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This follows the announcement on 4 June by the Chancellor of the Exchequer of a number of measures to bring down public debt in the current financial year. [Note 2] These included £3 billion in departmental savings, of which £450 million is attributable to BIS. The £150 million reduction to the HEFCE grant in financial year 2015-16 is consequent on this, and will affect both the 2014-15 and 2015-16 academic years.

We have today written to heads of HEFCE-funded institutions to explain how we propose to implement this reduction. [Note 3] The intention is to ensure that the short-term viability of institutions is not put at risk. 

Professor Madeleine Atkins, Chief Executive, HEFCE, said:

'The reductions to teaching grants, which affect this and the next academic year, will be challenging for the sector. HEFCE is doing all that we can to minimise the impact on institutions' financial viability in the short term. In implementing the reductions, we will also seek to protect the priority areas identified by the Secretary of State.

'We will continue to work closely with the sector and students to support excellence in research, learning and teaching, and a high-quality student experience.'


  1. Read the letter from BIS notifying HEFCE of the need to make savings below:
  2. Read the 4 June announcement from the Chancellor of the Exchequer announcing measures to reduce public debt
  3. Read the letter to HEFCE-funded institutions explaining how HEFCE proposes to implement savings