How much? The University of Warwick releases its 2021/22 financial statements

The University recorded an underlying surplus of £85.1 million, before accounting for the revaluation of the University Superannuation pension Scheme (USS) resulted in a deficit of £93.2 million.

The revaluation of the USS led to changes to staff pensions which are a key issue in ongoing strikes at the University.

The University saw larger-than-expected levels of student recruitment, driven almost entirely by Warwick Business School and the Department of Economics. 55% of the University’s revenue of £777.9 million for Financial Year (FY) 2021/22 was made up of tuition fees, with 53% of said tuition fees being from overseas students despite making up only 32% of the overall student population. Overseas tuition fee income increased by £40.7 million while home and EU tuition fee income fell by £3.5 million. 

The importance of international students to the University’s ongoing financial sustainability is reflected by the inclusion of “failing to recruit and retain a strategically desirable number, quality, and diversity of students, particularly international students in a competitive and global market” as a key potential risk on the University’s radar. 

The overall staff-to-student ratio rose slightly, with student numbers increasing by 3.3% whilst the number of full-time equivalent staff rose by 1.2%. 

The financial statements also note plans for “substantial investment in Social Sciences, a new science quarter, and new student residences”, made possible by the £349.3 million in cash, cash equivalents, and asset investments held by the University. This is an increase of 31.7% from the previous financial year. 

Due to the high inflationary environment and high energy costs, combined with no increase in home undergraduate student tuition fees, it is essential that the University delivers a surplus each year to build up a cash buffer against risks

– The University of Warwick

Capital expenditure was £41.8 million, much lower than the previous five years when it hovered between £97.6 and £142.2 million. 

The base pay of Vice Chancellor Stuart Croft rose from £309,000 to £313,000 – an increase of 1.3%. His total pay package, including taxable benefits in kind, totals £372,000 – up 1.1% from £368,000 in FY 2020/21. As in previous years, the Vice Chancellor chose not to receive a performance bonus. The University’s Remuneration Committee concluded that had this been a normal year, Stuart Croft would have been eligible for a significant performance bonus based on the University’s performance in the relevant league tables. 

Total location-based carbon emissions by the University increased by 0.6% compared to FY 2020/21, mainly due to the return of staff and students to campus leading to increased electricity consumption. 

The size of the Students’ Union grant increased by 8.8% from £2.989 million.

The University of Warwick told The Boar: “Due to the high inflationary environment and high energy costs, combined with no increase in home undergraduate student tuition fees, it is essential that the University delivers a surplus each year to build up a cash buffer against risks.

“Our financial performance enabled us to make a further ‘Thank you’ payment to staff as an additional reward for their achievements in exceptional circumstances.

“We are also offering extra help to our staff on lower salary bands in the form of a cost-of-living payment of £550 to full time, eligible salaried employees on Grades 1a-5. The average pay increase since 31 July 2022 across our total staff population, including the Thank You payment, the announced Cost of Living payment and incremental progression, will be around 7%.”

Correction: A version of this article in The Boar’s printed newspaper does not feature the quote from the University of Warwick. Mistakenly, it was placed in another article in the same printed paper, concerning the cost-of-living crisis.