The letter sets out the number of student places and funds for 2010-11 including the University Modernisation Fund (UMF). It is a revision to the grant letter issued to HEFCE by the previous Secretary of State on 22 December 2009. The letter follows the announcement by the Chancellor of the Exchequer on 24 May which outlined proposals for £6.2 billion efficiency savings to be made in-year across Government.
Universities and colleges will be required to contribute £200 million to this overall saving. This comprises a reduction of £118 million to the UMF and a baseline reduction to HEFCE grant of £82 million.
HEFCE has written to higher education institutions setting out the implications of the announcement including reductions to baseline grants.