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Review of price groups and fee assumptions

We regularly review two key areas in the way we calculate funding for teaching. These are the price groups to which we assign different subjects based on their resource needs, and the assumptions we make about the income institutions receive from fees.

The outcomes of the most recent review of price groups are given in 'Review of subject price groups for 2010' (HEFCE EP 06/2010). 'Update on the teaching funding method and plans for review' (HEFCE Circular letter 24/2009) describes the outcomes of the most recent review of the fee assumption.

Review of the subject price groups using TRAC(T) data

Teaching different subjects requires different levels of resource. For instance, some subjects need laboratories and workshops while others are taught wholly in lecture theatres and seminar rooms. We have defined four broad groups of subjects for funding purposes - known as the subject price groups - and have set a relative cost weighting for each. Each academic discipline is assigned, via a cost centre, to a subject price group.

In reviewing the price groups we use the data returned in the transparent approach to costing for teaching process (TRAC(T)). We consider both the assignment of cost centres to price groups, and the price group weightings.

We most recently reviewed the price groups in September 2010, using the TRAC(T) data for 2006-07, 2007-08 and 2008-09. We concluded that the data might support some changes in the longer term to the price group weightings and subject assignments, but that these should not be made in 2011-12. Instead they will be incorporated within the future changes arising from the changing funding circumstances for higher education and the long-term review of teaching funding.

Detailed analysis of 2006-07, 2007-08 and 2008-09 TRAC(T) data

[ Adobe PDF 332K | MS Word 506K ]

Detailed analysis of 2006-07 and 2007-08 TRAC(T) data

[ Adobe PDF 186K | MS Word 447K ]

Survey of fees for postgraduate taught and part-time undergraduate students

Our teaching funding method is resource-based. This means that it takes into account a higher education institution's assumed income from fees, as well as its HEFCE grant per student. These fee assumptions reflect sector-average or regulated fee rates, and do not vary by institution. We take account of fee income because the Government plans the funding of higher education on this basis.

In August 2003, we conducted a survey of the unregulated fees charged by institutions, which informed the funding method for teaching from 2004-05. In May 2009, we repeated this survey for fees charged to students in 2007-08. The results of this survey informed our review of the fee assumptions in the funding method.

In view of the Government's imminent review of fees and funding and our own long-term review of the funding method, we have decided to leave the fee assumption unchanged for 2010-11. The information collected through this fee survey will form part of our long-term review of the teaching funding method.

Detailed summary of the 2009 fee survey data

[ Adobe PDF 68K | MS Word 231K ]

Further information

For further information on the review of the subject price groups or the fee survey, contact Philip Purser-Hallard (tel 0117 931 7030, e-mail p.purser-hallard@hefce.ac.uk).

Last updated 25 October 2010