Britain’s biggest teaching union has posted “an unexpectedly large” cash surplus, with Covid-19 savings among the “extraordinary” factors helping it to defy expectations and end the year in the black.

The NEU’s latest annual accounts report shows that its income for the year to the end of August 2020 was £61.8 million, and expenditure was £56.4 million - giving an operating surplus of £5.4 million.

The report also states that a budget deficit of £1.1 million had been forecast, taking account of expenditure during the 2019 general election. 

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The report states: “This is an unexpectedly large operating surplus and there are extraordinary reasons for this, the main three being: an increase in income; a significant reduction in operational expenditure nationally due to the impact of Covid-19 restrictions; [and] similarly, a reduction in district and branch expenditure due to Covid-19 restrictions.”

NEU: ‘Unexpectedly large operating surplus’

The report reveals that there has been an increase in membership since the start of the pandemic, which has brought an increase in subscription income.

It also says operational costs have been underspent by £1.2 million, adding: “The main reason for this is a big saving on travel and subsistence since March and a substantial saving made from not holding a physical annual conference. These variances are likely to carry on in the current financial year.”

However, the report says that rental income from its premises, Hamilton House in St Pancras, central London, has reduced as it has taken back part of the second floor that was previously rented out - yet this will eventually result in “ongoing savings” when all headquarters functions are in one building.