The review of exceptional funding for institutions

In early 2008 we began a review of exceptional funding allocated to 20 institutions through an institution-specific targeted allocation. The aim of the review was to ensure that this funding is distributed transparently and according to clear principles.

Principles of exceptional funding

The review arrived at a set of principles that should govern the future allocation of exceptional funding. These were reported to the HEFCE Board in July 2008.

Broadly, an institution should receive exceptional funding only if:

it engages in activities which produce additional public value over and above that produced by other institutions not in receipt of the funding
these activities incur additional costs which could not be met from other funding streams.

Changes to funding agreed as a result of the review will take effect no earlier than 2009-10.

Outcomes

The following institutions will continue to receive exceptional funding, through an institution-specific targeted allocation, at approximately 2008-09 levels:

Central School of Speech and Drama
Conservatoire for Dance and Drama
Courtauld Institute of Art
University College Falmouth
Harper Adams University College
Leeds College of Music (subject to ongoing discussions with the College about the cost and shape of its provision)
Liverpool Institute of Performing Arts
London School of Hygiene and Tropical Medicine
Rose Bruford College
Royal Academy of Music
Royal Agricultural College
Royal College of Art
Royal College of Music
Royal Northern College of Music
School of Oriental and African Studies
Trinity Laban Conservatoire of Music and Dance

Two institutions will see reductions in their exceptional funding through an institution-specific targeted allocation:

The Institute of Education will receive exceptional funding through an institution-specific targeted allocation at approximately the current level in 2009-10, but at a reduced level from 2010-11 onwards.
Cranfield University will receive exceptional funding through an institution-specific targeted allocation at a reduced level, to be phased in from 2009-10.

Two institutions will no longer receive any exceptional funding through an institution-specific targeted allocation:

Institute of Cancer Research
London Business School

In 2009-10 and 2010-11, exceptional funding provided through an institution-specific targeted allocation will be subject to the same inflationary uplift as the mainstream teaching grant.

These changes will be reflected in the July editions of the institutions' 2009-10 grant tables.

We will review levels of exceptional funding again in 2013, if not before.

Process

The review was advised by a group chaired by Dame Janet Ritterman. All institutions that the review considered were invited to submit a case for receiving exceptional funding in the future. The advisory group discussed these, and made recommendations to the HEFCE Board, which in December 2008, took decisions about future exceptional funding levels for each institution.

The institutions that will continue to receive exceptional funding have agreed to publish their written submissions to the review on their web-sites in August 2009.

The following document set out the guidance we provided to institutions who submitted a case and the terms of reference for the advisory group.