Review of the Funding Allocation Model for higher education institutions



By Maura O'Shea

Posted: 30 January, 2017

The HEA is currently undertaking a review of the model for allocating recurrent grant funding to universities, institutes of technology and colleges. This is a critical exercise that will shape the future direction, performance and impact of higher education. The overall approach is set out in a scoping paper available here. The review will address the following terms of reference:

  • review the existing approach to funding higher education institutions by the HEA in terms of its effectiveness in delivering on national objectives; reinforcing mission diversity; ensuring sustainability and quality; and driving performance
  • identify and consider options with regard to how that approach is developed in order to reflect the principles which must underpin future funding of higher education, including the appropriate balance between the three different components of the current funding model (block grant; performance funding component; top-sliced targeted or competitive funding)
  • make recommendations on an appropriate future approach and on an implementation timeframe to protect short-term financial stability

An independent expert panel has been appointed to lead the review, chaired by Ms Brid Horan, with Ms Mary Kerr, Professor Sir Ian Diamond and Professor Philip Gummett also kindly agreeing to contribute to this important work. These members offer a wealth of national and international expertise and will work closely with the HEA and an Advisory Group to deliver the review over the first half of 2017.  Short biographies for each of the panel members are available here.

It is important that the review takes account of all views on how the funding model should develop. The HEA, on behalf of the independent Expert Panel, is seeking comments on the set of principles which should underpin the model and the features and drivers of the allocation model. In order to ensure a focused analysis of the complex issues that must be considered as part of this process, structured responses are invited to a series of questions, using the link below. There is also an opportunity to provide any additional comments of relevance to the review. To ensure that responses remain focused, a strict word count applies to each of the responses to the questions. The deadline for responses is Friday 24th February.

More: Brid Horan, Grant Funding, Ian Diamond, Mary Kerr, Philip Gummett

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