University Modernisation Fund

The University Modernisation Fund was set up in 2010 to tackle two issues: it aimed to enable more young people to enter higher education, while also supporting universities (and colleges) to increase efficiency and reduce cost over the medium term. During 2010 we administered this special initiative and asked institutions to prioritise demand in strategically important and vulnerable subjects.

About the fund

The University Modernisation Fund was a £152 million initiative designed to support a sustained increase in student places at universities and colleges in a period of economic recovery by adopting greater savings and efficiencies.

The fund was used to:

contribute £132 million to support 10,000 extra student places in 2010-11, 8,000 full time and 2,000 part-time
provide £20 million to encourage universities and colleges to adopt efficiencies and savings through shared services and other innovative practices that will allow them to cover the cost of student places in subsequent years.

Allocation of new entrants through the University Modernisation Fund

Download the Allocation of new entrants through the University Modernisation Fund as MS Excel Spreadsheet (27 KB)

Original invitation to submit proposals to the fund (April 2010)
Details of the shared services pilot scheme through the University Modernisation Fund (April 2010)

Sector impact assessment: University Modernisation Fund

In developing the University Modernisation Fund, we have undertaken a formal assessment of the impact it will have on the HE sector in terms of regulatory burden, equality and diversity, and sustainable development.

Sector impact assessment: University Modernisation Fund

Download the Sector impact assessment: University Modernisation Fund as PDF (69 KB) | Download the Sector impact assessment: University Modernisation Fund as MS Word (65 KB)

Strategically important and vulnerable subjects

The University Modernisation Fund built on a separate initiative we launched to shift the balance of institutions' provision towards vulnerable science, technology, engineering and mathematics (STEM) and modern languages subjects.

This was originally announced in our 2010-11 announcement of grant to universities and colleges following advice given in the 2009 report of HEFCE's advisory group on strategically important and vulnerable subjects (SIVS).

Following a bidding process for a share of almost £4 million to cover the costs of teaching more students in those subjects, 1,712 full-time equivalent places were moved in 2010-11.