1. This document summarises changes to our allocations of recurrent funding for the academic year 2012‑13, primarily arising from adjustments to our teaching grant to reflect updated student numbers.
2. We first announced provisional allocations of grant for the year in ‘Recurrent grants and student number controls for 2012-13’ (HEFCE 2012/08). For teaching funding, we made initial allocations that were based on institutions’ forecast student numbers for 2012-13, but explained that these would be recalculated as we received information on the actual numbers of students in the year. This document shows, for each institution, how some of those teaching allocations have now been adjusted to reflect the updated student numbers recently reported by institutions. We will adjust grant payments between April and July 2013 accordingly, including correcting for any over- or under-payment made earlier in the academic year. These allocations will not, however, be finalised until 2014, after we receive the individualised student data for 2012-13 at the end of the academic year.
3. This three-stage recalculation process enables us to announce funding in advance of the academic year, before student numbers are known, but ensures that allocations eventually reflect the actual student numbers at each institution in the year. This is necessary so that grants to institutions are adjusted in line with the changing balance of their student numbers between those who entered before, and those who entered on or after, the change to the regulated fee regime on 1 September 2012. Institutions receive higher rates of HEFCE grant for the former than for the latter.
4. Some of the allocations of teaching grant are not subject to this three-stage recalculation process, because they are based on student numbers for earlier years, or are fixed allocations per institution. They, and the recurrent grants for research and knowledge exchange, have not been recalculated, except in a small number of cases to reflect the outcomes of data audit and reconciliation.
5. In HEFCE 2012/08 we announced a total recurrent grant for 2012-13 of £4,921 million, including £3,213 million for teaching. The revised total recurrent grant announced in this publication is £4,941 million. The additional £20 million is attributable to teaching grant, and arises because a 1 per cent reduction in funding that was applied in our original calculations last year has been removed for those elements of teaching grant that are subject to the three-stage recalculation process.
6. We are also publishing alongside this document details of our provisional recurrent grant allocations for 2013-14 (‘Recurrent grants and student number controls for 2013-14’, HEFCE 2013/05). These include initial teaching grants for the year, which will also be subject to the three-stage recalculation process.
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