January 2007/02
Core funding/operations
Consultation

Responses should be made online by Thursday 5 April 2007

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Review of the teaching funding method

Second consultation on changes to the method

This is the second consultation on our plans for changing the method for allocating HEFCE funds for teaching.

Outcomes of the consultation (July 2007)

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To:	Heads of HEFCE-funded higher education institutions Heads of HEFCE-funded further education colleges Other relevant stakeholders
Of interest to those responsible for:	Senior management, Finance, Governance
Reference:	2007/02
Publication date:	January 2007
Enquiries to:	Chris Taylor tel 0117 931 7264 e-mail c.taylor@hefce.ac.uk Anna Sherratt tel 0117 931 7236 e-mail a.sherratt@hefce.ac.uk

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Executive summary (read online)

Frequently asked questions

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Executive summary

Purpose

1.   This consultation seeks agreement to a number of proposed alterations to our main formula funding method for teaching.

Key points

2.   Our review of the funding method began in 2005. The proposals in our first consultation were based on our understanding of the emerging funding context facing the HE sector over the current strategic planning period (2006-11) and into the next (2009-14), and on how we believed our funding method should respond to the challenges these periods may bring.

3.   We proposed a range of developments to the method to respond to this changing context. Some of these proposals received a clear response and we have made decisions accordingly. Others required further exploration with the sector and are the focus of this consultation document:

1. Assumptions about income that contributes to the overall resource for teaching (paragraphs 14-21).
2. Development of a system of targeted allocations (paragraphs 22-57).
3. Recognising flexible study patterns (paragraphs 59-70).
4. Further application to teaching of the Transparent Approach to Costing (paragraphs 71-84).

Action required

4.   Responses to this consultation should be made by Thursday 5 April 2007, using the online form.

5.   We will be holding events to discuss the issues in this document. These will be half-day events on 7 and 8 March in London and 14 and 15 March in Leeds. Invitations have been sent to the heads of all directly-funded institutions and relevant stakeholders. Places are limited so early booking is advisable.

6.    We are aware that many of the issues are complex. We will therefore be publishing answers to frequently asked questions (FAQs) on the web, which will be built on as the consultation progresses. If you have any queries, please contact Chris Taylor on c.taylor@hefce.ac.uk to help us make this FAQ section as useful as possible.