University of Manchester income hits record £1.3bn

The University of Manchester said its total income rose 10.5% to a record high of £1.344 billion in the year to July 31, 2023, with income from tuition fees up 3.4% to £659.9 million.

The university said income from funding bodies increased by £47.7 million to £184.2 million, with research income steady at £271.1 million. “Other income” increased £35.1 million to £193.5 million.

Total comprehensive income for the year resulted in a surplus of £77.9 million compared to a deficit of £63.6 million in the prior year.

Total expenditure was £1.237 billion, an increase of £140.4 million or 12.8%.

Chief financial officer Carol Prokopyszyn wrote: “The strong demand for student places at Manchester, combined with the continued excellence in world-leading research has led to year of record levels of income at £1.3 billion.

“Despite cost pressures, the University has managed its finances to continue to generate positive cash-flows for reinvestment to deliver the strategic objectives.

“The University’s total adjusted operating surplus for the year (excluding changes to the USS deficit recovery plan) is £106.8m, 7.9% of total income, a reduction of £12.9m on the previous year.

“Total comprehensive income for the year is a surplus of £77.9m (2022: deficit £63.6m) after net actuarial losses of £29.4m (2022: gain £39.4m) from the University of Manchester Superannuation Scheme (UMSS) and Greater Manchester Pension Fund (GMPF) pension schemes.

“The actuarial loss can swing from a significant loss to a gain dependent upon factors outside the University’s control …

“The prior year expenditure included a one-off non-cash charge of £219.5m in relation to the USS (Universities Superannuation Scheme) deficit adjustment triggered by the agreement of a revised deficit recovery plan following the finalisation of the 2020 actuarial valuation.

“There is no USS adjustment this year, however the 2023 USS valuation outcome is in negotiation at sector level and anticipated to lead to a significant reduction in the deficit provision to be booked in 2023/24.

“Excluding this one-off charge, total expenditure for 2022/23 of £1,237.9m has increased by £140.4m or 12.8%.

“General inflation and the impact of the cost-of-living accounts for much of this increase. In the current year, the University has made significant one-off cost of living payments totalling £18.1m to support both its students and staff.

“The sector cost of living pay award was higher than the previous year and in addition 2% of the 5% 2023/24 sector pay award was paid early from February 2023. The approximate impact on staff costs of pay inflation is £19m increase from the previous year.”