Capital funding

We allocate capital funds to support the physical infrastructure of higher education (HE). These funds are designed to recognise that good-quality buildings, equipment and information technology are essential to academic excellence in teaching and research.

From 2011, we have allocated a total of £598 million in this area that will support capital investment in teaching for the financial year 2012-13, and in the case of research for the four financial years 2011-12 to 2014-15. Additionally, we will reinstate the £58 million reductions in the Teaching Capital Investment Fund applied to higher education institutions (HEIs) in 2010-11.

At this stage, however, capital funding for 2012-13 to 2014-15 is indicative only. The Government will confirm figures for these years later in future grant letters.

Capital Investment Fund (CIF) 2

In allocating our capital funds we ask that universities and colleges meet the requirements of the Capital Investment Fund (CIF). The CIF is a methodology we introduced in 2008 and which we have developed through consultation with the HE sector to inform capital allocations from 2011.

The framework aims to assess the way universities and colleges approach capital investment by asking them to demonstrate that they are:

managing their physical infrastructure as an integral part of their strategic and operational planning
ensuring that their plans in this area are environmentally sustainable.

Those institutions that meet the requirements of the CIF will receive funds directly on a grant profile in two elements: for teaching and research.

For good practice in the use of capital allocations see Annex D of our March 2011 publication on the Capital Investment Fund.

Teaching

We have now agreed to allocate £49 million through the Teaching Capital Investment Fund element of the CIF for the financial year 2012-13.

These funds are available to support learning and teaching and include £4 million for science and engineering teaching laboratories.

We will publish the allocation figures for further years of teaching capital after we have received confirmation from the Government for the financial years 2013-14 and 2014-15.

Research

We will also allocate £549 million through the Research Capital Investment Fund element of the CIF for four financial years 2011-12 to 2014-15.

We share out these funds to higher education institutions through two elements:

HEIs Research Capital (£253,216,522)
We distribute these funds according to the proportion of research income HEIs receive from Research Councils UK.
Research Capital (£296,000,000)
We distribute this element in proportion to the sum of 2010-11 HEFCE quality-related research funding and 2008-09 research income.