13-05-2025
How is crisis-hit UHI Perth College funded?
Claims that UHI Perth College is in a state of chaos led to questions about exactly how the institution is funded – and what it means for the future of the institution.
We already know managers are trying to deal with a £2 million deficit, and to do that, it was even suggested degrees could be scrapped.
The institution set savings targets of £3.2m last year.
On Monday, in an interview with The Courier, its former finance chief says he warned bosses it was at risk of closure without huge cuts.
Gavin Stevenson – who resigned on April 18 – told us: 'The financial position is perilous.'
Here's a closer look at where UHI Perth College, part of the University of Highlands and Islands, gets its money.
The majority of UHI Perth College's funding comes directly from government grants.
In its statement of income for July 2023 the college says it received over £18.4 million from funding grants.
Of this, over £8m was provided directly to the college for further education students. An additional £7.8m was received by Perth College as its share of the total grant awarded to the University of the Highlands and Islands.
Further funding was also provided for capital projects – a total of £300,000 – as well as cash for childcare provision.
The next largest source of income for Perth College in 2022-23 was broadly defined as 'other income' – which totalled just over £4 million in total.
The financial statements indicate this included just over £1m in revenue from catering and residences.
A total of £1.5m came from 'income generating activities' – this is likely to include events, conferences and other commercial activities.
The remaining £1.4m in this category is listed only as 'other income' – but the exact sources of this are not defined. It is likely to include donations and other small amounts of income.
The third largest source of income for UHI Perth College are tuition fees and education contracts, accounting for some £3.64m.
While most Scottish students do not pay for their college and university education, some will if they have already studied and used up their 'allowance'.
Of the total, in 2022-23 around £2.67m came from charging students from England, Wales and Northern Ireland tuition fees.
This includes degree courses.
International students can also be charged fees. In 2024-25, international students studying a full-time undergraduate degree can expect to pay over £15,000 in tuition for a science course.
The college also earned over £900,000 from its contracts with Skills Development Scotland.
The smallest proportion of UHI Perth College's income came from research grants – around £500,000 in 2022-23.
The institution is largely grant funded, which is influenced by student numbers.
In the financial year ending July 2023 – the most recent data available – the college had a total revenue of £26.59 million.
Staff costs represented the biggest outlay that year.
The college spent over £21.3m on salaries, social security and pension contributions for its 354 staff members.
Perth College gained university status as part of the Highlands and Islands group in 2011.
