The college was founded in London in 1851 as a training institute for teachers for Wesleyan Methodist schools, but moved to Oxford in 1959.

John Wesley was convinced of the importance of education and, following the advice of his friend Philip Doddridge, opened schools at The Foundery in London, and at Newcastle and Kingswood.

The site was severely damaged by an incendiary bomb on 4 March 1944 during the blitz in the Second World War, and the buildings were never repaired.

Oxford University validated a number of qualifications at the college from this date, including degrees in education and theology.

Graduation ceremonies were presided over by the vice-chancellor in the Sheldonian Theatre according to the usual form, with slight modifications to allow for the fact that students had not matriculated.

In 2000, financial pressures prompted the Methodist Church to cease operating Westminster College, although its students were permitted to continue studying for their degrees through the University of Oxford.

In addition to housing the Westminster Institute of Education, other subjects such as theology, philosophy, and media and communication are also taught at what is now Oxford Brookes University's Harcourt Hill campus.