The mainstream unit of funding has increased for the eighth year running. In AY2008/09 providers will receive a minimum three per cent cash increase to the units of funding.
In addition to this increase to the base unit of funding, there are a number of improvements and simplifications to the funding process for AY2008/09. Most notably, these include increases to the units of funding for non-standard (flexible and part-time) courses. Also, the additional premiums for the teachers’ pension scheme (TPS) have been subsumed into the base unit of funding – the three per cent increase is applied on top of this.
Holdback
The methodology for calculating holdback – recovery of funding relating to unfilled places – remains similar to AY2007/08. However, the minimum registration rate required for an under-recruitment concession has increased. This is now 70 per cent for maths and science and 80 per cent for other priority subjects. To get holdback concessions, providers will still have to send signed off audit returns to the TDA. Providers who fail to submit their audit returns on time will lose all or a proportion of their holdback concessions.
Premiums
Premiums for physics and chemistry will now put greater emphasis on increasing recruitment to these specialisms within the total science numbers.They have therefore increased to £2,000 for each filled place as declared on the ITT trainee numbers census return.
Premiums for increased recruitment for mathematics and modern foreign languages will continue for AY2008/09. These will pay £2,000 for each place filled above a calculated baseline. In addition to this, the specialist premium for food technology will also continue in AY2008/09 at £1,000 per new entrant recruited.
Black and minority ethnic recruitment and retention
The system for funding black and minority ethnic trainees was simplified last year. The TDA will continue this system to distribute the majority of the funding on a formulaic basis, early in the academic year. In addition to the formulaic funding, the TDA will continue its successful recruitment challenge grant funding.
Tuition fees
Following discussions between the TDA, DCSF and DIUS, an agreement has been reached to charge trainees on flexible postgraduate ITT courses the same tuition fees as those on standard postgraduate ITT courses. From AY2008/09 onwards, trainees starting new flexible postgraduate ITT courses will be able to apply for a tuition fee loan, so the TDA will no longer pay the fees for these trainees. Full details of eligibility for the tuition fee loan are set out in the Education (Student Support) Regulations 2008.
Changes to primary, English, dance and drama
Following the announcement by the DCSF in June 2007 English, dance and drama have now all been reclassified as non-priority subjects. As a result they have moved back to the lower units of funding, and trainees’ eligibility for bursaries and golden hellos has changed. The bursaries have also decreased for new trainees for primary teaching.
ITT mainstream units of funding for AY2008/09
National units of funding
This table contains the units of funding for providers outside London.
| Subject group | Level | Price weighting factor | Units of funding |
|---|---|---|---|
| Secondary priority high cost | PG/UG – standard | 1.307 | 5,890 |
| PG – flexible or part-time | 1.438 | 6,480 | |
| Secondary priority | PG/UG – standard | 1.174 | 5,290 |
| PG – flexible or part-time | 1.291 | 5,810 | |
| Secondary non-priority | PG/UG – standard | 1.137 | 5,120 |
| PG – flexible or part-time | 1.251 | 5,630 | |
| Primary – HEI/FEC | UG – standard | 1.000 | 4,500 |
| PG – standard | 1.308 | 5,890 | |
| PG – flexible or part-time | 1.439 | 6,480 | |
| Primary – non-HEI | PG – standard | 1.355 | 6,100 |
| PG – flexible or part-time | 1.491 | 6,710 | |
| Assessment-based options | 0.810 | 3,650 | |
Outer London units of funding
This tablecontains the units of funding for providers located in outer London.
| Subject group | Level | Price weighting factor | Units of funding |
|---|---|---|---|
| Secondary priority high cost | PG/UG – standard | 1.372 | 6,180 |
| PG – flexible or part-time | 1.510 | 6,800 | |
| Secondary priority | PG/UG – standard | 1.232 | 5,550 |
| PG – flexible or part-time | 1.356 | 6,110 | |
| Secondary non-priority | PG/UG – standard | 1.193 | 5,370 |
| PG – flexible or part-time | 1.314 | 5,920 | |
| Primary – HEI/FEC | UG – standard | 1.050 | 4,730 |
| PG – standard | 1.372 | 6,180 | |
| PG – flexible or part-time | 1.511 | 6,800 | |
| Primary – non-HEI | PG – standard | 1.422 | 6,400 |
| PG – flexible or part-time | 1.566 | 7,050 | |
| Assessment-based options | 0.851 | 3,830 | |
Inner London units of funding
This table contains the units of funding for providers located in inner London.| Subject group | Level | Price weighting factor | Units of funding |
|---|---|---|---|
| Secondary priority high cost | PG/UG – standard | 1.410 | 6,350 |
| PG – flexible or part-time | 1.553 | 6,990 | |
| Secondary priority | PG/UG – standard | 1.266 | 5,700 |
| PG – flexible or part-time | 1.394 | 6,280 | |
| Secondary non-priority | PG/UG – standard | 1.226 | 5,520 |
| PG – flexible or part-time | 1.351 | 6,080 | |
| Primary – HEI/FEC | UG – standard | 1.079 | 4,860 |
| PG – standard | 1.411 | 6,350 | |
| PG – flexible or part-time | 1.554 | 7,000 | |
| Primary – non-HEI | PG – standard | 1.462 | 6,580 |
| PG – flexible or part-time | 1.610 | 7,250 | |
| Assessment-based options | 0.875 | 3,940 | |
Secondary subject groups
This table shows which secondary subjects fall within the different subject group categories associated with different units of funding.
| ITT secondary subject specialism | ||
|---|---|---|
| Priority high cost | Priority | Non-priority |
Applied science
| Applied ICT | Applied art and design |
* 14-19 diplomas are classified in the non-priority group for AY2008/09. This will be reviewed for future years.
Mainstream ITT funding allocations for academic year 2008/09
Download the most recent information on ITT funding allocations (PDF 42KB).

