HEFCE Board - decisions on 2011/12 funding for HE

As you may recall, the Vice-Chancellor’s Christmas message highlighted that:

  • the Secretary of State’s annual grant letter to the Higher Education Funding Council for England (HEFCE) for 2011-12 suggested a reduction of six per cent in funding for teaching and a reduction of four per cent for research;
  • a clearer picture of the financial implications would be available following the HEFCE Board meeting on 28 January 2011.

HEFCE has now published details of the decisions made by the HEFCE Board last Friday:

Further reductions for 2010/11

  • Funding for 2010-11 will be reduced by a further £162 million for teaching and £27.6 million for research. The reduction to teaching grant is 3.5 per cent and the reduction to research is 1.7 per cent compared to previously announced figures.

Funding for 2011/12

HEFCE is allocating £6,507 million for the 2011-12 academic year as follows:

  • £4,339 million for recurrent funding for teaching. This is a further reduction of £180 million (4 per cent) for 2011-12. Funding for widening participation and improving retention has been maintained at current levels.
  • £1,558 million recurrent funding for research. This is a further reduction of £17.4 million (1.1 per cent) for 2011-12. Funding is being allocated more selectively by prioritising internationally excellent and world leading research, taking account of the steer in the grant letter.
  • £150 million for the Higher Education Innovation Fund (HEIF), which enables universities and business to continue to work more closely together.
  • £30 million to be set aside for moderation funding. This will limit the reductions compared to 2010-11 for some institutions for one year and smooth the transition to the new funding environment from 2012-13.
  • £223 million for capital funding. This is a reduction of 58 per cent compared with the £532 million in 2010-11.
  • £207 million for special funding, a reduction compared to the £330 million in 2010-11.

Read full HEFCE announcement.

We will not know how the revised teaching and research funding models will impact on us for 2011/12 until we receive our grant notification in March. We'll keep you informed.

Office of Policy & Planning
February 2011

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