Higher education in further education colleges: HEFCE's funding powers: Prescribed courses of higher education

August 2008 | ref: Circular letter 22/2008

To:

Heads of HEFCE-funded further education colleges, Heads of HEFCE-funded higher education institutions

Dear Vice-Chancellor or Principal

Prescribed courses of higher education

1. This letter explains HEFCE's funding powers for further education colleges (FECs) and, in particular, why we are generally unable to offer direct funding to colleges for individual higher education modules.

2. We are only able to fund FECs directly for prescribed courses of higher education. Our direct funding powers towards FECs are set out in the following primary and secondary legislation:

The Further and Higher Education Act 1992, section 65(2)(c), defines the activities eligible for funding by HEFCE at FECs as being the provision of prescribed courses of higher education.
These prescribed courses are specified in the following two statutory instruments:
1. The Education (Prescribed Courses of Higher Education) (Wales) (Amendment) Regulations 1998 (SI 1998/1970). These regulations extended to England the definition that already applied in Wales, set out in:
2. The Education (Prescribed Courses of Higher Education) (Wales) Regulations 1993 (SI 1993/481).

3. Taken together, the primary and secondary legislation means we are responsible for funding courses at FECs on which the students are aiming for the following higher education qualifications, where these are awarded by a recognised body:

higher degrees (such as masters)
postgraduate diplomas
Postgraduate Certificates of Education
first degrees (BA, BSc, BEd and foundation degrees)
foundation degree bridging courses
Higher National Diploma and Certificate
Diploma in Higher Education
Certificate in Education
Diploma in Teaching in the Lifelong Learning Sector.

4. A student must be signed up for the whole qualification if he/she is to meet the definition of prescribed higher education. A student who has only signed up for a module cannot be described as being on, for example, an HNC or HND course where completion of the module does not in itself lead to the award of those qualifications.

Indirect funding to FECs through an HEI

5. Although the definition of prescribed courses of higher education exists solely for the purpose of defining what HEFCE and HEFCW are empowered to fund at further education colleges, it does not define what we can fund at higher education institutions (HEIs), where our funding powers and responsibilities are wider. This means that where students are registered with an HEI, but some or all of their teaching is delivered through a sub-contractual arrangement with an FEC (commonly known as a 'franchise' arrangement) we are able to fund higher education modules through the HEI, which we could not fund directly at the FEC. This is because the student is a student of the HEI rather than of the FEC.

6. However, the exception described in paragraph 5 does not apply to HEFCE-recognised funding consortia, where students are students of the consortium member rather than the lead institution. This means that the limits on what we can fund at FECs through such consortium arrangements are the same as if we were funding the FECs directly.

Review of our funding method for teaching

7. As part of our review of our funding method for teaching, we are exploring how we can recognise the costs of teaching students who complete something other than their initial study intention for the year. In consequence, while it may be open to us to fund modules completed by a student aiming for, but not completing, a whole higher education qualification, it does not mean that the population we count for funding purposes will change.

Legislation

8. Details of the primary and secondary legislation that established HEFCE's funding powers to FECs can be found on the Office of Public Sector Information web-site as follows: