Introduction to Higher Education Funding Council for England
September 1996
Reference M 25/96
Mission Statement
In pursuing its mission the Council will:
- Promote high quality education and research which advances knowledge, and meets the diverse needs of students and the needs of the economy.
- Encourage in higher education a widening range of opportunities through institutions which build on their strengths at local, regional, national, and international level.
- Contribute to innovation and development in higher education through the assessment of teaching, learning and research, the funding of initiatives and research into the delivery and outcomes of higher education.
- Develop active partnerships with institutions sustained through regular consultation, transparent funding mechanisms and the prompt provision of information.
- Advise Government on the aspirations and needs of higher education and contribute to public information on the achievements and opportunities provided by higher education; in doing so take account of international experience.
- Build partnerships with other bodies engaged in education and research in the UK and abroad, and with employers.
- Promote good management, effective accountability for public funds and value for money, both within higher education institutions and in the Council's own practices.
Introducing the Higher Education Funding Council for England
The HEFCE
The HEFCE was established on 6 May 1992 under the Further and Higher Education (FHE) Act 1992. The HEFCE is a non-departmental public body operating within a policy and funding context set by the Government.
The Council assumed responsibility for funding higher education in England on 1 April 1993, succeeding the Universities Funding Council and the Polytechnics and Colleges Funding Council.
The Council's main functions are to advise the Secretary of State for Education on the funding needs of higher education institutions in England and to distribute available funds.
The Council funds education, research and associated activities at a total of 136 institutions of higher education - 72 universities, 16 directly-funded schools of the University of London, and 48 colleges of higher education. It also funds prescribed courses of higher education at 74 further education colleges, who receive their main public funding from the Further Education Funding Council.
The HEFCE is the largest single source of funding for higher education in England. Funds are provided in exchange for teaching and research and are conditional on their delivery.
The Council will distribute £3,319 million to support teaching and research, for the period 1 August 1996 to 31 July 1997. Funds for teaching and research are allocated by formulae and are distributed as block grant, which institutions can spend at their own discretion.
The Council is currently consulting the higher education sector about proposed changes to the funding methods. Once agreed, they will be published so that they can provide institutions with a fair and open basis for planning.
The Council also allocates capital funding which in 1996-97 will total £290 million. Capital funding covers equipment and estate projects, including backlog maintenance.
Accountability
The formal relationship of the Council with the Department for Education and Employment is set out in a Financial Memorandum and a Management Statement.
The Secretary of State for Education and Employment is accountable to Parliament for the HEFCE's activities. Parliament also exercises oversight and scrutiny of the Council through the Comptroller and Auditor General, the head of the National Audit Office. The Comptroller and Auditor General is responsible for auditing the HEFCE's accounts and for examining the economy, efficiency and effectiveness of the HEFCE's use of resources.
The HEFCE's Chief Executive is the Accounting Officer for the funds made available to the Council by the Secretary of State. As Accounting Officer, the Chief Executive is required from time to time to appear before the Public Accounts Committee of the House of Commons.
The HEFCE operates a policy of openness and transparency in its dealings with higher education institutions. Allocations to institutions are published in detail, and the underlying data are provided by and verified by the institutions.
Responsibilities
Members of the Board, including the Chairman and Chief Executive, have collective responsibility for the control and management of the HEFCE as a corporate body. The Board is responsible for developing policies and ensuring that projects, programmes and activities undertaken by the HEFCE are consistent with the overall provisions of the FHE Act and any guidance or directions issued by the Secretary of State.
Structure
The Council employs around 190 staff at its headquarters in Bristol. The directorate consists of the Chief Executive and four directors.
Staff in the Council's Institutions and Programmes Division (IPD) provide the main point of contact with institutions.
Relationships with Other Bodies
The HEFCE works closely with the other higher education funding bodies in the UK, the Teacher Training Agency and the Further Education Funding Council. The Council regularly consults with the institutions' representative bodies and collaborates with them and the other funding bodies on a number of joint initiatives.
The Council provides advisory services to the Department of Education Northern Ireland (DENI), the Northern Ireland Higher Education Council (NIHEC), and the Department of Agriculture for Northern Ireland (DANI). The relationship between the HEFCE, DENI and DANI is set out in a service level agreement between the three bodies.
The Council also consults and maintains relations with a large number of other bodies, including the Committee of Vice-Chancellors and Principals and the Standing Conference of Principals, the Higher Education Quality Council, the Research Councils, subject associations, learned societies and professional bodies.
HEFCE Board Members
- Chairman
- Mr Brandon Gough
- Director, Yorkshire Water plc
- Director, National Power plc,
- Director, De La Rue plc
- Chief Executive
- Professor Brian Fender
- Members
- Mrs Joan Bingley, Chartered Secretary
- Professor Sir John Cadogan, Director General, Research Councils
- Professor Sir Colin Campbell, Vice-Chancellor, University of Nottingham
- Mr Michael Fallon, formerly Parliamentary Under Secretary of State for Education
- Mr Anthony Booth CBE, Chairman, Ericsson UK Ltd
- Professor Kay-Tee Khaw, Professor of Clinical Gerontology, University of Cambridge
- Dr David Fussey, Vice-Chancellor, University of Greenwich
- Ms Barbara Stephens, Chief Executive, West Cumbria Development Agency
- Dr John Strickson, Principal, North East Surrey College of Technology
- Dr Rab Telfer, Chairman, Board of Governors, University of Teesside, formerly Chairman, BSI Standards
- Miss Janet Trotter, Director, Cheltenham & Gloucester College of Higher Education
- Professor Sir Stewart Sutherland, Principal and Vice-Chancellor University of Edinburgh
- Assessor
- Mr Roger Dawe, Department for Education and Employment
- Secretary to the Council
- Dr Rob Hull
- Observers
- Professor John Andrews, Chief Executive, Higher Education Funding Council for Wales
- Mr Peter Holmes, Under Secretary, Department of Education Northern Ireland
- Professor John Sizer, Chief Executive, Scottish Higher Education Funding Council
The remainder of the printed version of this document contains a list of names and addresses of the higher education institutions funded by the Council. They are available on the Council's Web site at: