May 2005/21 (web only)
Policy development
Progress report
This report is for information
Review of the funding method for teaching
Aims of the new method and progress of the review
This document explains the process for reviewing HEFCE's funding method for teaching, and establishes the aims of the new method.
| To: | Heads of HEFCE-funded higher education institutions Heads of HEFCE-funded further education colleges Heads of universities in Northern Ireland |
| Of interest to those responsible for: | Finance, Planning, Strategy |
| Reference: | 2005/21 |
| Publication date: | May 2005 |
| Enquiries to: | Chris Taylor tel 0117 931 7264 e-mail c.taylor@hefce.ac.uk |
Executive summary (read on-line)
Download
Report
[ MS Word 207K |
Zipped Word 62K |
Adobe PDF 122K |
Zipped PDF 94K ]
Executive summary
Purpose
1. This document explains the process for reviewing HEFCE's funding method for teaching, and establishes the aims of the new method.
Key points
2. Just over 60 per cent of our funding (£3,826 million in 2004-05) is allocated to support teaching and learning, through a funding formula. It is this formula that we are reviewing. In addition some activities, for example related to particular needs or policy aims, are funded through special initiatives, where there are restrictions on how the money is spent. We are committed to reducing the number of these special initiatives.
3. We periodically review all our funding methods to ensure they remain fit for purpose. It is important that our method for allocating funds for teaching remains relevant and robust, and reflects the HE sector as it is today and as it is likely to develop. A review is particularly appropriate at this time, given the introduction of variable fees in 2006.
4. This document establishes the aims of the new funding method and reports on progress of the review. We intend to consult on the principles and shape of the new method in autumn 2005; and then on the detail of how it will operate, in spring 2006. The earliest that we can implement any elements of a new method will be for the academic year 2007-08.
5. Underpinning all our deliberations, in terms of what the method should seek to achieve and how it will go about doing so, is the importance of considering the needs of students and the impact of any decisions on the student experience.
6. Our current strategic aims for learning and teaching and widening participation together define the purpose our teaching funding. They are:
- to ensure that all higher education students benefit from a high-quality learning experience fully meeting their needs and the needs of society
- to provide the opportunity of higher education to all those who could benefit from it.
7. The aims of the new method relate to those characteristics of learning and teaching in HE that can be susceptible to influenced by HEFCE funding. We believe that our formula funding method should help to:
- Ensure an appropriate capacity of learning and teaching in HE at a sector-wide level.
- Ensure and promote a high standard of teaching quality and academic standards.
- Enable learning and teaching in HE to respond to the diverse needs and demands of students, business and wider society.
- Enable the higher education sector to provide innovative learning and teaching opportunities
- Enable the sector to make higher education accessible to all those who could benefit from it.
- Enable the higher education sector to make the best use of public money to enhance the student learning experience.
8. We will need to address a number of issues in deciding how the method will operate. These include the relative priority of the aims; the suitability of the formula funding method for achieving them; and to what extent we can or should use the funding method to incentivise certain activities and behaviour by institutions.
Action required
9. No action is required in response to this document. We will continue discussions around these issues with sector representative bodies such as Universities UK, the Standing Conference of Principals and the Association of Colleges, as well as with the sounding board set up to advise HEFCE, and other relevant stakeholders. Further information can be obtained from Chris Taylor, e-mail c.taylor@hefce.ac.uk, tel 0117 931 7264.