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Executive summary

Purpose

1. This document summarises changes to our allocations of recurrent funding for the academic year 2013-14, primarily arising from adjustments to our teaching grant to reflect updated student numbers.

Key points

2. We first announced provisional allocations of grant for the year in ‘Recurrent grants and student number controls for 2013-14’ (HEFCE 2013/05). For teaching funding, we made initial allocations that were based on institutions’ forecast student numbers for 2013-14, 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 2014 accordingly, including correcting for any over- or under-payment made earlier in the academic year. These allocations will not, however, be finalised until 2015, after we receive the individualised student data for 2013-14 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 amendments, audit and reconciliation.

5. In HEFCE 2013/05 we announced a total recurrent grant for 2013-14 of £4,043 million, including £2,325 million for teaching. These total budgets remain unchanged. However, to remain within the overall budget, it has been necessary to review the scaling factor that applies in the teaching funding method. This has changed from 1.01 (which provided a 1 per cent uplift) to 0.985 (a 1.5 per cent reduction).

6. Alongside this document we are publishing:

  1. Details of our provisional recurrent grant allocations for 2014-15 (‘Recurrent grants and student number controls for 2014-15’, HEFCE 2014/05). These include initial teaching grants for the year, which will also be subject to the three-stage recalculation process.
  2. ‘Guide to funding and student number controls 2013-14 and 2014-15: How HEFCE allocates its funds and controls student numbers’ (HEFCE 2014/06), which explains how we calculate allocations for individual institutions.

Action required

7. No action is required in response to this document.

Date: 27 March 2014

Ref: HEFCE 2014/04

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

Of interest to those
responsible for:

Finance, Planning

Enquiries should be directed to:

HEFCE institutional teams or e-mail recurrentgrant@hefce.ac.uk