UK universities and higher education institutions have seen increases in revenues, particularly through tuition fees and education contracts. This report examines the collective revenue, expenditure and the gains/losses for higher education in the UK. 

• As of the 2021/22 academic year, UK universities and higher education institutions generated £46.85 billion in revenue.
• Total revenue has increased by 20.81% since the £38.78 billion generated in 2017/18.
• Tuition fees and education contracts generated £24.60 billion (52.51% of the total revenue).
• UK universities and higher education institutions had expenses of £50.89 billion. 
• Total expenditure has increased by 34.95% since the £37.71 billion spent in 2017/18.
• Staff costs amounted to £30.57 billion (60.07% of the overall spend).
• Other operating expenses amounted to £16.79 billion (32.99% of the overall spend).
• UK universities and higher education institutions suffered net operating asset losses of £4.04 billion. 
• This was the highest loss the industry suffered over the 5-year period.

Total UK university and higher education revenue by year

• As of the 2021/22 academic year, UK universities and higher education institutions generated £46.85 billion in revenue.
• Total revenue has increased by 20.81% since the £38.78 billion generated in 2017/18.
• £24.60 billion was generated through tuition fees and education contracts.
• £8.31 billion was generated through other income.
• £6.98 billion was generated through research grants and contracts.
• £5.74 billion was generated through funding body grants.
• Investment income and donations & endowments generated the remaining £1.22 billion.
• Tuition fees and education contracts made up 52.51% of the total revenue.
• Other income made up 17.74% of the total revenue.

Revenue type	2017/18	2018/19	2019/20	2020/21*	2021/22*	Change
Tuition fees and education contracts	£19.05 billion	£20.54 billion	£21.94 billion	£23.51 billion	£24.60 billion	+22.56%
Research grants and contracts	£6.22 billion	£6.58 billion	£6.32 billion	£6.57 billion	£6.98 billion	+10.85%
Funding body grants	£5.13 billion	£5.35 billion	£5.50 billion	£6.02 billion	£5.74 billion	+10.71%
Donations and endowments	£0.75 billion	£0.93 billion	£0.93 billion	£0.84 billion	£0.88 billion	+14.12%
Investment income	£0.26 billion	£0.40 billion	£0.38 billion	£0.33 billion	£0.34 billion	+24.85%
Other income	£7.37 billion	£8.03 billion	£7.43 billion	£6.84 billion	£8.31 billion	+11.28%
Total	£38.78 billion	£41.83 billion	£42.49 billion	£44.11 billion	£46.85 billion	+20.81%

A graph is given below to show total UK university and higher education revenue by year:

Total UK university and higher education expenditure by year

• As of the 2021/22 academic year, UK universities and higher education institutions had expenses of £50.89 billion. 
• Total expenditure has increased by 34.95% since the £37.71 billion spent in 2017/18.
• £30.57 billion was spent on staff costs.
• £16.79 billion was spent on other operating expenses.
• Restructuring costs, depreciation & amortisation and interest & other finance costs made up the remaining spend (£3.53 billion).
• Staff costs amounted to 60.07% of the overall spend.
• Other operating expenses amounted to 32.99% of the overall spend.

Expense type	2017/18	2018/19	2019/20	2020/21*	2021/22*	Change
Staff costs	£20.27 billion	£26.51 billion	£20.06 billion	£23.67 billion	£30.57 billion	+33.71%
Depreciation and amortisation	£2.49 billion	£2.71 billion	£2.82 billion	£2.97 billion	£2.91 billion	+14.27%
Interest and other finance costs	£0.76 billion	£0.86 billion	£0.97 billion	£0.80 billion	£0.54 billion	-41.67%
Restructuring costs	£0.14 billion	£0.13 billion	£0.16 billion	£0.10 billion	£0.08 billion	-81.69%
Other operating expenses	£14.05 billion	£15.11 billion	£14.94 billion	£14.92 billion	£16.79 billion	+16.35%
Total	£37.71 billion	£45.32 billion	£38.95 billion	£42.46 billion	£50.89 billion	+34.95%

A graph is given below to show total UK university and higher expenditure by year:

Total UK university and higher education net operating assets by year

• As of the 2021/22 academic year, UK universities and higher education institutions suffered a net operating asset loss of £4.04 billion. 
• This was the highest loss suffered over the 5-year period.
• 2018/19 and 2021/22 saw huge increases in staff costs which contributed greatly to annual losses during those years.
• Highest net operating asset increases were made during the 2019/20 academic year (£3.54 billion).
• On average, UK universities and higher education institutions suffered losses of £0.25 billion annually during the period.

Academic year	Total net operating assets
2017/18	+ £1.07 billion
2018/19	– £3.49 billion
2019/20	+ £3.54 billion
2020/21*	+ £1.65 billion
2021/22*	– £4.04 billion

A graph is given below to show total UK university and higher education net operating assets by year: