Universities' income falls as Hefce warns of further hit

By John Morgan. The English higher education sector last year saw its first real-terms cut in income since records began almost 20 years ago, while institutional finances will take a further hit this year because of the fall in student numbers under higher fees. Those are among the findings of the Higher Education Funding Council for England’s annual overview, Financial health of the higher education sector, which covers 2011-12 university accounts and forecasts for 2012-13 - the first year of £9,000 fees.
The release of the figures comes amid negotiations between the Treasury and the Department for Business Innovation and Skills on the level of cuts to be made in the 2015-16 spending review, with some in government suggesting universities are perceived as being “awash with cash”. The sector’s income rose to £23.3 billion in 2011-12, a below inflation rise of 1.5 per cent on the previous year. Hefce’s accompanying press statement describes this as “the first real-terms reduction in total income” since records for the sector were first collected in 1994-95. Read more...