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HEFCE closed at the end of March 2018. The information on this website is historical and is no longer maintained.

Many of HEFCE's functions will be continued by the Office for Students, the new regulator of higher education in England, and Research England, the new council within UK Research and Innovation.

The HEFCE domain - - will continue to function until September 2018. At this point we will close the site entirely and all its information will only be available from the National Web Archive.


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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.

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. Section 1: Overview gives a basic summary of how we distribute funding, why we do it this way and how we ensure the money is well spent.
  2. Section 2: 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: more information is in the further reading suggested at the end of this guide.
  3. Section 3: Conditions of funding contains more detail about the requirements that institutions must abide by to receive funding from us. This includes the assurance and accountability measures that institutions must comply with to receive funding, along with other funding conditions such as medical and dental intake targets.

4. Some terms are explained in ‘jargon busters’ throughout the document, and there is an explanation of terms and abbreviations near the end.