The major elements of the grant are:
Professor David Eastwood, Chief Executive of HEFCE, said:
'This represents a good settlement for universities and colleges. It also represents a crucial investment in developing people and ideas, and provides a major step in helping the country through and beyond the current recession.
'For teaching we have maintained the unit of resource which is key to maintaining quality and affording flexibility to institutions to invest in meeting the needs of an increasingly diverse student population. Funding for research has increased by 7.7 per cent, enabling us to build on the country's world-class research base and continue to invest in curiosity-driven research and applied research as determined by universities.
'Following the 2008 Research Assessment Exercise (RAE), we are allocating research funding selectively by reference to robust judgements of quality. We are funding research of the highest quality in whichever higher education institution and in whatever discipline it is found, but will also be seeking to establish incentives for research collaboration between institutions.
'The 2008 RAE provides the major reason for the significant variations in funding levels between 2008-09 and 2009-10. To enable institutions to manage changes in funding levels we are providing £24 million in moderation funding so no institution sees a reduction in cash terms compared with the equivalent unmoderated figure for 2008-09.
'Although this settlement provides universities and colleges with resources to help weather the economic downturn, they still face longer-term, difficult challenges and will need to plan prudently and invest selectively. I am confident that through the exceptional contribution they are making to the country's wellbeing and future prosperity they will remain a priority for public investment, enabling them to emerge from the recession with a strong sense of purpose and direction.'
Other features of the announcement are:
1. Full details of the recurrent grants and tables showing allocations to individual institutions are given in 'Recurrent grants for 2009-10' (HEFCE 2009/08).
2. These allocations are provisional; final allocations will be announced in July 2009.
3. HEFCE is directly funding 130 higher education institutions and 124 further education colleges for 2009-10. Grants for individual universities and colleges are largely calculated by formula, according to the number of students and the subject mix, and the volume and quality of research.
4. Funding is provided as block grant which institutions can spend as they choose on teaching, research and related activities.