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2025-07-31-accounts

HIGHER EDUCATION POLICY INSTITUTE

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2025

The MGroup Partnership

Chartered Certified Accountants

4 Witan Way Witney, Oxon OX28 6FF

Company Registration Number: 04503712

Charity Number: 1099645

HIGHER EDUCATION POLICY INSTITUTE

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2025

CONTENTS PAGES
Reference and administrative details 1 to 2
Trustees' report 3 to 7
Independent Examiner's report 8
Statement of financial activities and income and expenditure account 9
Balance sheet 10 to 11
Statement of cash flows 12
Notes to the financial statements 13 to 24

HIGHER EDUCATION POLICY INSTITUTE

REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 31 JULY 2025

TRUSTEES AND DIRECTORS

Sir David Bell

End of term reached at 21 September 2024 Professor Dame Helen Wallace

End of term reached at 21 September 2024 Professor Dame Sally Mapstone (Chair) Mary Curnock Cook CBE Professor Dame Julia Goodfellow Professor Sir Christopher Husbands Appointed 21 September 2024 Professor Nicholas Pearce Appointed 21 September 2024

COMPANY SECRETARY

The company does not have an appointed secretary

REGISTERED OFFICE

80 Mount Street Nottingham NG1 6HH

COMPANY REGISTRATION NUMBER

04503712 England and Wales

CHARITY REGISTRATION NUMBER

1099645

ACCOUNTANTS

The MGroup Partnership Chartered Certified Accountants 4 Witan Way Witney Oxon OX28 6FF

HIGHER EDUCATION POLICY INSTITUTE

REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 31 JULY 2025

PRINCIPAL PLACE OF BUSINESS

99 Banbury Road Oxford Oxon OX2 6JX

BANKERS

Lloyds Bank 87 London Road Headington Oxford Oxon OX3 9AB

SOLICITORS

Freeths LLP Nottingham 80 Mount Street Nottingham NG1 6HH

INVESTMENT ADVISOR

Wren Sterling Financial Planning Ltd Hinksey Court West Way Botley Oxon OX2 9JU

HIGHER EDUCATION POLICY INSTITUTE

TRUSTEES' REPORT FOR THE YEAR ENDED 31 JULY 2025

The Trustees present their Annual Report (which also serves the purpose of both a Trustees' report and Directors' report under company law) for the year ended 31 July 2025 under the Charities Act 2011, the Companies Act 2006 and Accounting and Reporting by Charities: Statement of Recommended Practice (SORP) applicable to Charities preparing their accounts, in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102), together with the independently examined financial statements for the year ended 31 July 2025.

The comparative figures are for the year ended 31 July 2024.

Status

The Higher Education Policy Institute (HEPI) is a charitable company limited by guarantee, incorporated in August 2002 and registered as a charity in September 2003.

The company was established under a Memorandum of Association that established the objects and powers of the charitable company and is governed under its Articles of Association. Members of the charitable company guarantee to contribute an amount not exceeding £1 to the assets of the charitable company in the event of winding up.

The reference and administrative details are shown on pages 1 to 2.

Objectives and activities

HEPI’s charitable objectives are ‘to promote research into and understanding of all aspects of higher education and to disseminate the useful results of such research for the education of policy makers and the general public in the United Kingdom’.

If 2022/23 was primarily about fully recovering to a pre-COVID position in terms of HEPI’s output and 2023/24 was partly focused on work prompted by the 2024 General Election, then 2024/25 was characterised by a near-record output taking place alongside modernisation – including a major visual rebrand and a new website, both of which went live early in 2025/26.

Looking ahead, HEPI plans to continue working constructively with policymakers across the political spectrum as higher education institutions fight to thrive – and sometimes to survive. We also plan to continue a process of modernisation of our back-office functions. As a non-partisan micro-organisation, HEPI will continue working collaboratively with other individuals and organisations committed to using good public policy, robust evidence and lively debate as a route to deliver the best possible higher education sector – for the benefits of students, staff and society.

HIGHER EDUCATION POLICY INSTITUTE

TRUSTEES' REPORT FOR THE YEAR ENDED 31 JULY 2025

Achievements and performance

HEPI had a successful year, whichever way that is measured. Most notably, perhaps, the number of HEPI’s corporate Partners reached its highest ever level. As a result and thanks to a highly performing staff team, aside from the previous year (which included the 2024 General Election), the number of HEPI publications and events ran at record levels. The available evidence also suggests HEPI’s work had more impact among policymakers, regulators and institutional leaders.

Key pieces of research in 2024/25 include HEPI’s regular annual surveys: the HEPI / Advance HE Student Academic Experience Survey; the HEPI / Kortext Student Generative AI Survey, which we believe to be HEPI’s most well-read piece of output ever; and the HEPI / Unite Students Applicant Index. We also published the annual HEPI / LSBU English Social Mobility Index and the Soft-Power Index.

Other notable themes covered by HEPI’s full-length reports in 2024/25 include: the role of third-space research professionals; the lives of Black early-career researchers (with the Society of Black Academics); awarding gaps by gender at Oxbridge (written by a graduate intern); the educational underachievement of boys and young men (sponsored by Ulster University); the extent to which school and college curricula prepare people for higher education (sponsored by the University of Chester); what devolution has meant for higher education 20 years on (sponsored by the Education Group); the impact of menstruation on learning (sponsored by the University of St Andrews); the continuing decline of language learning (sponsored by Duolingo); and entrepreneurial leadership (with the NCEE).

There were 33 HEPI events in 2024/25, higher than in every previous year except 2023/24. These included 13 roundtable discussions hosted with HEPI Partners, 11 webinars and nine in-person events. The HEPI Annual Conference, which had the title ‘Before, During, After: The route through higher education in changing times’, included presentations from the Chief Executives of Universities UK, UCAS and the Office for Students.

HEPI’s impact was felt in Government, Parliament and the media, with the organisation’s work being regularly quoted in official documents, ministerial speeches and parliamentary debates as well as in national, local and specialist media.

In June 2025, HEPI’s impact was publicly marked when the Director, Nick Hillman, was awarded an OBE in His Majesty the King’s Birthday Honours for ‘services to higher education’.

Financial review and plans for future periods

These financial statements confirm that HEPI was in a secure financial position at the end of 2024/25. Nonetheless, in common with other organisations, HEPI faces rising costs, arising from inflation, a growing staff team and regulatory burdens, while the whole higher education sector faces increased uncertainty stemming from the wider political, financial and geopolitical situation.

Future plans include continuing to conduct and disseminate research to further the aims of the charity as described in HEPI’s Articles of Association. HEPI also plans to maintain and develop relationships with existing and potential partner companies and higher education institutions.

The principal sources of funding remain sponsorship, grants and donations from academic and corporate organisations with an interest in the health of UK higher education. These resources allow the charity to continue its work, to fund further publications and research and to host in-person and online events.

The funds of the charity as at 31 July 2025 were £1,050,042 (2024 - £900,699) of which £nil (2024 - £20,000) represented restricted funds.

The charity holds reserves covering more than 12 months’ expenditure based on the 2025 accounts.

HIGHER EDUCATION POLICY INSTITUTE

TRUSTEES' REPORT FOR THE YEAR ENDED 31 JULY 2025

Investment policy

HEPI’s current investment strategy was originally set in 2018, when the Trustees opted for a ‘moderate’ risk profile given HEPI’s status as a charity. The objectives have been regularly reconsidered by the Trustees, for example in January 2023 and September 2024. In addition, HEPI Trustees met HEPI’s financial advisers in August 2024 to look at possible alternative options for HEPI’s investment portfolio but decided to make no changes. Senior HEPI staff additionally meet once a year, most recently in March 2025, with the financial advisers to keep an eye on performance. The Trustees continue to believe the existing arrangements provide an appropriate balance between risks and costs.

HEPI’s reserves are currently invested in two different investment funds, one with a greater portion of equities (60%) than the other (40%). Further balancing of risks beyond these investments is achieved by retaining a portion of the total reserves in two easy-access interest-bearing cash savings accounts. The trustees regularly review the charity's reserves to consider the amount of funds that should be held as investments and the amount retained as cash.

The extent to which the charity takes social, environmental and ethical considerations into account in its investment policy has been regularly covered at Trustee meetings and with HEPI’s financial advisers. The current position is that HEPI's investments are neither in specific ethical funds nor concentrated in less ethical places but are rather placed in funds that track the stock market.

Principal risks and uncertainties

There are no known catastrophic / likely risks currently facing HEPI. Nonetheless, like every other small organisation HEPI is constantly at risk of unexpected events and the risks currently faced include: a reliance on a small staff team, meaning little spare capacity if things go wrong; dependency on one landlord (Princeton University Press) for reasonably-priced office space in Oxford; reliance on a limited number of corporate Partners for a high proportion of HEPI’s income at a time of business uncertainty; squeezed incomes at higher education institutions, which could lead to a reassessment of donations to HEPI’s work; continuing political and economic uncertainty, including on the international stage; and cyber attacks.

Such risks are discussed regularly at HEPI’s Trustee meetings as well as at meetings of the HEPI Advisory Board. HEPI insures itself against a number of specific risks, including: Professional liability; Management liability; and Entity defence. Other insurance is also in place to covering items like office contents, business interruption, employer’s liability, public liability and legal expenses.

Public benefit

When planning the Charity's activities for the year, consideration has been given to the Charity Commission's guidance on public benefit and the Trustees are satisfied they meet the requirements.

HIGHER EDUCATION POLICY INSTITUTE

TRUSTEES' REPORT FOR THE YEAR ENDED 31 JULY 2025

Structure, governance and management

As previously noted in last year’s accounts, at the start of 2024/25, two HEPI Trustees – Sir David Bell and Professor Dame Helen Wallace – stepped down from the Trustees after serving the usual maximum term of office each (eight years). We remain very grateful for their many years of loyal service, including on the HEPI Advisory Board before becoming Trustees.

Professor Sir Christopher Husbands and Professor Nicholas Pearce, who both had experience serving on the HEPI Advisory Board, kindly agreed to fill the vacant roles with immediate effect.

All those who served as Trustees during the year and up to the date of the signature of the financial statements are:

Professor Dame Sally Mapstone (Chair)

Mary Curnock Cook CBE Professor Dame Julia Goodfellow Professor Sir Christopher Husbands (appointed 21 September 2024) Professor Nicholas Pearce (appointed 21 September 2024)

The following Trustees served during the year but resigned prior to the date of approving the accounts:

Sir David Bell (end of term reached at 21 September 2024) Professor Dame Helen Wallace (end of term reached at 21 September 2024)

The Trustees determine who will become new Trustees, in line with HEPI’s Articles of Association, which limit the number of Trustees to five. Trustees are limited to serving two periods of three years, with a second extension of up to two years.

There is no specific training offered to Trustees as they are all senior executives who have generally run much larger charities than HEPI. However, HEPI has a training budget available for the use of Trustees as well as staff.

The Trustees delegate day-to-day management of the charity to the Director, Nick Hillman.

While HEPI has in the past struggled to find comparable organisations against which to benchmark on remuneration, we are increasingly reliant on SmartThinking’s Salary Benchmarking Survey, which brings together data for a range of think tanks. Recent pay settlements for HEPI staff have been made with an eye on this document as well as practice across the higher education sector.

HEPI abides by the Charity Commission’s Charity Governance Code for smaller charities.

HIGHER EDUCATION POLICY INSTITUTE TRUSTEES. REPORT FOR THE YEAR ENDED 31 JULY 2025 Statwn•nt of trustees. responsiblliti• Trustees, who are also the directors of Higher EduG4tion P￿ICY Institute for the purpose of cornpany13w. are responsible for preparing the TrLtstees' Rep￿ and Ihe finanual Slatem￿t$ In Kwrdance applicat￿e law and Unit•Y Kingdom Accounb"ro Stsndards Iunited Kingdom Gentrr81ty A¢xepted Accounting PractrEI. Company L8w requires the trustees to wepare financial statements for each financial yèar give a true and fair view of the stst6 of aff8irs of the chanty and of the incwe resources arKI aP￿￿tiOn of resources Including the income and expenditure. of thg tharrtatAe cc4npany for th year. In p￿parIng the3e financial statement$, the trustees are requifed to.. sdect sulta￿e accounting wlKies aThJ then appty them u)nsslentty, observe methods arKI pn'r￿1pIeS in the Chan"ls SORP.. make ju(hJements and estsmate$ Ihat are reasonatAe and pry￿ent," stsle whether applicable UK ACC￿rrtIng St8ndards have b88n follo%bpd. s￿51eCt to any Material departures diwlo3ed and explwned In the financial statemenls.. and prepare the finar￿4 statem8rrts on the going c￿nCern tiasts urless it is inappropriate to presume th81 the charity will ¢onb'nue in oper8t)n. The Trust&s arg foSFK)nSA)￿ for kee￿.ng Jequate afxounb.ro re¢￿dS that dTscthe ￿1h reasonable accuracy at any lime the financial position of the chatty and enable Ihem to ensure that the financjal slatemenis comply with the Companies Acl 20CE. They are also responsibk for safeguardir￿j the as58ts of the rarity arKJ hence for taking reaSona￿e steps for the prevention and detection of fraud and other iryularities. This raport has been prepared Kccydance wrth the Statement of Recommen(d pTrcti￿- Accounting and Reporting by Charities. 8nd in aoxjrdance vmh thè sppual prov￿￿5 of Part Vll of the Companies Act 2(￿8 relattng 10 small CoMp￿tes. Approved by the Iruslees on.. &"gned M Ilg behalf by ProfesKr Dame Salty Mapslo Chaif Trustee

HIGHER EDUCATION POLICY INSTITUTE

INDEPENDENT EXAMINER'S REPORT FOR THE YEAR ENDED 31 JULY 2025

I report to the trustees on my examination of the accounts of Higher Education Policy Institute for the year ended 31 July 2025, which are set out on pages 9 to 24.

RESPONSIBILITIES AND BASIS OF REPORT

As the charity’s trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).

Having satisfied myself that the accounts of the company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as carried out under section 145 of the Charities Act 2011 (the ‘2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

INDEPENDENT EXAMINER'S STATEMENT

Since the Company’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of ICAEW, which is one of the listed bodies.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Chris Denton ICAEW Independent Examiner For and on behalf of The MGroup Partnership Chartered Certified Accountants 4 Witan Way Witney Oxon, OX28 6FF

13 March 2026

HIGHER EDUCATION POLICY INSTITUTE

STATEMENT OF FINANCIAL ACTIVITIES AND INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 JULY 2025

----- Start of picture text -----
Notes Unrestricted Restricted Total Total
Funds Funds Funds 2025 Funds 2024
£ £ £ £
INCOME
Charitable activities
Sponsorships and speakers fees 243,283 - 243,283 235,500
Conference fees 8,679 - 8,679 9,414
Partnership scheme 582,766 - 582,766 526,624
Grant income - - - 20,000
834,728 - 834,728 791,538
Other income
Interest received 6,923 - 6,923 7,955
Total income 4 841,651 - 841,651 799,493
Expenditure on:
Raising funds 7,727 - 7,727 5,291
Charitable activities 718,469 20,000 738,469 725,717
Other expenditure 303 - 303 -
Total expenditure 5 726,499 20,000 746,499 731,008
NET INCOME BEFORE TRANSFERS 115,152 (20,000) 95,152 68,485
OTHER RECOGNISED GAINS / LOSSES
Gain on investment assets 10 54,191 - 54,191 60,422
NET MOVEMENT IN FUNDS 169,343 (20,000) 149,343 128,907
Reconciliation of funds
Total funds at 1 August 2024 16 880,699 20,000 900,699 771,792
Total funds at 31 July 2025 16 1,050,042 - 1,050,042 900,699
----- End of picture text -----

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

HIGHER EDUCATION POLICY INSTITUTE

BALANCE SHEET AS AT 31 JULY 2025

----- Start of picture text -----
Notes 2025 2024
£ £
FIXED ASSETS
Tangible assets 9 6,100 8,244
Investments 10 881,113 634,563
887,213 642,807
CURRENT ASSETS
Debtors 11 185,990 178,001
Cash at bank and in hand 18 419,423 485,204
605,413 663,205
CREDITORS : Amounts falling due
within one year 12 442,584 405,313
NET CURRENT ASSETS 162,829 257,892
NET ASSETS 1,050,042 900,699
FUNDS OF THE CHARITY:
Unrestricted income funds 15 1,050,042 880,699
Restricted income funds 15 - 20,000
1,050,042 900,699
----- End of picture text -----

Registered Company Number: 04503712

HIGHER EDUCATION POLICY INSTITUTE BALANCE SHEET AS AT 31 JULY 2025 These w)Ltnts have t￿n prepared in acxx)rda￿e wth 1he special provisions relating to sma¥ companies within Part 15 of Ihe Comp￿leS Ad 2[￿ 8fK1 wth the Finanaal Re￿Irt7Thj Standard 102 Sethn 1A smaller eniits. For the financial yaar end8d 31 Juty 2025 the ¢J)mpany was to exemkcrfi from audit under 5e¢tion 477 of the Cornpanies Ad 2(K6. No notKe has been deKXXited uThJer secbon 476 of Ihe ad rewesting thè compyny to obiain an audit. The directors ackrKy￿Iedge their fesponsibl1rf￿ for o)mplyi'ng wth the requirernonls ofthe Companw Act 20C6 vrith respect to accounting record5 and the Yeparat￿ of a(xx)unts. Signed on beheff of the t4Jard ol tnjstees Professor Dame Sally Mapstone Trustee- Chair Date approved by the tKJard. Regislornll Company NumtAY 0￿712 11

HIGHER EDUCATION POLICY INSTITUTE

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 JULY 2025

----- Start of picture text -----
Notes 2025 2024
£ £
Cash flows from operating activities
Net income for the reporting period (as per the SOFA) 95,152 68,485
Adjustments for:
Depreciation charges 3,274 4,318
Increase in debtors (7,989) (24,630)
Loss on the sale of other tangible fixed assets 303 -
Increase in creditors 37,271 138,310
Cash generated from operations 128,011 186,483
Interest received (6,923) (7,955)
Net cash generated by operating activities 121,088 178,528
Cash flows from investing activities:
Interest received 6,923 7,955
Investment mangement costs 7,727 5,291
Purchase of property, plant and equipment (1,583) (175)
Proceeds from property, plant and equipment 150 -
Proceeds from sale of investments - -
Purchase of investments (200,086) -
Net cash used in investing activities (186,869) 13,071
Net (decrease) / increase in cash and cash equivalents (65,781) 191,599
Cash and cash equivalents at the beginning of the year 485,204 293,605
Cash and cash equivalents at the end of the year 18 419,423 485,204
----- End of picture text -----

HIGHER EDUCATION POLICY INSTITUTE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2025

1 GENERAL INFORMATION

Higher Education Policy Institute is a registered charity and company limited by guarantee incorporated in England and Wales. Its registered office and principal office is:

Registered office Principal place of business 80 Mount Street 99 Banbury Road Nottingham Oxford NG1 6HH OX2 6JX

The financial statements are presented in Sterling, which is the functional currency of the charity.

The charity is a public benefit entity.

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of preparation of the financial statements

These financial statements have been prepared in accordance with the Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing accounts in accordance with the Financial Reporting Standard 102 Section 1A smaller entities, Financial Reporting Standard 102 Section 1A smaller entities 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' ("FRS 102"), the Companies Act 2006 and the Charities Act 2011.

Going concern

The Trustees have further reviewed the Charity's cash flow forecasts for the year to 31 July 2026 and have considered any potential issues that will have an impact on the Charity's different sources of income as well as their ongoing costs.

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements and there are no material uncertainties about the charity's ability to confinue to operate.

Incoming resources

Incoming resources in the period shown in the Statement of Financial Activities represents funds received from the sponsorship and speakers fees, partnership schemes and conference fees.

Income from sponsorship and speakers fees and partnership schemes are recognised when the charity obtains a right to consideration in exchange for its performance. Any amounts received in advance are deferred to future periods.

Income from conference fees are included in incoming resources in the period in which the relevant event takes place.

HIGHER EDUCATION POLICY INSTITUTE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2025

2 STATEMENT OF ACCOUNTING POLICIES (continued…)

Grants

Grants and donations are only included in the Statement of Financial Activities when the charity has unconditional entitlement to the resources and are treated as restricted or unrestricted income in line with the donor’s instructions.

The charity received total grant income of £Nil (2024: £20,000). All of this related to income received from Research England to support HEPI's activities where they contribute to the understanding of issues facing research and knowledge exchange in universities.

Expenditure

Expenditure is directly attributable to specific activities and is charged to those cost categories.

Tangible fixed assets

Fixed assets are stated at cost less accumulated depreciation.

Depreciation has been provided at the following rates so as to write off the cost less residual value of the assets over their estimated useful lives.

Website costs Reducing balance basis at 20% per annum Computer and Office Equipment Straight line basis at 33.33% per annum

On disposal, the difference between the net disposal proceeds and the carrying amount of the item sold is recognised in the statement of financial activities.

Fixed Asset Investments

Listed investments are shown at fair value and revalued annually with any surplus or deficit dealt with through the statement of financial activities.

Leases

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to the income and expenditure account on a straight line basis over the lease term.

Payments made under operating leases are recognised as expenditure over the lease term on a straight-line basis.

HIGHER EDUCATION POLICY INSTITUTE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2025

2 STATEMENT OF ACCOUNTING POLICIES (continued…)

Taxation

The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.

Being a registered charity, the charity is not liable to taxation on its income.

Financial instruments

The charity only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.

Financial assets are measured at cost and are assessed at the end of each reporting period for objective evidence of impairment. Where objective evidence of impairment is found, an impairment loss is recognised in the statement of financial activities.

The impairment loss for financial assets measured at cost is measured as the difference between an asset's carrying amount and the best estimate, which is an approximation, of the amount that the charity would receive for the asset if it were to be sold at the reporting date.

Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is an enforceable right to set off the recognised amount and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Impairment of non-financial assets

At each reporting date non-financial assets not carried at fair value, like goodwill and plant, property and equipment, are reviewed to determine whether there is an indication that an asset may be impaired. If there is an indication of possible impairment, the recoverable amount of any asset or group of related assets (which is the higher of value in use and the fair value less cost to sell) is estimated and compared with its carrying amount. If the recoverable amount is lower, the carrying amount of the asset is reduced to its recoverable amount and an impairment loss is recognised immediately in the statement of financial activities.

If an impairment loss is subsequently reversed, the carrying amount of the asset, or group of related assets, is increased to the revised estimate of its recoverable amount, but not to exceed the amount that would have been determined had no impairment loss been recognised for the asset, or group of related assets, in prior periods. A reversal of an impairment loss is recognised immediately in the statement of financial activities.

Debtors

Short term debtors are measured at transaction price, less any impairment.

HIGHER EDUCATION POLICY INSTITUTE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2025

2 STATEMENT OF ACCOUNTING POLICIES (continued…)

Creditors

Short term trade creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and subsequently at amortised cost.

Status of funds

General funds are unrestricted funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside for specific purposes at the discretion of the trustees.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by the donors or which have been raised by the charity for particular purposes.

Legal status of the charity

The company does not have share capital and is limited by guarantee. Each member of the company undertakes to contribute to the assets of the company, in the event of it being wound up such amounts as may be required will not exceed £1.

Pensions

The charity operates a defined contribution pension scheme. The amount charged to the income and expenditure account in respect of pension costs and other post-retirement benefits is the amount payable in the year. Differences between contributions payable and contributions actually paid in the year are shown as other creditors in the balance sheet.

3 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

In the application of the charity's accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

HIGHER EDUCATION POLICY INSTITUTE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2025

4 INCOMING RESOURCES

3% (2024 - 3%) of the charity's turnover is attributable to geographical markets outside of the United Kingdom.

The incoming resources included on page 9 consist of the following sources of income:

Unrestricted income:
Charitable activities
Sponsorship and speakers fees
Conference fees
Partnership scheme
Other income
Interest received
Restricted income:
Charitable activities
Grant income
Total income		 2025
£
243,283
8,679
582,766
834,728
6,923
841,651
-
841,651		 2024
£
235,500
9,414
526,624
771,538
7,955
779,493
20,000
799,493

HIGHER EDUCATION POLICY INSTITUTE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2025

5 EXPENDITURE

The resources expended included on page 9 consist of the following sources of expenditure:

Raising funds
Investment management costs
Unrestricted expenditure:
Charitable activities
Sub-contractors
Postage
Publication printing
Events and conferences
Rent (operating leases)
Wages
Employer's National Insurance
Staff pension cost
Insurance
Books and data
Telephone and fax
Computer operating costs
Printing, postage and stationery
Advertising and marketing
Gifts
Entertainment
Travel and subsistence
Legal fees
Accountancy and payroll bureau fees
Bookkeeping
Bank charges
Staff training
Subscriptions
Depreciation
Restricted funds expenditure:
Charitable activities
Publication printing
Postage
Sub-contractors
Wages
Other expenditure
Loss on sale of tangible fixed assets
Total expenditure		 2025
£
7,727
64,685
13,425
17,070
71,712
12,461
351,357
34,590
57,266
1,306
803
743
3,923
2,005
23,607
1,188
7,388
19,622
6,385
11,525
1,806
237
6,110
5,981
3,274
718,469
12,800
-
-
7,200
20,000
303
746,499		 2024
£
5,291
108,365
13,716
29,529
70,618
11,911
312,287
32,539
52,045
1,256
792
616
6,257
3,849
6,470
597
5,333
21,823
2,881
9,185
1,769
224
4,119
5,218
4,318
705,717
5,559
2,730
300
11,411
20,000
-
731,008

HIGHER EDUCATION POLICY INSTITUTE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2025

6 EMPLOYEES

The average number of persons employed by the charity (including trustees) during the year was:

Average number of employees
STAFF COSTS
Staff costs during the year amounted to:
Salaries and wages
Social security costs
Pension contributions		 2025
7
2025
£
358,557
34,590
57,266
450,413		 2024
6
2024
£
323,698
32,539
52,045
408,282

7 STAFF COSTS

No trustees (2024 - 2) were reimbursed for travel costs and proofreading services.

One employee (2024: one) received emoluments, excluding employer pension contributions, totalling between £110,000 and £119,999. Retirement benefits are accruing to this member of staff under a defined contribution pension scheme; contributions in 2025 totalled £38,944 (2024: £37,809).

£110,000 - £119,999
8
Salary and wages
Pension
KEY MANAGEMENT PERSONNEL REMUNERATION
Key management personnel remuneration for the year amounted to:		 2025
1
2025
£
114,330
38,944
153,274		 2024
1
2024
£
118,500
37,809
156,309

HIGHER EDUCATION POLICY INSTITUTE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2025

9 TANGIBLE ASSETS

Cost
At 1 August 2024
Additions
Disposals
At 31 July 2025
Accumulated depreciation
At 1 August 2024
Charge for year
Disposals
At 31 July 2025
Net book value
At 1 August 2024
At 31 July 2025		 Website
costs
£
30,776
-
-
30,776
25,212
1,113
-
26,325
5,564
4,451		 Computer
and Office
Equipment
£
29,470
1,583
(741)
30,312
26,790
2,161
(288)
28,663
2,680
1,649		 Total
£
60,246
1,583
(741)
61,088
52,002
3,274
(288)
54,988
8,244
6,100

HIGHER EDUCATION POLICY INSTITUTE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2025

10 FIXED ASSET INVESTMENTS

10 FIXED ASSET INVESTMENTS
Total other
investments
£
Cost
At 1 August 2024 634,563
Additions 200,086
Revaluation 54,191
Management charges (7,727)
At 31 July 2025 881,113
Net book value
At 1 August 2024 634,563
At 31 July 2025 881,113
The investments are UK listed investments and have been measured at market value.
11 DEBTORS
Trade debtors 2025
£
160,759		 2024
£
172,580
Prepayments and accrued income 25,231 5,421
185,990 178,001
12 CREDITORS:amounts falling due within one year
Trade creditors 2025
£
18,891		 2024
£
15,073
Taxation and social security 46,146 65,037
Accruals and deferred income 363,097 309,508
Other creditors 14,450 15,695
442,584 405,313

HIGHER EDUCATION POLICY INSTITUTE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2025

13 DEFERRED INCOME

Included in accruals and deferred income is deferred income of £352,107 in respect of income received in 2025 which relates to 2026. In the accounts for the year ended 31 July 2024 income totalling £301,007 was deferred and has been released in the current year.

14 COMMITMENTS

Amounts falling due under operating leases:
Expiring in less than one year
Expiring in more than one but less than five years		 2025
£
9,282
12,003
21,285		 2024
£
2,745
-
2,745

15 ANALYSIS OF NET ASSETS BETWEEN FUNDS

Fund balances at 31 July 2025 are represented by:

Tangible assets
Investments
Debtors
Cash at bank and in hand
Current liabilities		 £
6,100
881,113
185,990
419,423
(442,584)
1,050,042
Unrestricted
funds		 Restricted
funds
£
-
-
-
-
-
-
 Total funds
£
6,100
881,113
185,990
419,423
(442,584)
1,050,042

HIGHER EDUCATION POLICY INSTITUTE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2025

16 MOVEMENT IN FUNDS

£
Unrestricted funds:
Charitable activities
880,699
Total unrestricted funds
880,699
Restricted funds
Grant income
20,000
Total restricted funds
20,000
Total funds
900,699
Movement in funds (previous year)
£
Unrestricted funds:
Charitable activities
751,792
Total unrestricted funds
751,792
Restricted funds
Grant income
20,000
Total restricted funds
20,000
Total funds
771,792
At 1
August
2023
At 1
August
2024		 £
841,651
841,651
-
-
841,651
£
779,493
779,493
20,000
20,000
799,493
Incoming
resources
Incoming
resources		 £
(672,308)
(672,308)
(20,000)
(20,000)
(692,308)
£
(650,586)
(650,586)
(20,000)
(20,000)
(670,586)
Expenditure
and gains
Expenditure
and gains		 £
-
-
-
-
-
£
-
-
-
-
-

Transfers
Transfers
 £
1,050,042
1,050,042
-
-
1,050,042
£
880,699
880,699
20,000
20,000
900,699
As at 31
July 2024
As at 31
July 2025

Grant income

Funds of £Nil (2024: £20,000) from Research England to support HEPI's activities where they contribute to the understanding of issues facing research and knowledge exchange in universities.

HIGHER EDUCATION POLICY INSTITUTE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2025

17 RELATED PARTY TRANSACTIONS

During the year the Charity made the following related party transactions:

T Huxley
Cousin of director (Nick Hillman)
Remuneration
Research services:
R Hillman
Father of director (Nick Hillman)
Remuneration
Proofreading services:
Trustees and Directors
Professor Dame Julia Goodfellow
Trustee
Remuneration
Travel expenses:
Sir Christopher Husbands
Trustee
Remuneration
Travel expenses:
18
ANALYSIS OF CASH AND CASH EQUIVALENTS
Cash in hand
Total cash and cash equivalents		 2025
£
520
2025
£
-
2025
£
-
2025
£
267
2025
£
419,423
419,423		 2024
£
520
2024
£
100
2024
£
41
2024
£
700
2024
£
485,204
485,204