‘Inflation-busting’ fees hike at ICAEW
ICAEW members face an inflation-busting increase in their subscription fees for 2008, which will rake in an extra £1m
The June 2007 ICAEW annual conference will see members asked to vote on a 4%
increase in subscription fees to £272 for 2008, from £262 for this year, with a
similar rise indicated for 2009.
The current rate of inflation based on the consumer price index (CPI) is 3%.
An ICAEW spokesman said that rather than base subscription fee rate increases
on the CPI, the institute used the wage inflation figure, which stood at 4.1%,
including bonuses. Wage inflation is one of the measures used to calculate the
CPI.
The institute was widely criticised for raising subscription fees for 2006 to
£252 from £231 to help develop a more flexible ACA qualification.
Some members suggested that the huge increase was to cover costs incurred in
the ICAEW’s failed merger attempt with CIPFA.
ICAEW member Bruce Lawson said he was ‘relieved’ that membership fees had not
risen by 9% again.
With membership expected to rise over the next couple of years, the ICAEW’s
budget for full-rate membership revenue should increase from £27m in 2007 to
more than £28m in 2008.
The institute has announced that more than 5,500 students sat its exams, the
largest number in 25 years. Pass rates fluctuated from 80% for the financial
reporting paper to 97% for the accounting paper.
ACCA and CIMA have lower subscription rates for their members, at £170 and
£206 respectively. ICAS charges members £360 in fees.