The Trustee Governors present their annual report and financial statements for the year ended 31 August 2025.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charitable company's Memorandum & Articles of Association, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)".
Chair’s Foreword by Pat Dyson (Chair)
2024/25 continued to be one of strategic changes for New College Worcester (NCW).
In December 2024 we concluded Phase One of the NCW Business Repositioning Plan (BRP) which involved a residential staff restructuring, non-teaching staff reductions and non-teaching staff pension restructuring. This work was in support of our strategic objective to Secure a Sustainable Future for NCW. More information on the financial impact of this can be found in the section on Page 9 Plans for the future” We recognise the impact and pressures this had on staff affected by these essential changes as well as the senior leadership team involved in implementing this work.
In September 2024, we launched four strategic workstreams which focused on our Future Vision, Estates, Strategic Governance and Income Growth. These formed Phase 2 of the BRP. Governor representation from our three committees (finance, safeguarding and education) alongside the Principal and Senior Leadership Team (SLT) representation was intrinsic to the workstreams outputs.
The Future Vision and Income Growth strategic workstreams aligned and developed over-time into four specific recommendations which were approved at the Trustee Governor Conference in May 2025. A further fifth recommendation was included at this point as a contingency in the event that the first four recommendations were not able to generate sufficient income quickly enough to provide the sustainable income platform NCW needed. This fifth recommendation became Phase 3 and is referenced in the penultimate paragraph of the Going Concern Position Statement.
The Estates workstream strategic outputs are a key part of our future sustainability plans and aligned with operational output relating to premises and resources improvements for NCW staff and students.
The Strategic Governance workstream undertook the implementation of the Spring 2024 External Governance Review recommendations and supported a strong governance platform on which to move forward. This included whole college reviews of policies, contracts and better spending controls.
To ensure strategic intent was clearly aligned to operational delivery, the 24/25 AY College Improvement Plan (CIP) aligned with the three NCW strategic objectives. Governors continued to constructively challenge the Principal and SLT reporting at committees and full board meetings, continuing the strengthened focus on robust operational planning and quality assurance.
We are delighted to report the success of this approach which was demonstrated in the November 2024 Ofsted education Inspection with all five judgement areas being graded Good or Outstanding
The Principal and Senior Leadership Team (SLT) have again worked tirelessly throughout the year in supporting the work of myself and the governing body through participating in and informing the strategic workstreams whilst maintaining high quality standards in our residential and education provision. We all continue to work through the challenging and changing economic and political landscapes.
During 2024/2025 four Trustee/Governors stepped down from their roles and I would like to acknowledge their inputs and contributions to the strategic change’s governors initiated during this time. In summer 2025, focusing on longer term governor succession planning, we commenced recruitment for these vacant roles.
This report concludes my second year as Chair, during which time the board and myself have ensured our BRP has very clearly underpinned our strategic priorities. I remain grateful for the support of the Vice Chair and trustee governor colleagues in taking a considerable amount of work forward through the strategic workstreams and subsequent governance oversight of activities arising.
As reported last year, changes that took place during the year 2024/25 continued to enable the Governing Body and Principal to be positive about the future and sustain our focus on longer term planning during 2025/26.
The Charitable Company's objects are:
- To provide and promote a religious, social and academic education for young persons who are visually impaired in the United Kingdom of Great Britain and Northern Ireland, the Channel Islands and the Isle of Man and elsewhere in the Commonwealth and, subject thereto, from any other part of the world, with the ancillary purpose of supporting and facilitating generally the provision of education for such young persons;
- To manage and conduct New College Worcester (incorporating Worcester College For The Blind and Chorleywood College For Girls With Little Or No Sight) (NCW) and to hold and administer its property in accordance with the provisions set out in the Charitable Company's Memorandum and Articles of Association, but in particular to secure that the religious instruction given in the College is in accordance with the Doctrines of the Church of England.
- To use restricted funds, legacies and endowments for the purposes stated. A legacy policy is in place to support the furtherance of this objective.
Public benefit
The Trustee Governors confirm that they have complied with the duty in section 4 of the Charities Act 2006 to have due regard to the Charity Commission’s general guidance on public benefit, ‘Charities and Public Benefit.’
NCW is a specialist non maintained special school and college for children and young people whose primary SEN is severe vision impairment. Students have the cognitive ability to access the full National Curriculum with pathways to GCSE and A Level. NCW is unlike other generic special schools or other specialist schools publicising that Vision Impairment is their specialism, as their students also have other significant additional needs.
All teachers at NCW, in addition to being subject specialists, are required to become qualified teachers of the vision impaired (QTVIs). The combination of being a QTVI and a subject specialist means that our teachers develop specialist expertise that cannot be easily replicated in mainstream settings due to the significant training and time that it takes to develop the level of skill required. These areas of specialism include specialist braille codes such as maths, science and music. An example of this is in the area of music where there is a national shortage of expertise in music braille and young braillists are routinely denied the opportunity to be able to access music notation in an accessible format because there is not the expertise or resource to teach them the skills. Our curriculum is fully inclusive, devised at the very outset for the VI learner and NCW has its own transcription department who model best practice in creating accessible modified resources.
Outreach Service
NCW is committed to supporting the education of children and young people both attending the school and also those in other educational settings by sharing knowledge and expertise with other professionals working in education or with young people and parents of children with a vision impairment. Staff at NCW are very keen to share their knowledge and expertise and give their time voluntarily to contribute to our rich and varied outreach programme. Outreach events throughout the year take different formats ranging from twilight webinars to face to face events where a range of practical workshops and presentations are offered, with participants often taking away with them valuable resources. Topics for outreach are wide ranging and include courses aimed at both primary and secondary, specialist subject areas, access arrangements for examinations and the specialist VI skills such as effective strategies for teaching braille or how to introduce speech software. We produce an outreach bulletin called “Reaching Out”, sent to anyone who has attended our outreach and opted in to receive them, which highlights a different focus each half term on wide ranging topics such as mental health, using the Alexa as a resource and accessible PE and sport. NCW does not charge delegates for attending online webinars and only covers catering costs for face-to-face events. We do not cover the cost of the outreach service but see it as an important facet of our role within the VI education workforce.
Mr Stark, Assistant Principal: Curriculum, Teaching and Learning, attended a meeting with Ofqual, exam board modification leads, and United Kingdom Association for Accessible Formats (UKAAF). Mr Stark presented to the attendees and shared examples of good and bad modifications in braille and Modified Large Print (MLP) papers. Modifications have certainly improved over recent years but there are still some issues which we will now be working with UKAAF and the awarding bodies to address:
Accessibility in relation to label lines on diagrams are poor.
Braille modifications should be the starting point for MLP modifications which will not only reduce their costs in terms of the number of modifications, but also lead to improvements in MLP diagrams, which are often worse than the braille ones with too much detail, confusing graph grids, mixed sized fonts, poorly positioned labels and so on.
Mr Stark is also working with A Level Music boards to ensure that going forward, we do not have to pay additional finance to have set scores in braille.
The languages GCSE papers have a question on one paper based on a photograph. We are working to ensure that braille students are not disadvantaged. The exam board’s initial suggestions are not appropriate, which were to have a note next to their grade to say incomplete, or to just ignore the question. We are pushing for a written, short description of the photograph so students can write about it.
Geography GCSE papers have many diagrams, which are not accessible, including OS maps with fine detail on.
Victoria Ward, Assistant Principal: Lead Practitioner for Visual Impairment, in conjunction with Head of Braille, Susan Potter, have put forward a proposal to exam boards to develop a GCSE in Braille (Unified English Braille). This proposal seeks to bridge the curriculum gap by offering a GCSE that tests the accuracy, fluency, and technical application of UEB as a robust system for information access and communication. If there is appetite for an exam board to work with us, the next step would be to put our proposal to the DfE and to form a working party with key organisations across the sector. Given that UEB spans many English-speaking countries this has the potential to become an international GCSE and would raise NCW’s profile as a Centre of Excellence.
Residential developments
Key developments to note within the residential provision are as follows:
Working with the residential teams to create more robust and detailed admissions paperwork.
The weekend assessments documents have been updated to ensure that need and risk are understood and shared prior to assessment.
Focus on risk assessments and ensuring that a risk competent culture is developed in planning and mitigating risk.
Management training for managers has commenced to upskill and train employees in management positions.
All residential team have completed their Educational Visit Lead (EVL) training.
With focus on qualifications, extensions have been granted and an overall drive and commitment to completion of qualifications.
A new monthly reporting document has been devised to capture progress, children's voice and positive communication with the parents.
A new care plan format has been devised, including input from the whole residential teams. These are much more detailed, and outlined all proposed care, intervention and planning, directly linked to the new monthly reports and therapeutic interventions.
Residential training has been delivered on National Minimum Standards (NMS), care plans, sensory and proprioception activities.
Safeguarding Compliance
Safeguarding continues to remain a central priority across the organisation and the recent external scrutiny has provided strong assurance regarding the robustness of our current practice and the trajectory of further development. The Ofsted inspection in November 2024 offered a rigorous evaluation of safeguarding arrangements and concluded that the school has made excellent progress since the inspector's previous visit. Inspectors identified safeguarding as a clear area of strength, noting substantial improvements in culture, systems, and responsiveness. This represents a significant shift from the 2022 inspection, during which safeguarding was identified as a key area of concern. The excellent judgement for Leadership and Management in the latest 2026 inspection is a direct endorsement of the sustained, whole‑school commitment to strengthening safeguarding practice at all levels. Our strategic approach to safeguarding continues to evolve in line with statutory guidance, emerging risks, and sector expectations. The school is currently undertaking a full 360° Online Safety Audit, enabling a detailed evaluation of online behaviours, digital safeguarding processes and the technological protections that support safe access. This will be complemented by the launch of a whole‑organisation mental health audit, ensuring that emotional wellbeing and early identification of need remain embedded as integral components of safeguarding. Technological safeguarding measures continue to be enhanced, including the operation of a robust firewall and keystroke‑monitoring technology, both of which provide real‑time alerts and early visibility of concerning online activity. These systems significantly strengthen our capacity to monitor risks and respond swiftly.
The safeguarding team continues to demonstrate confidence and professional curiosity in managing concerns, consistently exercising their ability to escalate cases where thresholds of risk are reached or where early escalation is deemed necessary to protect a child. The team’s strong multi‑agency relationships ensure that concerns are handled efficiently and transparently, with a clear emphasis on timely intervention.
Looking ahead, the school is already preparing for the anticipated safeguarding changes expected in September 2026, reviewing forthcoming updates and building these into future planning. This proactive approach will ensure that policy, training, and operational processes remain fully aligned with statutory expectations well in advance of implementation.
Overall, safeguarding across the organisation is characterised by strong leadership, rigorous systems, and a continuous improvement mindset. The positive external validation from Ofsted provides a firm foundation on which to build as we further strengthen our safeguarding culture.
Outreach
Outreach is continuing to work towards building our profile and promoting our expertise.
This term we held one twilight, free, online session on Foundational Braille which had 60 attendees from a variety of types of setting, as well as from the Braillists Foundation. Feedback demonstrated the appreciation of the practical ideas given to develop the tactile skills essential to be an effective user of braille.
We are also promoting awareness through working with university students and other events for professionals. In January, we held a MQVI Birmingham course student visit day at NCW. A member of staff also delivered workshops at the Hab VI UK Conference in Birmingham in March.
Bespoke courses are also offered, and in February, the Isle of Man service again paid for two of its staff to have a day’s training in Worcester.
To boost numbers attending our paid courses in Worcester, the decision has been made to amalgamate our usual summer term courses into a Professionals’ Workshop Day. This could provide an indication as to whether it might be feasible to offer a more extended event in the future.
Students
Students at New College achieved excellent results overall in the Summer 2025 exam series at the end of Year 11. Free School Meals ( FSM), Pupil Premium, (PP), and Child Looked After (CLA) students in the cohort performed at least as well as their peers, we ensure they have equal access to technology, support in the residential setting, and study support session in the working day to ensure they are not behind the other students in the cohort. We are still awaiting the progress 8 score for our Year 11 cohort; however, we gained an Attainment 8 score of 3.5. This indicates that the students exceeded predicted grades and made excellent progress overall. We set ambitious targets within the College, using FFT as a baseline, but we are more ambitious than this for our learners.
Key outcomes from the KS4 analysis:
Ambitious targets led to improved outcomes – we are working on target setting this year with HODs.
Retake groups not particularly successful. We have increased Math’s hours this year as we have identified this as a weakness.
English results were weaker this year, in part due to merging the group for some of the year dues to staff absence.
Strong performing subjects include Food and Nutrition, all MFL subjects, Double Science, Computer Science and Music.
Subjects which will be supported more this year include Art, English, and Performing Arts.
English final report grades very different from actual grades. The class was merged into one large group (due to staff absence through illness) which had a big impact.
Most subjects reported grades were very close to actual grades.
Attainment 8 is measure of the achievement of a pupil across 8 qualifications including mathematics (double weighted) and English (double weighted), 3 further qualifications that count in the English Baccalaureate (EBacc) measure and 3 further qualifications that can be GCSE qualifications (including EBacc subjects) or any other non-GCSE qualifications on the DfE approved list. Each individual grade a pupil achieves is assigned a point score, which is then used to calculate a pupil’s Attainment 8 score. Overall, students exceeded FFT predicted grades.
Progress 8 means for each individual child you can tell if they progressed more or less than average, factoring in where they were when they started secondary school. Most schools are between -1 and +1, NCW students make good progress compared to estimated grades across the range of subjects on average.
Students in the Sixth Form exceeded expectations this year. Ambitious internal targets are set based on baseline assessments and Year 11 results, and our students achieve grades way above typical grades in mainstream schools following on from similar outcomes at KS4. This is due to our small teaching classes, adapted teaching, since all of our teachers are QTVIs, and our close links between the curriculum staff and the residential setting which promotes a full waking day curriculum. Vision Impairment is no barrier to success at KS5 or indeed applying through UCAS, and we had offers of places for all students who applied in a wide range of subjects.
Key outcomes from the KS5 analysis:
Humanities performed very well, despite staff absence, staff stepped in to fill gaps.
Very small groups at KS5 this year due to legacy of the overall weaker year group. We discussed whether GCSE would be appropriate when they were in Year 9 so they really exceeded our expectations. Strong subjects include Sociology, Psychology, BTEC Environmental Sustainability, and Music Performance. Subjects in need of additional support include Biology and Health and Social Care. Final report grades extremely accurate predictors.
Most students choose to stay with us for Sixth Form due to the outstanding progress made from GCSE to KS5. We also offer a range of Level 2 courses for our sixth-from students which meet the needs of students who cannot access Level 3, and students on these programmes all succeeded. We also have Year 14 (called 13+ at NCW) which allows students to study a bespoke programme alongside extended work experience. Our work experience offer for all our students ensures all have the best possible chance of moving into a successful career, which bucks the trend of employment statistics for young people with VI nationally.
Principal Risks and Uncertainties
The Trustee Governors confirm that the major risks have been reviewed, and systems or procedures have been established to manage these.
The Risk Register is linked to the 5-year rolling NCW Strategic Plan 2023-28, approved in July 2023, and identifies the key strategic risks that may affect its delivery. The Board reviews the strategic risk register at each Full Governing Body (FGB) meeting and amendments are made accordingly. The register is a dynamic document and is adjusted after each FGB to ensure the Board is properly managing strategic risks throughout the year. The register now contains 10 strategic risks; an assessment of their significance and the mitigating actions being taken. Retrospective Pre-controls have been discussed and agreed between Principal and Chair.
The 10 Strategic Risks are:
Risk 1 – Safeguarding - RED
Risk 2 – Student Numbers RED
Risk 3 – Educational Results – GREEN/AMBER
Risk 4 – Student Outcomes - AMBER
Risk 5 – Resources – AMBER
Risk 6 – Sustainable Future – RED
Risk 7 – Effective Staff – AMBER
Risk 8 – Business Repositioning Plan (BRP) – AMBER
Risk 9 – Estates Mandatory Compliance – AMBER
Risk 10 – Clarity on NCW Strategic Direction – AMBER
The following three of the ten risks rated Red and the strategies to manage these are as below:
RISK 1: Safeguarding due to its level of utmost importance Mitigating Actions:
Continuous improvement to meet national minimum standards.
Processes in place and implementation monitored.
Residential Care & Safeguarding Ofsted February 2026 provisional positive outcome advised, final outcome currently awaited.
Staff trained and routinely reminded of expectations.
Governance tightened and all committees address safeguarding
Reflective Actions are embedded as a result of key safeguarding issues in 2023/ 24, including review.
(PSHE programme) Personal, Social, Health and Economic Education.
External SfG Audit took place Spring Term AY24/25 and Action Plan implemented.
New highly experienced Director of Residential (also a DDSL) commenced May 2025.
Implementation of new filtering and monitoring software during 2025.
RISK 2 Student numbers Mitigating Actions:
Development of outreach opportunities.
Retention of students prioritised.
Strong focus on maintaining student numbers.
Effective tribunal preparation and outcomes.
Exploration of potential new categories of students particularly international/privately funded students.
Chasing of LAs regarding funding decisions.
Staffing tribunals. Bev Watkins (solicitor) engaged to support families through the tribunal process.
Confirmed removal of numbers cap with the DfE following Education Ofsted in November 2024.
Introduction of new model of student numbers forecasting for Trustee Governors consideration.
Ongoing dialogue with neighbouring local authorities regarding future student need linked to BRP phase 3 recommendations.
Extension of SEND to permit the admission of a small number of non-VI learners agreed by governors in March 2026.
RISK 6 Sustainable future Mitigating Actions:
Strategic plan in place with strong ownership by the Board and SLTs.
Improvements in facilities/ property planned for via a rolling programme.
Major focus on developing partnership and/or networking arrangements.
New models of delivery are being considered under phase 3 of the BRP.
Fundraising strategy reviewed and implementation ongoing.
Amended capital recovery deed agreed with RNIB.
External Governance Review conducted with feedback to FGB July 2024.
Ongoing implementation of actions arising from External Governance Review.
Recruitment to 4 x governor vacancies completed autumn term AY 2526.
Red book’ site valuation conducted.
Due to lower student numbers, teaching income fell by 14% compared to 2023/2024. The focus has been on increasing student numbers which translates into a higher income and increased financial stability for the College. One of the effects of the Covid-19 pandemic was that some of our learners were funded for an extra year which resulted in an increase in students in our Sixth Form, which is now returning to normal levels and therefore reducing student numbers. Total income for the year was £6,697,457 compared to £8,876,150 in FY 2023/2024; this included two very generous legacies from ex-students John Claricoat and Alan Smith totaling £1,968,108.
Net expenditure (after transfers between funds) on general unrestricted activities for the year at £325,060 compared to £350,213 in 2023/24. The 2025 position continues to reflect additional costs incurred in restructuring and repositioning the management infrastructure.
Total expenditure was £7,890,600, an increase of £105,704 (1.4%) on the prior year. The College faces a backlog of maintenance and therefore expenditure in this area will continue to increase.
Donations and legacies totaled £808,573 in 2024/2025 compared to £2,403,746 the previous year. This includes a Teachers Pay & Pension Grant (£40,870), and an award from the Vinchel Foundation (£160,000) and the two legacies from ex-students John Claricoat and Alan Smith final distribution totaling £404,932.
Designated funds decreased by £827,602 during the year.
Reserves Policy
Total funds held as at 31 August 2025 amounted to £15,411,599 (2024: £17,249,742). This included restricted funds of £288,104 (2024: £358,585), endowment funds of £548,137 (2024: £548,137) and designated funds of £15,451,682 (2024: £16,279,284). Designated fund explanations are included in Note 26 of the Accounts.
Generally unrestricted funds were £57,676 (2024: £382,736). Ideally College reserves of £800,000 are considered reasonable and in line with Trustee Governors commitments to have the College reserves equal to around 2 months running costs, to secure the College’s financial stability. However, the current economic and political climate continues to increase financial pressures on all providers of special education needs services given that they are funded by Local Authorities. Trustee Governors remain mindful of the uncertainties and risks but aim to improve sustainability through increasing the levels and sources of funding and continued reviews of curriculum, staffing and fees. Strategic financial management and internal control are underpinned by strong Governance arrangements and a high level of financial competence within the Governing Body. The Trustee Governors continue to receive reassurances from external Auditors that adequate systems of internal control are in place and are exercised.
Factors likely to affect the future financial performance or position
The major factor affecting the financial position of The College is student numbers. Much effort is going into raising the profile of New College Worcester and to market the college in a much more vigorous fashion. These measures should offset the effects of government and council policy for students to stay local and stay mainstream, and we are seeing an increase in interest from numbers attending our Family Open days etc.
The Business Repositioning Programme (BRP) has reduced the cost base by over £1.5m and increased student income through the revised fee matrix structure which has resulted in, when all students are on the new Fee Matrix, reducing the break-even position of the College from 75 students to 60 students.
Going Concern position
With current student numbers the College Cash Flow remains positive until May 2027 with the further option of selling additional land and buildings. One strip of land has been identified and valued at £1.5m by three different estate agents and could be sold quickly if needed to extend our Cash Flow remaining positive into FY2028/29, whilst work to increase student numbers continue.
However, because of the actions taken by the Governing Body as described below in the “Plans for the future” section before the end of FY2025/26, and before the start of FY2026/27, New College Worcester (NCW) will be part of the AET Group (Aequalis Educational Trust). AET has the proven ability to help NCW increase students from a wider range and by expanding into the 19–25-year-old sector over the next 6 to 12 months.
Because of the above actions, Trustee Governors are certain that New College Worcester will remain in operation on the current Campus as a Going Concern, albeit with the addition of non-VI students on-site, a 19–25-year-old offer and NCW operating under the umbrella of the AET group, but retaining our identity and specialist VI focus.
The Business Repositioning Programme undertaken over the last two years has reduced base-line operating costs by approx. £1.5m, increased fees realistically, lowering the student numbers break-even position to around 61-65 students, compared to the 75-80 students previously needed.
Despite this, because of the lower-than-expected student numbers for FY2025/26, starting off in September 2025 with only 49 students, the Governing Body decided to instigate a Merger, Acquisition & Sales (MA&S) process to find a suitable partner for New College Worcester (NCW).
Even with the highly thought of revamped student accommodation and a “Good” Residential Ofsted in 2026 Grade and “Good to Outstanding” Educational Ofsted Grades in 2024 student numbers have fallen dramatically.
This fall in student numbers is mostly down to the general political educational environment which aims very much to “Stay Mainstream, Stay Local” with additional funding going to mainstream schools to accommodate Special Educational Needs (SEN) students, including Visually Impaired (VI) students. Many of these students would have traditionally been educated at NCW.
Local Authorities (LA’s) are also slowing up the process of enrolment to special schools by taking each case to a Tribunal and setting the tribunal dates into their future financial years. NCW had 8 tribunals outstanding at the start of September 2025, some of which were put back to May 2026. If these 8 students had started at NCW in September 2025 it would have given us 57 students and an extra £1.1m turnover. It is worth noting that NCW has a 90% success rate at tribunals.
In the light of the above conditions, Governors felt that the best way of increasing student numbers back up to the Campus’s potential of 90-100 students was to seek a merger partner who could help us widen our offer and attract additional types of students and their funding to the site.
NCW Governors took the decision in October 2025 to appoint an external specialist firm to lead an MA&S programme (Merger, Acquisition & Sales programme). Whilst the ongoing financial position could be held until May 2027 there were high risks if student income didn’t increase in time and it was thus clear that being part of a bigger organisation that could help NCW accelerate its strategic growth programme would secure the long-term future.
As of April 2026, this programme has been concluded and NCW will transfer to AET, with AET becoming the sole member. The Board have been fully involved in the MA&S process and AET were the strongest partner that arose. Their ethos, educational strengths and growth plans stood out to NCW Governors from the initial expression of interest and throughout the due diligence process. These factors together with their desire to support and develop SEND as part of their growing organisation stood out to NCW. We therefore look forward to a strengthening position as we enter the next AY (2026/2027) being part of AET, confident that we are securing NCW” s long-term future.
The Charitable Company is a company limited by guarantee, incorporated on 15 January 2007 and registered as a charity on 14 March 2007. The Charitable Company is governed by its Memorandum and Articles of Association dated 11 January 2007 (as amended by special resolution dated 6 March 2007 and as amended by special resolution dated 24 January 2012, and as amended by special resolution dated 15 November 2021 and further revised by special resolution dated 25 May 2022).
The Trustee Directors of the Charitable Company, known as Trustee Governors with effect from 24 January 2012, are its Trustees for the purposes of charity law and throughout this report are collectively referred to as the Trustee Governors.
In previous years, in accordance with the Company's Articles of Association dated 11 January 2007 (as amended by Special Resolution dated 6 March 2007) one third of the Trustee Directors, chosen by ballot, together with one co-opted Trustee Director, were re-elected with new Trustee Governors being elected at future AGMs to fill vacancies arising. However, on 24 January 2012 the Company's Articles of Association were further revised by special resolution providing, amongst other things, a) for the establishment of a Governing Body in place of a Board of Trustee Directors where there was no committee established to discharge the functions of a school governing body, and b) the appointment of Trustee Governors for a term of four years.
The Principal is an ex officio Trustee Governor and member of the Governing Body.
None of the Trustee Governors has any beneficial interest in the Charitable Company. All of the Trustee Governors are members of the Charitable Company and guarantee to contribute up to £5 in the event of its winding up.
The Trustee Governors receive training throughout the year and by external course attendance, as is deemed appropriate.
The Governing Body consists of at least nine and not more than fifteen individuals, all of whom must be Members. Trustee Governors must retire at the Annual General Meeting next following the fourth anniversary of their election, though they may stand for re-election. A retiring Trustee Governor who remains qualified may be re-appointed but cannot serve as a Trustee Governor for more than two four-year terms of office without a one-year break.
The Trustee Governors meet regularly to manage the Charitable Company's affairs, with at least three meetings per year. A quorum of five Trustee Governors is required for each meeting.
The Principal has overall responsibility under the direction of the Governing Body for the internal organisation, management and discipline of the College and in particular for the provision, development and delivery of its education services. In consultation with the Principal the Governing Body has established a Senior Leadership Team under the leadership of the Principal to have responsibility for the operational management of the College. The remuneration of key management personnel is set by the Governing body.
Prior to incorporation, the operations of the Charitable Company were conducted as part of RNIB and upon incorporation RNIB and its subsidiary RNIB Services Limited transferred (by way of trust) most of the property and donated some other buildings and land, together with their associated assets, used by the Charitable Company and RNIB holds a capital recovery deed over most of the properties held by the Charitable Company, the details of which can be found elsewhere in the Accounts.
The Trustee Governors, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
Key Management personnel remuneration
The Key Management personnel remuneration is decided following the Pay Policy as written by Worcestershire County Council HR and which was adopted by the NCW Board of Governors on 06.12.2023. The relevant section on the Leadership pay is reproduced as below:
Leadership Pay
When determining the leadership pay range, it will be reviewed in accordance with the School Teachers’ Pay and Conditions Document (STP&CD) and include a review of the college/Principal group size. The salaries of the Principal, Vice Principal(s) and any Assistant Principal will be reviewed annually as required by the STP&CD. There will be a procedure and timetable for the annual review which will give the option of formal representation. Written notification will be given as required, including the performance objectives agreed, which will be reviewed as part of the next annual salary determination.
The Principal's Pay Range will reflect the responsibilities of the job in addition to the size of the college, any other factors specified in the STP&CD and advice issued by the Local Authority on the salaries of Headteachers at comparable schools.
The current Principal in this college is paid in accordance with National Teacher’s Pay Scales.
In accordance with National Teacher’s Pay Scales, the Principal’s pay range will only exceed the maximum of the Principal’s Pay range where the Governing body determines that specific circumstances warrant a higher-than-normal payment. In that situation, the maximum of the Principal’s pay range and any additional payments made will not exceed the maximum of the Principal group by more than 25%, other than in exceptional circumstances.
The Governing Body will determine the pay ranges of the Vice-Principal(s) and any Assistant Principal(s) in relation to the duties and responsibilities of those teachers. The Governing Body can review the pay ranges at any time if they consider it necessary to retain a Vice or Assistant Principal.
The maximum of the Principal’s pay range must not exceed the maximum of the Principal group for the college. The pay range for a Vice or Assistant Principal should only overlap the Principal’s pay range in exceptional circumstances. There should be appropriate scope within the range to allow for performance-related progress over time.
In the case of a Vice Principal post the governors must be satisfied that the responsibility exceeds that expected of an Assistant Principal employed in the same college, including responsibility for discharging in full the responsibilities of the principal in the absence of the Principal.
Leadership Pay progression
The annual determination of salaries will be conducted by the appropriate committee. Pay progression will not be automatic, it will be based upon the most recent appraisal carried out in accordance with the regulations and the current STP&CD and reported to the full Governing Body. Pay decisions should be confirmed in writing.
The Governing Body will ensure that performance-based progression awards reflect individual performance, and that objective-setting is rigorous; that the college’s Pay policy provides a clear link between levels of achievement and progression.
The Financial, Resources and Safeguarding Committee (FRSC) will review the Principal’s and Vice Principal’s pay in accordance with the STP&CD and award up to two performance points as outlined under Appendix B and E, having regard to the evidence of the most recent appraisal including any recommendation on pay progression.
A resolution proposing that Kendall Wadley LLP be reappointed as auditor of the company will be put to the Members.
The Trustee Governors' report, including the strategic report, was approved by the Board of Trustee Governors.
The Trustee Governors, who are also the directors of New College Worcester for the purpose of company law, are responsible for preparing the Trustee Governors' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the Trustee Governors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.
In preparing these financial statements, the Trustee Governors are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.
The Trustee Governors are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Opinion
We have audited the financial statements of New College Worcester (the ‘charitable company’) for the year ended 31 August 2025 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
In auditing the financial statements, we have concluded that the Trustee Governors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Trustee Governors with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The Trustee Governors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the trustees' report, which includes the strategic report and the directors' report prepared for the purposes of company law, for the financial year for which the financial statements are prepared, is consistent with the financial statements; and
the strategic report and the directors' report included within the trustees' report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report included within the Trustee Governors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of trustees' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
- an understanding of the risk assessment process (including the assessment of the risk of fraud) adopted by the Board is obtained and their attitude to risk ascertained.
- an assessment of the susceptibility to material mis-statement of the financial statements as a result of management over-ride or fraud is made.
- it is ensured that the engagement team have, collectively, the appropriate competence, capabilities and skills to be involved in the assignment, are fully briefed and understand the risks specific to the charity.
The information obtained through the assessment to risk procedures is reviewed and the following work undertaken:
- processes to test the outcomes of our assessment include, a review of Board minutes, analytical review, the relevance and accuracy of significant accounting estimates, substantive testing of significant transactions, work to identify unusual or unexpected accounting entries including the testing of journal entries, information disclosed in the financial statements is traced to supporting documentation. In all instances it is acknowledged that material misstatements that arise from fraud may involve deliberate concealment or collusion and are, therefore, by their very nature harder to detect than those arising from error.
- an understanding of the legal and regulatory framework as applicable to the charity is obtained together with knowledge of the procedures put in place by the charity in order to comply with the same.
It should be noted that Auditing standards limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of our report
This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Designated
Investments
Raising funds
Designated
Investments
Raising funds
New College Worcester is a private company limited by guarantee incorporated in England and Wales (company number: 06053218) and a charity registered in England and Wales (charity number: 1118377). The registered office is New College Worcester, Whittington Road, Worcester, WR5 2JX.
The financial statements have been prepared in accordance with the charitable company's governing document, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) (Charities SORP (FRS102))", the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102). The charitable company is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in sterling, which is the functional currency of the charitable company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of certain financial instruments at fair value. The principal accounting policies adopted are set out below.
At the time of approving the financial statements, the Trustee Governors have a reasonable expectation that the charitable company has adequate resources to continue in operational existence for the foreseeable future and that there no material uncertainties about its ability to continue. Thus the Trustee Governors continue to adopt the going concern basis of accounting in preparing the financial statements.
The Business Repositioning Programme undertaken over the last two years has reduced base-line operating costs by approx. £1.5m, increased fees realistically and subsequently lowered the student numbers break-even position to around 61-65 students, compared to 75-80 students previously.
Despite this, because of the lower-than-expected student numbers for FY2025/26, starting off in September 2025 with only 49 students, the Governing Body decided to instigate a Merger, Acquisition & Sales (MA&S) process to find a suitable partner for New College Worcester (NCW).
Even with the highly thought of revamped student accommodation and a “Good” Residential Ofsted Grade and “Good to Outstanding” Educational Ofsted Grades Student numbers had fallen dramatically. This fall in student numbers is mostly down to the general political educational environment which aims very much to “Stay Mainstream, Stay Local” with additional funding going to mainstream schools to accommodate Special Educational Needs (SEN) students, including Visually Impaired (VI) students, many of whom would have traditionally been educated at NCW.
Local Authorities (LA’s) are also slowing up the process of enrolment to special schools by taking each case to a Tribunal and setting the tribunal dates into their future financial years – NCW had 8 tribunals outstanding at the start of September 2025 some of which were put back to May 2026. If these 8 students had started at NCW in September 25 it would of given us 57 students and an extra £1.1m turnover – NCW has a 90% success rate at tribunals.
Governors felt that the best way of increasing student numbers back to the Campus’s potential of 90-100 students was to seek a merger partner who could help us widen our offer and attract additional types of students and their funding to the site.
With the current student numbers the College Cash-Flow remains positive until May 2027 with the further options of selling land and buildings. One strip of land has been identified and valued at £1.5m by three different estate agents and could be sold quickly if needed to extend our Cash Flow remaining positive into 2028.
The MA&S process is being overseen by FRP Advisory, a specialist firm in this area, and the aim is to complete a Merger, Acquisition or Sale by 31st August 2026 with an agreed timeline very much on course.
Because of the above actions Governors are certain that New College Worcester will remain in operation on the current Campus as a Going-Concern, albeit with the addition of non-VI students on-site and NCW operating under an umbrella of another entity such as a MAT.
Unrestricted funds are available for use at the discretion of the Trustee Governors in furtherance of their charitable objectives unless the funds have been designated for other purposes.
Designated funds comprise funds which have been set aside at the discretion of the Trustee Governors for specific purposes. The purposes and uses of the designated funds are set out in the notes to the accounts.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Expendable endowment funds are subject to specific conditions by donors that the funds must be invested to produce income by the charitable company.
Income is recognised when the charitable company is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the charitable company has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Government grant income is recognised on a receivable basis. Where income is received in advance of meeting any performance related conditions income is deferred until the performance conditions are met.
Legacies are recognised on receipt or otherwise if the charitable company has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
Restricted grant income is recognised on a receivable basis. Unrestricted grant income is recognised over the period to which it relates.
School fees are recognised during the school term to which they relate.
Investment income is recognised on a receivable basis.
Other income is recognised on a receivable basis over the period to which it relates.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
All expenditure is accounted for on an accruals basis.
Expenditure on raising funds relates to expenditure directly attributable to fundraising activities.
Charitable expenditure comprises those costs directly attributable to the Charitable Company's work.
Governance costs comprise the costs which are directly attributable to the management of the Charitable Company's assets, organisational procedures and the necessary legal procedures for compliance with statutory requirements.
Governance costs have been allocated to academic charitable activities.
Support costs are apportioned over the charitable activities of the Charitable Company on a percentage of staff costs basis.
Postage and stationery and computer costs are apportioned between academic and support costs based on estimated usage prior to the apportionment of support costs between the charitable activities of the Charitable Company.
Assets costing £1,000 or more are capitalised.
Tangible fixed assets other than freehold land are stated at cost less depreciation.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
At each reporting end date, the charitable company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less.
The charitable company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
Liabilities are recognised where there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the charitable company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the charitable company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
The charitable company operates two defined benefit pension schemes.
The Teachers' Pension Scheme forms part of a multi-employer scheme and, therefore, it is unable to identify its share of the underlying assets and liabilities in the scheme on a consistent and reliable basis. As such the contributions are accounted for as if the scheme were defined contribution and charged as they become payable.
The Pensions Trust scheme also forms part of a multi-employer scheme. It is not possible for the company to obtain sufficient information to enable it to account for the scheme as a defined benefit scheme. Therefore it accounts for the scheme as a defined contribution scheme.
The scheme is classified as a 'last-man standing arrangement'. Therefore the company is potentially liable for other participating employers' obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the scheme. Participating employers are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme.
Where the scheme is in deficit and where the company has agreed to a deficit funding arrangement the company recognises a liability for this obligation. The amount recognised is the net present value of the deficit reduction contributions payable under the agreement that relates to the deficit. The present value is calculated using the discount rate detailed in these disclosures. The unwinding of the discount rate is recognised as a finance cost.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to net income/(expenditure) for the year so as to produce a constant periodic rate of interest on the remaining balance of the liability.
In the application of the charitable company’s accounting policies, the Trustee Governors 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.
Depreciation is based on judgement of the useful economic life and residual value of assets based on historical experience. Details of depreciation rates are in note 1.6 above.
Independent Schools' Pension Scheme
Where the scheme is in deficit and where the company has agreed to a deficit funding arrangement the company recognises a liability for this obligation. The amount recognised is the net present value of the deficit reduction contributions payable under the agreement that relates to the deficit. The present value is calculated using the discount rate detailed in note 23. The discount rates used are the equivalent single discount rates which, when used to discount the future recovery plan contributions due, would give the same results as using a full AA corporate bond yield curve to discount the same recovery plan contributions.
Other specified income as below
Teaching income
Music lessons for students
Student contributions to outdoor pursuits
Kitchen sales
Outreach and support income
Investments
Income from listed investments
Hire income and interest receivable on cash balances are recognised on a receivable basis and accrue to general revenue.
Other income
Raising funds
Designated
Fundraising Strategy Planning
Teaching
Student care
Kitchen and domestic
Specific purpose projects
Outdoor pursuits
Educational visits
Student external courses
Postage and stationery
Computer costs
Repairs and maintenance
Sundry
Subscriptions
Administration staff training
Premises repairs and maintenance
Rates and water
Heat and light
Insurance
Postage and stationery
Telephone
Equipment repairs and maintenance
Computer costs
Audit and accountancy
Legal and professional fees
Bank charges
Investment management fees
Postage and stationery, and computer costs are apportioned between academic and support costs based on estimated usage prior to the appointment of support costs between the charitable activities of the Charitable Company.
Other support costs are apportioned over the charitable activities of the Charitable Company on a percentage of staff costs basis.
Included in staff costs is £40,626 (2024: £22,742) for company secretarial and governance time.
Governance costs includes payments to the auditors of £25,150 (2024: £10,140) for audit fees, £400 (2024: £400) for other assurance services and £11,090 (2024: £2,192) for other non audit services.
One trustee has been paid remuneration or has received other benefits from employment with the charity. The Principal only receives remuneration in respect of services she provides undertaking the role of Principal under her contract of employment.
The value of trustees' remuneration and other benefits was as follows:
Mrs R Perks (Principal and Trustee), Remuneration £115,902 (2024: £108,271) and Employers Pension Contributions £33,241 (2024: £27,622).
During the year trustees' expenses of £5,051 (2024: £4,841) were reimbursed to 3 trustees (2024: 3 trustees). Expenses related to travel, hospitality, room hire, training and other small sundry expenses.
The average monthly number of employees during the year was:
Of the employees whose emoluments exceed £60,000, all employees have retirement benefits accruing under multi-employer defined benefit pension schemes. Total employer pensions contributions for the year for these employees amounted to £165,654 (2024: £132,460).
Included in wages and salaries are redundancy costs of £nil (2024: £166,856).
Key management personnel is defined as the Principal, Vice Principal, Assistant Principals, Director of Residential, Head of Outreach & Education Co-Ordinator, Strateic Lead - Student Wellbeing and Designated Safeguarding Lead and Director of Finance. The total employee benefits of the key management personnel were £845,297 (2024: £785,613).
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
During the year £44,000 (2024: £43,000) was released from unrestricted funds to the Pension Scheme reserve. Additionally, £294,046 (2024: £466,245) was transferred from restricted funds to unrestricted funds to represent the assets purchased from restricted funds. £197,890 was transferred from the designated fund to equate the carry forward fund balance to the value of tangible fixed assets (2024: £1,850,512 was transferred into designated funds). Additionally the £400,000 fund designated for property refurbishment was transferred to the unrestricted fund now the refurbishment programme is complete.
Included in land and buildings is freehold land with a net book value of £164,000.
During the year ended 31 March 2008 trusteeship of land and buildings of market value of £12,520,425 was transferred from Royal National Institute of Blind People and its subsidiary RNIB Services Limited to New College Worcester, subject to a capital recovery deed whereby if the property is sold prior to 8 June 2028, which would require written consent and confirmation that the consideration of such a sale is not below market value from RNIB, then the Charitable Company shall pay RNIB the lower of 82% of the consideration of sale plus VAT and £5,000,000 plus VAT.
In 2021, a deed of variation was entered into and, by agreement with RNIB, proceeds of a permitted disposal may be invested into alternative premises that deliver services to the blind and partially sighted.
Deferred income is included in the financial statements as follows:
The Teachers' Pension Scheme (TPS) is a statutory, contributory, defined benefit scheme, governed by the Teachers’ Pension Scheme Regulations 2014. Membership is automatic for teachers. All teachers have the option to opt-out of the TPS following enrolment.
The TPS is an unfunded scheme to which both the member and employer makes contributions, as a percentage of salary - these contributions are credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.
Valuation of the Teachers’ Pension Scheme
The Government Actuary, using normal actuarial principles, conducts a formal actuarial review of the TPS in accordance with the Public Service Pensions (Valuations and Employer Cost Cap) Directions 2014 published by HM Treasury every 4 years. The aim of the review is to ensure scheme costs are recognised and managed appropriately and the review specifies the level of future contributions.
Actuarial scheme valuations are dependent on assumptions about the value of future costs, design of benefits and many other factors. The latest actuarial valuation of the TPS was carried out as at 31 March 2020. The valuation report was published by the Department for Education on 27 October 2023, with the SCAPE rate, set by HMT, applying a notional investment return based on 1.7% above the rate of CPI. The key elements of the valuation outcome are:
• Employer contribution rates set at 28.68% of pensionable pay (including a 0.08% administration levy). This is an increase of 5% in employer contributions and the cost control result is such that no change in member benefits is needed.
• Total scheme liabilities (pensions currently in payment and the estimated cost of future benefits) for service to the effective date of £262,000 million and notional assets (estimated future contributions together with the notional investments held at the valuation date) of £222,200 million, giving a notional past service deficit of £39,800 million.
The result of this valuation was implemented from 1 April 2024.The next valuation result is due to be implemented from 1 April 2027.
The employer's pension costs paid to TPS in the period amounted to £510,856 (2024: £415,903).
A copy of the valuation report and supporting documentation is on the Teachers’ Pensions website.
Under the definitions set out in FRS 102, the TPS is an unfunded multi-employer pension scheme. The charitable company is unable to identify its share of the underlying assets and liabilities of the plan. Accordingly, the charitable company has taken advantage of the exemption in FRS 102 and has accounted for its contributions to the scheme as if it were a defined contribution scheme. The charitable company has set out above, the information available on the scheme.
The college participates in The Pensions Trust Independent Schools' Pension Scheme, a multi-employer scheme which provides benefits to some 51 non-associated employers. The scheme is a defined benefit scheme in the UK. It is not possible for the company to obtain sufficient information to enable it to account for the scheme as a defined benefit scheme. Therefore it accounts for the scheme as a defined contribution scheme.
The scheme is subject to the funding legislation outlined in the Pensions Act 2004 which came into force on 30 December 2005. This, together with documents issued by the Pensions Regulator and Technical Actuarial Standards issued by the Financial Reporting Council, set out the framework for funding defined benefit occupational pension schemes in the UK.
The scheme is classified as a 'last-man standing arrangement'. Therefore the company is potentially liable for other participating employers' obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the scheme. Participating employers are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme.
A full actuarial valuation for the scheme was carried out with an effective date of 30 September 2023. This actuarial valuation was certified on 11 December 2024 and showed assets of £99.2m, liabilities of £151.5m and a deficit of £52.3m. To eliminate this funding shortfall, the trustees and the participating employers have agreed that additional contributions will be paid, in combination from all employers, to the scheme as follows:
From 1 September 2025 to 31 January 2034 : £6m per annum (payable monthly and increasing by 3% on each 1st September).
The scheme's previous valuation was carried out with an effective date of 30 September 2020. This valuation showed assets of £201.1m, liabilities of £256.3m and a deficit of £55.2m. To eliminate this funding shortfall, the Trustee has asked the participating employers to pay additional contributions to the scheme as follows:
From 1 September 2022 to 30 June 2032 : £2.69m per annum (payable monthly and increasing 3% on each 1st September).
The recovery plan contributions are allocated to each participating employer in line with their estimated share of the scheme liabilities.
Where the scheme is in deficit and where the company has agreed to a deficit funding arrangement the company recognises a liability for this obligation. The amount recognised is the net present value of the deficit reduction contributions payable under the agreement that relates to the deficit. The present value is calculated using the discount rate detailed in these disclosures. The unwinding of the discount rate is recognised as a finance cost.
The discount rates shown above are the equivalent single discount rates which, when used to discount the future recovery plan contributions due, would give the same results as using a full AA corporate bond yield curve to discount the same recovery plan contributions.
Endowment funds represent assets which must be held permanently by the charitable company. Income arising on the endowment funds can be used in accordance with the objects of the charitable company and is included as unrestricted income. Any capital gains or losses arising on the assets form part of the fund.
Endowment Funds are held to provide income for scholarships, prizes, grants for activities at the College and towards the students' further education. Income generated from these funds is attributed to the associated restricted fund. Further details of these funds can be found in the restricted fund note.
The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.
Details of the purpose of the main restricted funds are given below, A number of smaller value funds (<£500) also exist arising from donations from individuals or specific fund raising activities.
EFA Bursary Fund Grant - Grant funding targeted for student experiencing the greatest financial disadvantages and / or course-related costs.
Lightmongers Affiliation - Contributions towards costs of association with Lightmongers.
Pupil Premium Funding - Government funding to raise the attainment of disadvantaged pupils.
Archive Fund - Donation to support the archiving of NCW documents.
Bransford Trust (Art) - Donations towards Visiting Artists.
The Beatrice Laing Trust - Donation towards blackout blinds.
IT Designated Fund - College restricted fund for students' IT equipment.
Mental Health - For the provision of counselling services.
VICTA - Support for students applying for University.
VI Specialist Equipment - Up to date ICT equipment for generic use in College.
Vinchel Foundation, The Kildare Trust and Edward Cadbury Charitable Trust - In support of refurbishment works for the 6th form hostel.
DFE Maintenance - (Devolved Formula Capital allocation) - For maintenance to buildings and other facilities.
The Michael Marsh Charitable Trust - For digital theatre equipment.
Low Vision Aid Funding - For low vision aids for classrooms.
Glow Maths - In support of the Maths department using Glow maths resources.
Tesco - Supporting independent living and outdoor play equipment.
Worcestershire County Council - In support of the MUGA repairs and youth club project.
DMF Charitable Trust and Baron Davenport's Charity - In support of the youth club project.
J Hobbins - Donation for the purchase of a showdown table.
National Lottery Community Fund, The Percy Bilton Trust, Ulverscroft Foundation and the Saintbury Trust - All supporting the cost of new outdoor play equipment.
The Eveson Trust - Donation toward the cost of a new vehicle.
The Powell Family Foundation and Donations in memory of S Reilly - Donations towards the creation of a sensory room.
WO Street Charitable Foundation - Donation toward the cost of new paper heating machines.
Tutoring grant - funding received to support one-to-one tutoring.
Awards for All - funding received for the Hear to Help project.
Pete & Thomas Just Giving - funding received for specialist exercise equipment.
OSF Year 3 - funding for facility upgrades and maintenance.
Associated Funds
Additional Scholarship Foundation - Scholarships and grants for students and to establish students in the world.
Bonham Fund - Prize for student entering University to read Mathematics.
College Prize Fund - Various annual prizes and awards.
De Cordova Fund - Scholarships to enter University to take up a literary career.
Eric Hamilton Tucker Trust - Grants to enable students to travel abroad.
Gullick Bequest - Holiday grants to students.
Hextall Foundation - Scholarships post New College Worcester for education or travel.
Higby Fund - Grants to students wishing to enter Oxford University.
Scholarship Foundation - Scholarships at NCW or at University / College or promotes education generally.
The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.
The Trustee Governors have designated the properties previously held under trust by RNIB as these properties are subject to a capital recovery deed.
During the year ended 31 March 2008 land and buildings of market value of £12,520,425 were transferred from Royal National Institute of Blind People and its subsidiary RNIB Services Limited to New College Worcester, subject to a capital recovery deed whereby if the property is sold prior to 8 June 2028, which would require written consent and confirmation that the consideration of such a sale is not below market value from RNIB, then the Charitable Company shall pay RNIB the lower of 82% of the consideration of sale plus VAT and £5,000,000 plus VAT.
The Charitable Company assigns all fixed assets to a designated fund. This is done to ensure that the Charitable Company will have suitable level of reserves to meet future depreciation costs relating to these fixed assets and to recognise the fact that future depreciation charges will not directly affect the net operating capital of the Charitable Company.
In 2021 the Trustee Governors designated a sum of £400,000 for the purpose of undertaking a programme of property refurbishment. This was transferred in 2025 because the designated refurbishment programme was completed.
Unrestricted funds
Designated funds
Restricted funds
Endowment funds
Unrestricted funds
Designated funds
Restricted funds
Endowment funds
Amounts contracted for but not provided in the financial statements:
At the reporting end date the charitable company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Other than detailed in note 11 there were no related party transactions during this or the prior year.
The Trustees took the decision in October 2025 to engage in a Merger, Acquisition & Sales process. As of April 2026 this programme has concluded and New College Worcester will transfer to Aequalis Education Trust (AET) with AET becoming the sole member.