To:

Heads of HEFCE-funded higher education institutions

Of interest to those responsible for:

Planning, Finance

Dear Vice-Chancellor or Principal

Changes to recurrent grant for 2010-11

1.   This circular letter sets out the changes to 2010-11 recurrent grant for each institution arising from the reductions of £122 million to teaching grant and £27.6 million to research grant that were announced in February. We do not require a response.

2.   'Funding for universities and colleges for 2010-11 and 2011-12' (HEFCE Circular letter 05/2011) announced that, because of cash reductions to our funding from the Department for Business, Innovation and Skills in the 2011-12 financial year, it was necessary to reduce our allocations to institutions that we had previously announced for the 2010-11 academic year, as there is a four-month overlap between the two. Our Board therefore decided that:

1. Previously announced allocations of recurrent teaching grant, with the exception of those for widening participation (WP) and improving retention, would be subject to a pro rata reduction of £122 million (approximately 2.8 per cent).
2. Previously announced allocations of recurrent research funding for 2010-11 will be subject to a pro rata reduction of £27.6 million (approximately 1.7 per cent).
3. Moderation funding for 2010-11 will not be recalculated to take account of these pro rata reductions to teaching and research grant.

3.   Annex A sets out the consequent changes for each institution.

4.   The final reduction to teaching grant is −2.81095 per cent, and has been applied to all elements of teaching grant (other than WP and improving retention) after incorporation of grant adjustments arising in the year from institutions' student numbers in 2010-11 (as set out in Caroline Charlton's letter of 11 February 2011) and recent changes agreed following data audit and reconciliation. This does not, however, include any grant adjustments arising from institutions' recruitment against the 2010-11 student number control limit.

5.   The reduction to research grant is −1.72177 per cent.

6.   If further changes to an institution's 2010-11 grant arise as a result of our monitoring of its underlying data, these percentage reductions will also be included where appropriate. This applies in particular to grant adjustments arising from our monitoring later this year of 2010-11 employer co-funded student numbers and any other data audit or reconciliation work that has not yet been resolved.

7.   Any questions about this letter should be addressed to HEFCE institutional teams.

Yours sincerely

Sir Alan Langlands
Chief Executive

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