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14 March 2007 HEFCE logo
To  Heads of HEFCE-funded higher education institutions
Direct Line 0117 931 7300
Direct Fax 0117 931 7203

Circular letter number 07/2007

For further information contact Ian Lewis, tel 0117 931 7336, e-mail i.lewis@hefce.ac.uk

Dear Vice-Chancellor or Principal

Reprofiling of learning and teaching grant for the 2006-07 academic year

1.   This letter announces a change to the profile of basic grant for learning and teaching for the 2006-07 academic year. We will be distributing an additional £7 million in March 2007 and will reduce profiled payments in July 2007 by the same amount.

2.   From this academic year, payments for tuition fees from the Student Loans Company are paid in two tranches in February and May 2007. This is a change from previous years, when publicly funded tuition fees were paid in full in February, and has an adverse impact on the cash flows for higher education institutions (HEIs). The impact is mitigated to the extent of additional income from variable tuition fees.

3.   We have received no additional grant to enable us to compensate HEIs for this change in their profile of the total funding, so were unable to announce any change in the profile of our core funding when grants for the academic year 2006-07 were announced. However, the finalisation of holdback for 2006-07 now enables us to adjust the profile of core funding for learning and teaching. While this is only a small amount of money, it goes some way to offset the cash flow impact of changes in payments for tuition fees.

4.   We do not intend to re-issue grant profiles for the remainder of the 2006-07 academic year, but details of the payment will appear on the March 2007 remittance advice. If HEIs wish to know the amount before this, or the change to the July 2007 profiled payment, they should e-mail Karen Becker.

Yours sincerely

Professor David Eastwood
Chief Executive