Ranked: UK universities with the scariest financial deficits by percentage of total income

We already knew the higher education sector is currently having a tough time but, even so, it’s still pretty terrifying to hear two fifths of UK universities are expected to have a deficit this year.

Although the Office for Students reported a bit of an improvement in the financial performance of universities in 2024-25, some institutions are struggling more than others.

The problem, it seems, is more to do with expenditure than income. Data published by Higher Education Statistics Agency (HESA) revealed combined income of higher education providers rose from £52.5 billion in 2023-24 to £53.9 billion in 2024-25, while the total expenditure rose from £43.4 billion to £53.1 billion.

The HESA data also shed light on which UK universities have the highest deficits in proportion to their total income. While the University of Nottingham made headlines recently for its reported £85 million deficit, you might be surprised to hear it doesn’t even make the top 10 when the shortfall is calculated proportionally.

While having the largest deficit does not necessarily indicate an institution is suffering the most (they may just have had more costs that particular year), it’s still interesting to see which ended up with the most notable ones last year. So here’s a list of the Universities UK members with the largest deficits (excluding pension adjustments) for the academic year 2024-25.

UK universities with the highest deficits as a percentage of total income (without pension adjustments)

Cardiff University, UK

10. University of Hull – 9.6 per cent

9. Cardiff University – 9.7 per cent

8. Queen’s University Belfast – 9.8 per cent

7. De Montfort University – 10.6 per cent

6. Swansea University – 11.8 per cent

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5. Bangor University – 12 per cent

4. University of Derby – 12.2 per cent

3. University of Bedfordshire – 17.5 per cent

2. Coventry University – 18.4 per cent

1. Lincoln Bishop University – 31.5 per cent

Responding to the data from both the Office for Students (OfS) and the Higher Education Statistics Authority (HESA) on higher education sector finances, Vivienne Stern MBE, Chief Executive of Universities UK said: “Through the skilled workforce and the innovations they produce, universities have a key role to play in the country’s future success, but this analysis illustrates how the financial situation facing our world-class institutions remains extremely challenging.

“Universities are working hard to ensure their long-term stability, making tough decisions to control costs and looking for ways to do more with less , and we are seeing many examples of major transformation. The decision to increase fees in England in line with inflation was the right thing to do to begin to address the challenge, and government should be congratulated for grasping the nettle, but the task is not yet complete.

“Indeed, changes to visa policy, the introduction of a tax on international students and increased pension and national insurance costs have added to the pressure. We also fear that DFE is about to cut grant funding to English universities to support the cost of wider teaching. They should not do that.

“Universities can be real drivers of economic renewal but if we want a world-class system which delivers for students, employers and communities across the country, we need a serious conversation how degrees are funded and whether the government’s share matches the value universities deliver for wider society.”

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