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We calculate teaching funding by using a formula. We allocate these funds annually which takes the form of ‘recurrent funding’. 

This means that we use data which institutions return to us about the details of their students and courses to inform and revise our funding allocations. With each data return we revise our calculations to inform the final teaching grant for each institution.

Recurrent funding for teaching comprises a main element informed by student numbers in different subject areas, plus a number of other allocations that reflect particular additional costs affecting certain types of provision. 

Priority areas

We have a fixed budget to support teaching which focuses on priority areas where tuition fees alone may not meet all costs.

This covers:

  • Funding for high-cost subjects (We identify these subjects through ‘price groups’. This funding will be provided to those subjects that are currently in price groups A, B and C1).
  • Funding to support very high cost STEM subjects
  • Taught postgraduate courses to ensure this provision is not adversely affected by the changes in student-led finance.
  • Flexible learning: part-time and alternative modes of study
  • Additional funding for providers operating in London
  • A Student Opportunity allocation to help ensure successful outcomes for students, particularly those from disadvantaged backgrounds, and to widen participation and improve social mobility.
  • Funding for providers with distinctive provision (those typically specialist providers with distinctive provision providing additional public value)
  • Strategically important subjects

Page last updated 6 February 2015