Review of price groups and fee assumptions

The outcomes of the most recent review of price groups are given in 'Review of subject price groups for 2010' (HEFCE EP 06/2010). 'Update on the teaching funding method and plans for review' (HEFCE Circular letter 24/2009) describes the outcomes of the most recent review of the fee assumption.

Review of the subject price groups using TRAC(T) data

Teaching different subjects requires different levels of resource. For instance, some subjects need laboratories and workshops while others are taught wholly in lecture theatres and seminar rooms. We have defined four broad groups of subjects for funding purposes - known as the subject price groups - and have set a relative cost weighting for each. Each academic discipline is assigned, via a cost centre, to a subject price group.

In reviewing the price groups we have used the data returned in the transparent approach to costing for teaching process (TRAC(T)). We consider both the assignment of cost centres to price groups, and the price group weightings.

We most recently reviewed the price groups in September 2010, using the TRAC(T) data for 2006-07, 2007-08 and 2008-09. We concluded that the data might support some changes in the longer term to the price group weightings and subject assignments, but that these should not be made in 2011-12. Instead, in the light of changing funding circumstances for higher education, they are being incorporated into the current long-term review of teaching funding. 

Survey of fees for postgraduate taught and part-time undergraduate students

Our teaching funding method is resource-based. This means that it takes into account a higher education institution's assumed income from fees, as well as its HEFCE grant per student. These fee assumptions reflect sector-average or regulated fee rates, and do not vary by institution. We take account of fee income because the Government plans the funding of higher education on this basis.

In May 2009 we conducted a survey, of the unregulated fees charged by institutions in 2007-08 . The results of this survey informed our review of the fee assumptions in the funding method. However, in view of the Government's review of fees and funding, and our own current long-term review of the teaching funding method, we decided to leave the fee assumption unchanged for 2010-11. The information collected through this fee survey forms part of our long-term review. 

Further information

For further information on the review of the subject price groups or the fee survey, contact  Nicholas Dibley, e-mail n.dibley@hefce.ac.uk, tel 0117 931 7414. 

Page last updated 24 October 2011