024/25 financial year (1st August 2024 – 31st July 2025).  Firstly though, we will address some of the frequently asked questions that are posed about the ¹û¶³´«Ã½’s income and expenditure.

What proportion of the ¹û¶³´«Ã½’s income derives from tuition fees?

The ¹û¶³´«Ã½’s total income in 2024/25 was £98.1m. Of this, £74.6m (76%) came in the form of tuition fees & education contracts along with £7.3m (7%) from funding body grants.

Does the ¹û¶³´«Ã½ make a profit?

The ¹û¶³´«Ã½ 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 for a few years, with 2024/25 seeing a return to a small surplus. The deficit (before other gains and losses) reduced from £(2.2)m in 2023/24 to a small surplus of £17k in 2024/25. This was a result of a variety of factors such as: increase in tuition fee income along with a small increase in research grants. Income from residences, catering and conferencing, reduced slightly along with funding body grants. Savings on expenditure were achieved partly as s result of the voluntary severance schemes which meant staff costs did not rise as much as they would have done, but also lower interest costs on the loans due to a large capital repayment. Procurement savings were also achieved on day to day expenditure. The fluctuations between years is due to elements of non-recurrent income, differences relating to the movement of pension liabilities, and over the last few years fluctuations in inflation.

Accounts 2024/25

Income: £98,092K
Expenditure: £98,075K
Surplus: £17K

So, from where else does the ¹û¶³´«Ã½ receive its income?

The ¹û¶³´«Ã½ receives around £7m 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 2024/25 this amounted to £13.6m.  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 ¹û¶³´«Ã½ spend its money on?

Investing in academic staff and various academic institutes is vitally important but it accounts for only part of the ¹û¶³´«Ã½’s investment. The ¹û¶³´«Ã½ is very much a community, employing over 2,000 individual staff and approx. 400 student employees and teaching more than 10,000 students. Like any community, the ¹û¶³´«Ã½ needs support services – library, laboratories, specialist teaching facilities, computers and IT services, buildings, utilities, and of course a network of people to keep the ¹û¶³´«Ã½ going.  Every effort is made to ensure that the ¹û¶³´«Ã½ 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 ¹û¶³´«Ã½ achieves Value for Money in how it uses its income from tuition fees and other sources.

An efficient and financially well-managed institution

The ¹û¶³´«Ã½ of Worcester is recognised by the Office for Students as an efficient and financially well managed institution. The ¹û¶³´«Ã½ spent £98m on running the ¹û¶³´«Ã½ with a breakdown below. Please note the ¹û¶³´«Ã½ paid £2.1m in interest in 2024/25 on loans which have been taken out in the last 20 years to fund a large proportion of the costs of the City ¹û¶³´«Ã½, the Arena, the Riverside ¹û¶³´«Ã½, 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 ¹û¶³´«Ã½ has been investing in improving the campus and therefore the student experience then?

Very much so. The ¹û¶³´«Ã½ has invested over £50m in capital improvements and new site acquisitions over the last 5 years. The level of capital investment during the year has increased from that of the previous year, which was due to the expansion of the Severn ¹û¶³´«Ã½, mainly the construction of the new Health and Wellbeing Teaching building (The Dukes Building), which opened in March 2025.

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

The ¹û¶³´«Ã½ 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 ¹û¶³´«Ã½ is a clean and safe environment in which to work and study – cleaning staff, maintenance staff, security staff, etc.  In addition, £0.9m 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 ¹û¶³´«Ã½ 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 ¹û¶³´«Ã½ 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