In the five months since I’ve been at Sussex, I’ve become very aware that students are keen to understand more about how their fees are spent. I appreciate that going to university will be one of the most carefully considered investments that you will make.
I want to take this opportunity to tell you more about the University’s finances – and update you on some changes. When student fees rose from just over £3,000 to £9,000 in 2012, universities lost almost all support from government for teaching, which means the way the University is funded has changed considerably – so it’s important we have an open conversation about this.
This graphic shows you how the University of Sussex is able to balance its books. You’ll notice there is not much difference between the money the University receives and the amount that’s spent. This is unusual for most organisations – where normally a financial model would be based around much wider margins between income and expenditure.
Click here to view a large version of the graphic
How we spend your fees
The University is largely only able to exist as an education provider through receiving student fees. The graphic shows how fees make up the majority of our income. You’ll notice how our expenditure on academic schools (such as school staff salaries, teaching resources and equipment), academic services (such as examinations, the library and IT), and the bursaries and scholarships we offer roughly equate to the income we receive from your fees.
Through additional income streams, such as funding body grants and offering consultancy services, we are able to provide so many of the other vital services that keep your university running. This includes the management of residences, the Student Life Centre, cleaners, porters, catering and sports facilities for example, as well as other university departments such as finance and academic registry.
We are also obligated to set aside around £1,000 from each student’s annual fees to support activities which promote social mobility – giving access to education for those students who might come from a lower income family. This is something we care about enormously and in fact we set aside far more than is required. In 2017/18 we are committing in excess of £13m (up from around £8m this year) for schemes such as First Generation Scholars. Around 50% of Sussex undergraduate students benefit from this scheme.
Surplus – not profit
All universities are expected by the Government to make a surplus of at least 4% of turnover each year. This is not a ‘profit’ as, not only does the surplus provide a buffer in the event of unexpected changes, it is all reinvested in activities across the University.
At Sussex, we currently run at a 6% surplus, as we want to make sure the quality of your education is always protected. With the uncertainties that we face around Brexit, a potentially more restrictive approach to teaching international students and continued Government austerity, it is critically important that we are able to ensure that we can continue to employ world-leading staff and reinvest in the campus, such as refurbishing and developing buildings and facilities. Some good examples of this include the Fulton and Jubilee buildings, which were built over the last few years, as well as the soon-to-be-developed Students’ Union building, which will have a new bar/cafe, rooms for societies and many more social facilities for students.
What this means for you
Since 2012, the fees for UK students at Sussex have been set at £9,000. Since then, our everyday costs have risen with inflation. Increased costs of utilities and rates (and the increased charges from contractors) means the fees we now receive are worth the equivalent of £8,275 in real terms. As an organisation that manages its finances on relatively tight margins, we are simply not able to operate in the way we have been without making some adjustments – to all our funding streams.
That’s why from the 2017/18 academic year we will need all new and current students to contribute slightly more per year, with fees rising in line with inflation to £9,250. This isn’t a decision the University took lightly, although you should feel reassured that at today’s rates the additional cost to your Student Loan Company payments will range from £4.00 per year (if you earn less than £21,000 when you graduate) to £11.00 per year (if you earn over £41,000).
I want us to continue to talk about how we spend your fees and how the University is run. This is your university and your education – and it’s ultimately my responsibility to ensure that you are getting the best experience for the investment you have made.
On that basis, I’m planning to hold an open session with students on 20 February at the Students’ Union – and am happy to answer any questions you may have. We’ll share more information on that session over the next few days. In the meantime, if you have any questions today, please direct them to the Internal Communications team (internalcomms@sussex.ac.uk) and we’ll get back to you.
With best wishes
Adam Tickell
Vice-Chancellor