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HEFCE closed at the end of March 2018. The information on this website is historical and is no longer maintained.

Many of HEFCE's functions will be continued by the Office for Students, the new regulator of higher education in England, and Research England, the new council within UK Research and Innovation.

The HEFCE domain - - will continue to function until September 2018. At this point we will close the site entirely and all its information will only be available from the National Web Archive.


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Unrestricted income and expenditure reserves fell slightly from £24.1 billion at 31 July 2015 to £23.9 billion at 31 July 2016, once pension liabilities recorded on the balance sheet have been deducted. Pension schemes that are not recognised on the balance sheet are not included, such as the Teachers’ Pension Scheme (TPS), and yet these pension costs are still born by the employers.

This means that, at a sector level, unrestricted reserves are equivalent to 82.2 per cent of total income. Unrestricted reserves represent the value of the institution’s accumulated funds through surpluses reported in its income statement, on whose use there are no restrictions. They can be used as a proxy for the overall value of an institution. Institutions may also hold restricted reserves, such as endowments and donations, which can only be used for specific purposes.

The aggregate sector position masks a significant spread of financial strength and a concentration of large unrestricted reserves in a small number of institutions, with 10 institutions reporting half of the sector’s unrestricted reserve balance at 31 July 2016.

Unrestricted reserves as a percentage of total income also varied considerably at an institutional level. As at 31 July 2016, unrestricted reserves ranged between -38 and 411 per cent of total income.


Pension liabilities increased by £2.4 billion in 2015-16, to reach £9.5 billion at 31 July 2016, which was equivalent to a rise of 33 per cent.

These liabilities look set to rise further following outcomes of triennial reviews of two of the sector’s major pension schemes, the Universities Superannuation Scheme and Local Government Pension Schemes.

Increasing deficits are likely to require additional funding in the form of higher contributions, adding to the financial pressures on many institutions that participate in these schemes. 

Page last updated 21 June 2017