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1. HEFCE distributes government funding for higher education. This guide explains how we calculate how much each university or college gets, the principles that underpin those calculations, and the components of an institution’s grant. It also explains how we set controls for the number of students that institutions may enrol, to reduce the risk that over-recruitment could create excess costs to Government in& providing student support. (Student support includes loans to meet tuition fees, and ‘maintenance’ grants and loans to support students’ living costs.)

2. This guide is intended for those working in higher education, and others who wish to understand our funding methods. It gives an introduction to those methods, but does not provide the full technical definitions and specifications used in our allocation and monitoring processes.

3. It is our practice to be open about our allocation methods and policies, and this guide is intended to explain them. It is divided into three main sections.

  1. ‘Overview’ gives a very basic summary of how we distribute funding, why we do it this way and how we ensure the money is well spent. It also gives a short introduction to how we operate our student number control.
  2. ‘Full guide to HEFCE’s funding methods’ contains more detail about each funding stream, our methods and the principles behind them. However, it does not include comprehensive technical details: our web-site provides more information, including the further reading suggested at the end of this guide.
  3. c.‘Student number control and other conditions of funding’ contains more detail about the reasons for the control we set, the populations it covers, and the method that we use for setting limits. It includes details of other funding conditions such as medical and dental targets.

4. A summary explanation of terms is included at the end of this guide for ease of reference.

Date: 9 October 2013

Ref: HEFCE 2013/25

To: Heads of HEFCE-funded further education colleges, Heads of HEFCE-funded higher education institutions, Heads of universities in Northern Ireland

Of interest to those
responsible for:

Student data, Funding, Finance, Student admissions, Planning 

Enquiries should be directed to:

HEFCE institutional teams