Dear All,
Further to John Wieczorek's query, I copy below a UCML briefing paper on HEFCE funding which deals with the Year Abroad. The paper was presented at the last UCML Plenary in January. It includes a section on what UCML is pressing HEFCE to do, and it gives some suggestions about what individual depts/schools of modern languages might do. Sorry it is a bit long for an emai, but the system does not seem to accept attachments
Best wishes.
Roger Woods
Chair, University Council of Modern Languages 
....................................................................................
January 2005


UCML Briefing Document on HEFCE Funding for Modern Languages


The Issues

Individual universities are not obliged to mirror the HEFCE funding formula for individual subjects, but where the HEFCE formula and an individual university's formula differ and the latter contributes to creating a deficit for a particular Languages School or Department these schools and departments may find it useful to understand  the HEFCE formula for languages when dealing with their own institution. There are indications that schools of modern languages are perceived as deficit schools in most universities. This makes them vulnerable in times when funding is tight, even if the perception is partly the result of individual universities' funding formulae varying from the HEFCE formula. Understanding the formula is not likely to yield more resources for languages, but it may well strengthen the position of languages if departments can remind their institutions just what income they receive for languages in their block grants. 

HEFCE is showing signs of taking a more hands-on approach to funding for subjects that are experiencing difficulties if those subjects are regarded as of strategic national importance. For this reason it is important that HEFCE should be aware of the consequences of any large-scale deviation from its funding formula. Charles Clarke's letter to HEFCE seeking advice on how to protect such subjects refers to less widely taught languages and area studies of the accession countries of Eastern Europe as subjects of strategic national importance.

In the run-up to the introduction of variable (= higher top-up) fees in September 2006 it is important to know how individual universities intend tackling fees for languages, especially during the year abroad (YA). The choices for universities include:
*       charging students working or teaching 50% of the variable fee for the YA, and not  charging Socrates/Erasmus students  
*       freezing fees for the YA at current levels
*       offering bursaries (on a means-tested basis) and scholarships (on the basis of academic excellence)  to offset higher fees in particular subjects.
*       opting for a combination of the above

 
 
 The HEFCE Formula 

Standard resource and assumed resource HEFCE operates with the concepts standard resource and assumed resource, the former being a 'notional calculation of what the institution would get if grant was calculated afresh each year', the latter being 'based on the teaching grant that we actually paid to the institution for the previous year, adjusted for various factors such as inflation, plus our assumptions of student tuition fee income'.  If the assumed resource is within 5% of the standard resource, an institution's HEFCE income will not change. Although languages moved from Band D to Band C this 'tolerance band' calculation meant that most universities did not receive extra HEFCE income.

The HEFCE formula currently calculates the standard resource for a languages student at £4529 (Price Group C). This is 1.3 x the unweighted Base Price (Price Group D) of £3484. HEFCE provides 'T Funding' of £3379 per student and assumes the university will receive tuition fee income of £1150 from the student (giving the total of £4529).

Changes in the band ratios From 2004/05 the weightings of the funding Price Groups changed, with Price Group C dropping from 1.5 times the Base Price to 1.3. The reduction in the weighting was offset by an increase in the 'Base Price' from £2808 to £3484. This represented an increase in HEFCE funding per student: under the old model it was around £4212 (ie £3484 x 1.5). Some universities have made the adjustment to the weighting but not to the Base Price, and this has resulted in a drop in standard resource for their language depts.  

The Year Abroad It is important for departments/schools to understand funding for students during the year abroad. A lot of attention is paid to income from top-up fees, but under the current arrangements a larger sum per student comes from HEFCE. Students on the year abroad are classified for HEFCE purposes either as full-time, in which case the HEFCE block grant pays universities full resource at Band C (£3379) and assumes universities receive half tuition fees from students, or as sandwich students, in which case HEFCE funding treats them as 0.5 of a full-time student, paying universities £1689 per student and assuming universities collect half tuition fee from the student.

*       An outgoing student on an Erasmus/Socrates placement for the entire year abroad pays no fee, but this student counts as a full-time student (at £3379 per student) in HEFCE's block grant to the university, the logic being that students going out on exchanges generate incoming exchange students who need to be taught. In addition the HEFCE block grant includes an element of compensation (currently around £560) to make up for losing the student's tuition fee, Universities should therefore ensure they are listing their outgoing Erasmus/Socrates students as full-timers in their HESES returns. 

*       HEFCE regards YA students at HEIs but not on an Erasmus programme (eg in Latin America) as full-time students, and assumes 0.5 tuition fee paid to the university by the student. Again, the logic is that such students will probably be on an exchange, so the university will need to teach incoming students. 

*       A student in a work placement abroad or working as a teaching assistant abroad pays the university half the tuition fee. HEFCE pays the university no fee compensation but counts the student as a sandwich student and  pays the university for half of an FTE (ie £1689).


Action points for UCML
*       In the run-up to the introduction of variable fees UCML is pressing the DfES to sponsor national tuition fee bursaries for Modern Languages students, particularly those from less advantaged backgrounds. We may have some success with this, but HEFCE's initial response to Charles Clarke (see letter from Sir Howard Newby in THES) stresses the need to stimulate demand for subjects rather than increasing funding to universities.

*       We also need to lobby for more equitable arrangements for students who go abroad  as teaching assistants or on work placements. From HEFCE's point of view these students do not generate any incoming exchange students who need to be taught, so paying the university for 0.5 of an FTE may seem reasonable, but it does not seem reasonable to students to have to pay half the tuition fee. It will seem even less reasonable when variable fees are introduced if students in this category have to pay £1500 for the YA. Given the shortage of language teachers and the need for graduates with work-related skills, UCML should press for fee compensation from HEFCE for this category of student instead of expecting students to pay.

*       Languages not eligible for Erasmus funding (eg Russian) will be hardest hit by the introduction of variable fees for the year abroad. UCML will lobby in this area in its response to HEFCE on support for subjects of strategic national importance.

*       UCML needs to press for a resolution of the anomaly whereby students of Spanish or Portuguese (for example) pay no fee if they go on an Erasmus/ Socrates exchange to Spain or Portugal, but they pay half the fee if they go to Latin America.  

*       HEFCE is currently considering a report on its programme of support for Minority Subjects. UCML submitted evidence to the author of this report, urging HEFCE to widen its terms of reference by considering not just value for money issues but also the range of subjects it will support in any future programmes.

Action points for Schools and Departments
*       Many universities have already decided on the fee levels they will charge from September 2006. The HE press reports suggest that nearly all will opt for full top-up fees. What many universites have not yet settled, however, are their internal bursary arrangements. Schools of Modern Languages should consider pressing for subject-specific bursaries within their institutions. Schools may not wish to go down this route, but given the social background of language students, there is a case for bursaries to enable students from less affluent backgrounds to pursue languages. 

*       UK students of the languages of Eastern European accession countries (eg Polish, Czech) are now eligible for Erasmus schemes, and MFL departments in the BASEES field need to take full advantage of this.

*       Universities receive funds for widening access (£49 million in 2004-05), and given that the social background of Modern Languages students is at the more affluent end of the spectrum (second only to that of Medicine students), these funds should be available for widening access in modern languages. Ambassador, mentor and buddy schemes in languages should qualify for support from these funds. HEFCE's examples of widening access specifically mention HE students supporting learning in schools and colleges.

*       Academic departments need to work closely with finance departments to ensure maximum transparency.  Questions to ask include: how are HEFCE funding bands applied (if at all) within the institution? (this could be at faculty or department level, at programme (degree course) level or even at unit or module level). Some institutions which have used HEFCE banding as a guide to internal distribution may have introduced transitional arrangements to mitigate some of the effects of reduced funding to Band B subjects: if so, what is the impact of these arrangements on Band C subjects and how long will they last?  How are year abroad students treated for funding allocation purposes within the institution?  How much does a department receive for a Socrates exchange student?  Is this more, less or the same as for a work placement or assistantship?  How is a student studying or working outside the EU funded?  Are there differences in the resource distribution model depending on whether the student is 'majoring' in a foreign language or studying in an IWLP (for credit or not for credit)?


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