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Bids and applications must be returned by 1700 on Wednesday 24 September 2014.

Executive summary


1. This document sets out the arrangements for the distribution of £200 million of teaching capital funding for science, technology, engineering and mathematics (STEM) subject areas.

2. It invites higher education institutions (HEIs) and further education colleges (FECs) with STEM provision of more than 1,000 full-time equivalent (FTE) UK or European Union (EU) students to apply for the funding on a competitive basis. HEIs and FECs with fewer than 1,000 FTE UK and EU taught students, but with a minimum indicative allocation of £10,000, are invited to apply for a formulaic allocation of funding. Such institutions may instead choose to submit a bid for funding on a competitive basis.

Key points

3. On 30 September 2013, the Minister for Universities and Science announced a £200 million fund from Government, to be matched by institutions and other sources, for investment in science and engineering teaching facilities. We wrote to institutions in February (‘STEM teaching capital funding allocation’, HEFCE Circular letter 02/2014), inviting feedback on our proposed approach to distributing funding.

4. STEM teaching capital funding will be available to institutions with STEM provision in 2011‑12. The objectives of the funding are to:

  • provide new or upgraded STEM teaching facilities to meet evidenced increased demand for STEM provision
  • support an increased flow of STEM graduates into the industries that underpin the Government’s Industrial Strategy aims
  • support the Government’s aim of a wider and more representative student population across subjects.

Institutions must provide matched funding at a minimum rate of 1:1 in both the formulaic and competitive bidding processes. STEM teaching capital funding from HEFCE must be used fully in the 2015-16 financial year, although there is flexibility around the timing of the use of matched funding.

5. At this point £184 million will be allocated competitively to institutions with UK and EU taught STEM numbers exceeding 1,000 FTE. The remaining £16 million is available formulaically for institutions with fewer than 1,000 FTE but a minimum indicative allocation of £10,000, and will be released after we receive a satisfactorily completed template application demonstrating compliance with the criteria.

6. All applications are subject to assessment by an external panel of experts.

Action required

7. Eligible HEIs and FECs are invited to submit a competitive bid or application for the release of a formulaic allocation, using the relevant template (Annex D or E) and e-mailing it to by 1700 on Wednesday 24 September 2014.

8. Institutions that believe they have been incorrectly excluded from bidding or from entitlement to a formulaic allocation should e-mail as soon as possible and by Friday 25 July 2014 at the latest. Any amendments to underlying data must be processed and signed off by Friday 15 August 2014 to inform allocations of STEM teaching capital.


Report and Annexes A-C and F

Download the STEM teaching capital funding 2015-16 as PDF (274 KB) | Download the STEM teaching capital funding 2015-16 as MS Word (533 KB)

Annex D: Template for bids

Download the Annex D as MS Word (363 KB)

Annex E: Template for applications to release a formulaic allocation

Download the Annex E as MS Word (358 KB)

Date: 11 July 2014

Ref: HEFCE 2014/14

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

Of interest to those
responsible for:

Senior management, Finance, Planning, Estates

Enquiries should be directed to:

Universities and colleges should raise any questions with their HEFCE institutional contact, or e-mail