Higher Education Funding Council (HEFC) methods in the 1990s: national and regional developments and policy implications

The Higher Education Funding Councils (HEFCs) were established to implement a devolved higher education funding policy. Over the 1990s, HEFC funding methods evolved to reflect government aims of expanding student places and reducing unit costs, while increasing equity, access and competition as well as teaching and research quality. This analysis tests the achievement of Funding Council methods and resulting block grant allocations against these goals. While research funding became more influenced by Research Assessment Exercise scores, student numbers continued to be a main force in the allocation of teaching grants. Despite variations in allocations between regions and institutional types, HEFC funding methods reinforced research and teaching funding differences between institutions.