Teaching funding for 2012-13

Presented by:

Anna Sherratt, Senior Learning & Teaching Policy Adviser

Toby West-Taylor, Head of Funding

Estimated teaching grant 2012-13£3,228M

Phase out of mainstream T

grant £2,475M, 57%

Withdrawal of T grant -£1,111M,

-26%

WP £369M, 8%

Other targeted allocations £271M, 6%

Introduction of funding for high

cost subjects £113M, 3%

Three elements of teaching grant in 2012-13

• The phase-out of 2011-12 mainstream teaching

grant

• Applies to all categories of student, not just

those subject to regulated fees and student

support

• Targeted allocations, including for WP

• The introduction of funding for new regime students

in high cost subjects

• With lower rates of funding

The phase out of mainstream funding for old-regime students (1)

Our aim for the phase out is to have an approach that:

• Is transparent

• Is fair and auditable

• Is recognisable, reflecting as far as possible the parameters and measures previously used to calculate the 2011-12 funding that is being phased out

• Does not introduce extensive new data collection processes

• Minimises instability, by ensuring rates of funding reflect current levels of grant and student numbers

The phase out of mainstream funding for old-regime students (2)

• Elements that will look familiar:

• Same concepts of price groups, modes, levels etc.

• Provisional allocation announced in advance, with adjustments arising from subsequent HESES/HEIFES and HESA/ILR data returns

• But some fundamental conceptual differences:

• No baseline rolling forward from previous year

• No tolerance band

• Fewer funding agreement targets: instead, HESES/HEIFES and HESA/ILR used to recalculate allocations from first principles

The phase out of mainstream funding for old-regime students (3)

• Funding rates based on 2011-12 funding and

student population

• Institutional rates by price group, mode and

level incorporating London and partial

completion weightings and tolerance band

positions

• Initially derived from HESES/HEIFES11; revised

using HESA/ILR data for 2011-12

Funding rates x student volume x scaling factor

The phase out of mainstream funding for old-regime students (4)

• 2012-13 Old-regime student volume:

• Initial allocation announced in March 2012 will be like a payment on account, based on 2012-13 student numbers forecast in HESES/HEIFES11

• Revised allocation announced in March 2013, based on HESES/HEIFES12 student numbers and revised funding rates using HESA/ILR data for 2011-12

• Final confirmation in 2014 reflecting 2012-13 HESA/ILR student volumes

Funding rates x student volume x scaling factor

The phase out of mainstream funding for old-regime students (5)

• Scaling factor:

• Necessary to ensure we remain within budget available

• May be recalculated as part of revisions to allocations arising from updated data

Funding rates x student volume x scaling factor

The phase out of mainstream funding for old-regime students (6)

• We want funding to be phased out reflecting as closely as possible the numbers of old-regime students that are continuing

• We need to revise allocations as we get increasing certainty about student numbers

• We want to avoid some institutions getting an unfair advantage at the expense of others through submission of unrealistic forecasts or inaccurate data

• Data quality will be key and we will be strengthening our verification and audit processes

Why are recalculations necessary?

Consultation question 1

“Following the changes to

funding for higher education

agreed by the Government, we

need to phase out the

mainstream teaching funding

relating to old-regime students.

Do you have any comments on

our proposed approach?”

Non-mainstream funding: targeted allocations (1)

• Allocations we expect to continue in 2012-13:

• Funding for widening participation and

improving retention (£369M)

• Institution-specific targeted allocation (£47M)

• Accelerated & intensive provision (£41M)

• Additional funding for very high cost &

vulnerable science (£23M)

• Clinical consultants’ pay (£18M), senior

academic GPs’ pay (£1M) and NHS

pension scheme compensation (£6 million)

Non-mainstream funding: targeted allocations (2)

• Allocations that are “special cases” in 2012-13:

• Funding for co-funded employer engagement

will be phased out in a way that mirrors

mainstream teaching grant

• Part-time undergraduate targeted allocation will

have a reduced total budget (£52M) as we

phase out over two years the sum that was

added from 2009-10 arising from the ELQ policy

• A new targeted allocation to enable us to

continue to provide Erasmus fee

compensation to continuing students in

2012-13 and 2013-14 (£10M)

Non-mainstream funding: targeted allocations (3)

• Allocations to be phased out in two equal

instalments from 2012-13 (showing 2011-12

budgets):

• Maintaining capacity in SIVS - ELQ

funding(£28M)

• Research-informed teaching (£9M) and

institutional learning and teaching strategies

(£28M) within TESS

• Transitional funding for ELQ students (£22M in

2011-12) will continue to be phased out as

previously planned

Consultation question 2

“Given the reductions to

HEFCE’s teaching grant from

2012-13, do you have any

comments on our proposal that

certain non-mainstream

allocations should be phased

out, and others continued as an

interim measure in 2012-13?”

Funding for new-regime students in high cost subjects for 2012-13

• For 2012-13, relates only to students in price groups A and B

• Lower rates of grant

• No tolerance band

• Only variation in funding rates by institution is for London weighting

• Same iterative process of updating allocations as 2012-13 new-regime student numbers are updated

• We reserve the right not to count numbers recruited in excess of medical and dental intake targets or student number control limits

Indicative income for new-regime full-time undergraduates

Basic rates excluding London weighting

HEFCE Price

Group A

HEFCE Price

Group B

HEFCE Price

Group C

HEFCE Price

Group D

Old regime (up to 2011-12 entry)

HEFCE teaching grant £13,335 £4,894 £3,426 £2,325

Regulated fee £3,375 £3,375 £3,375 £3,375

Total (2011-12 prices) £16,710 £8,269 £6,801 £5,700

New regime (from 2012-13 entry)

Approximate HEFCE

teaching grant

£10,000 £1,500 0 0

Maximum regulated fee £6,000 - £9,000 £6,000 - £9,000 £6,000 - £9,000 £6,000 - £9,000

Total (2012-13 prices) £16,000 - £19,000 £7,500 - £10,500 £6,000 - £9,000 £6,000 - £9,000

These rates do not include non-mainstream teaching funding

Consultation question 3

“Following government changes to

funding for higher education, we

need to change the way HEFCE

provides teaching grant for new-

regime students. Do you have any

comments on our proposed

approach for 2012-13?”