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Caps fixed for voluntary giving scheme

Final cap levels for tiers 2 and 3 of the matched funding scheme have now been set.

Funding higher education in England

HEFCE is responsible for distributing public funds for higher education in England. In distributing the funds we aim to meet the needs of students, employers and the nation by promoting high quality teaching and research.

We allocate our funds using funding methods and policies that are open and transparent. Further information on our methods is available in 'Funding higher education in England: how HEFCE allocates its funds' (HEFCE 2008/33).

Information on funding for learning and teaching, research, widening participation and business and community initiatives is available. Periodically we consult with the higher education sector on proposals to modify our funding methods. Information on consultations and their results is available.

HEFCE's overall budget is set by government, so our funding method does not affect the total sum available for distribution to institutions. The annual grant letter from the Secretary of State sets out the resources and priorities for higher education. HEFCE provides advice to the Secretary of State on the funding needs of higher education in England.

Most HEFCE funding is distributed as block grants to institutions, allocated according to formulae which take account of certain factors within each institution, including the number and type of students, the subjects taught and the amount and quality of research undertaken there.

Grant announcements

Every March we announce the grant for the following academic year to each university and college that we fund. A final allocation statement is made later in the year. The final allocations for 2007-08 were stated in HEFCE 2007/32.

Provisional allocations of recurrent funding for 2008-09 are available in HEFCE 2008/12.

Final allocations for 2008-09 are available in HEFCE 2008/40.

Summary of allocations 2008-09

The total HEFCE grant available for the 2008-09 academic year is £7,476 million. A breakdown of the available grant is provided below.

Teaching £4,632 million
(of which £364 million is for widening participation)
Research £1,460 million
Business and the community £120 million
Special funding £337 million
Earmarked capital funding £902 million
(including £164 million from the science budget for the Research Capital Investment Fund)
Additional funding for very high cost and vulnerable science subjects £25 million

Notification of grants to institutions

In March each year institutions receive a set of individualised grant tables along with a grant letter and annex which give a comprehensive explanation of the contents of the tables.

The tables differ slightly for higher education institutions and further education colleges but the grant tables given below are for the sector as a whole.

Queries from institutions should be addressed to the HEFCE Higher Education Advisor for their institution. Contact details are available in our searchable staff list.

Grant letter to higher education institutions (March 2008)

[ MS Word 104K | Zipped MS Word 26K | Adobe PDF 58K | Zipped PDF 26K ]

Annex to letter to HEIs

[ MS Word 438K | Zipped MS Word 79K | Adobe PDF 353K | Zipped PDF 252K ]

Grant letter to further education colleges (March 2008)

[ MS Word 104K | Zipped MS Word 26K | Adobe PDF 58K | Zipped PDF 45K ]

Annex to letter to FECs

[ MS Word 279K | Zipped MS Word 58K | Adobe PDF 208K | Zipped PDF 150K ]

Tables showing grants for the higher education sector as a whole

[ MS Excel 251K | Zipped MS Excel 55K ]

Recurrent grants for 2008-09 by Government region

[ MS Excel 168K | Zipped MS Excel 32K ]

Breakdown of funding for teaching

[ MS Excel 218K | Zipped MS Excel 61K ]


2007-08 recurrent grant letters and summary tables are available.

2006-07 recurrent grant letters and summary tables are available.

2005-06 recurrent grant letters and summary tables are available.

Last updated 11 November 2008