Reprofiling of learning and teaching grant for the 2007-08 academic year

To:

Heads of HEFCE-funded higher education institutions

Dear Vice-Chancellor or Principal

1.   This letter announces a change to the profile of basic grant for learning and teaching for the 2007-08 academic year. We will be distributing an additional £27.5 million across all HEIs in March 2008 and will reduce profiled payments in July 2008 by the same amount.

2.   Since 2006-07, payments for tuition fees from the Student Loans Company began to be paid in two tranches (February and May). This was a change from previous years, where publicly funded tuition fees were payable in full in February, and could have an adverse impact on higher education institutions' (HEIs') cash flow. The impact is mitigated to the extent of additional income from variable tuition fees.

3.   As we received no additional funding to enable us to compensate for this change, we were unable to announce any change in profile of our core funding when funding for 2007-08 was announced. However, the finalisation of holdback for 2007-08 now enables us to adjust the profile of core funding for learning and teaching. While this is only a small amount of funding (less than 1 per cent of core funding for learning and teaching) 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 2007-08 academic year, but details of the payment will appear on the March 2008 remittance advice. If HEIs wish to know the amount ahead of this or the change to the July 2008 profiled payment they should contact Karen Becker at k.becker@hefce.ac.uk.

Yours sincerely

Steve Egan
Deputy Chief Executive

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