Summary and key documents
Allocations for the 2014-15 academic year were subject to the three-stage recalculation process.
|Final allocations (£M)||Adjusted allocations (£M)||Initial allocations (£M)|
|Capital and other non-recurrent special funding||583||583||583|
|Total HEFCE grant for 2014-15 academic year||3,849||3,886||3,883|
|Date announced||April 2016||March 2015||March 2014|
In July 2015, the Government notified us of the need to make £150 million of savings from the HEFCE teaching grant. One part of this was achieved by applying a £38 million reduction to the 2014-15 teaching grant. See our circular letter 19/2015 for details.
The three stage process
In 2012 the Government introduced changes to higher education funding. This meant that we had to calculate the funding provided to institutions in different ways.
Students who began their studies before these reforms (‘old-regime’ students) were subject to lower tuition fees. Institutions received comparatively higher rates of funding from HEFCE for these students.
Students who started after the reforms (‘new-regime’ students) paid higher fees and institutions received correspondingly lower funding from HEFCE.
Between 2012-13 and 2014-15 the balance of students in these two categories changed, which meant we had to revise our calculations each year. Teaching funding allocations were calculated and reviewed in three stages. Research funding and most targeted funding (for example, money provided to help with student opportunity) was not subject to this process.
For 2014-15, the stages for allocations were:
- Initial. Announced in March 2014, based on forecast student FTEs submitted in the 2013 HESES or HEIFES surveys.
- Adjusted. Announced in March 2015, updated the initial allocations to reflect 2014-15 student FTEs submitted in the 2014 HESES or HEIFES surveys.
- Final. Announced in April 2016, finalised to reflect end-of-year individualised student data submitted to HESA or the Skills Funding Agency.
The 'three-stage process' came to an end when we finalised allocations for 2014-15, and from 2015-16 we moved to a single set of allocations, as illustrated in the table below:
|Spring 2014||Spring 2015||Spring 2016||Spring 2017|
|Funding for academic year 2013-14||Adjusted allocations for 2013-14||Final allocations for 2013-14||-||-|
|Funding for academic year 2014-15||Initial allocations for 2014-15||Adjusted allocations for 2014-15||Final allocations for 2014-15||-|
|Three-stage process ends from academic year 2015-16 onwards|
|Funding for academic year 2015-16||-||Allocations for 2015-16||-||-|
|Funding for academic year 2016-17||-||-||Allocations for 2016-17||-|
|Funding for academic year 2017-18||-||-||-||Allocations for 2017-18*|
- Recurrent grants for 2014-15: Final allocations (October 2016)
- Recurrent grants for 2014-15: Adjusted allocations (March 2015)