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HEFCE press release

18 November 1998

HEFCE proposes more flexible approach to funding HE in further education colleges

A consultation document issued today by the Higher Education Funding Council for England (HEFCE) proposes new flexible arrangements for funding higher education courses in further education colleges (FECs).

From 1999-2000 the HEFCE will take over responsibility for funding all degrees, Higher National Certificates and Higher National Diplomas, undergraduate and postgraduate level provision currently funded by the Further Education Funding Council.

Mr Brian Fender, Chief Executive of the HEFCE, said: "Further education colleges have a vital role to play in the development of a higher education system that meets the growing demands of the learning society, and increases opportunities for students from disadvantaged backgrounds to participate in HE. They have also developed a range of distinctive provision in response to local and employer needs.

"Under the proposed new approach, we aim to help colleges choose funding arrangements that will bring the most benefits to students - for example, by widening the choice of courses in a region, improving progression routes to higher education, and enhancing the quality of the learning experience."

At present, some FECs providing HE courses are funded directly by the HEFCE; some receive HEFCE funds indirectly through franchising arrangements with a higher education institution; and some are directly funded by the Further Education Funding Council.

Key features of the proposed new funding approach are that it should:

  • contribute to widening participation in HE and the promotion of high standards
  • encourage collaboration and partnerships between colleges, and between colleges and universities, to develop a more comprehensive strategic approach to meeting student demand
  • maintain both direct and indirect (franchised) funding routes for providing higher education courses in FECs
  • where provision is franchised, regulate the arrangements to ensure that all students in higher education have an experience of comparable quality.

Responses to the consultation are requested by 1 February 1999. The Council aims to introduce the new funding arrangements for the 2000-01 academic year.

ENDS

For further information contact Helen Buttery on (0117) 931 7125 or Roger Grinyer on (0117) 931 7307

Notes to Editors

  1. The Dearing Report recommended that the HEFCE should be responsible for funding all HE provision in FECs. The Government has agreed that the HEFCE should become responsible for funding HNCs, HNDs, and undergraduate and postgraduate level provision.
  2. The HEFCE currently provides direct funding to 72 FECs for 30,000 HE students. From 1999-2000 it will be responsible for around an extra 200 FECs.
  3. The consultation refers to the findings of two research reports: 'The nature of higher and further education sub-contractual partnerships' (ref HEFCE 98/58) and 'Study of the relative costs of higher education provision in further education colleges and higher education institutions' (HEFCE 98/57). The key conclusions are summarised in the annexes to the consultation document. Full copies of the consultation (HEFCE 98/59) and both research reports are available on this web site, and directly from the HEFCE.

HEFCE 14/98

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