Our relationship to Government

HEFCE is an arm’s-length body (ALB), accountable to the Department for Business, Innovation and Skills (BIS). This means we work within a policy framework set by the Secretary of State for Business, Innovation and Skills, but we are not part of BIS.

Working ‘at arm's length’ from Government means that ministers are ultimately responsible for our effectiveness and efficiency, and we have distinct statutory duties, but we are free from direct political control.

Every year we receive a grant letter from the Secretary of State for Business, Innovation and Skills which informs us of our total budget for the year and advises on where to direct our funding. We also provide independent advice to Government on the funding and development needs of higher education, and act as an advocate for providers of higher education, including universities and colleges.

Government holds us closely accountable for the way we work and the funds we distribute (for more information see our Accountability Framework). As part of this we publish evidence of how we spend our own budget.

Framework Document

The broad policy framework we work within is set out in the Framework Document between HEFCE and BIS. The terms and conditions under which BIS makes funds available to us so that we can carry out our duties are also set out in this document, which replaced the previous Management Statement and Financial Memorandum in December 2012.