Understanding the impacts of targeted funding

Equality of opportunity is fundamental to our purpose and the way we regulate. One way we’ve approached this to date has been to develop more diverse pathways into and through higher education by supporting more flexible courses. In particular, over the last year we have directed funding towards the growth of Level 4 and 5 courses leading to higher technical qualifications (HTQs).  

We recently invited three institutions that received this funding to share their experiences, and what they’ve told us shows a variety of ways in which it’s being used - and having an impact.  

What funding was made available – and who was it targeted at? 

In March 2023, the Secretary of State for Education announced the money that it would grant to the OfS to support strategic priorities, and the funding available to us to allocate for the 2023-24 financial year. A particular aim was to grow high quality Level 4 and 5 provision, seeing HTQs as flagship courses, with £16 million of support allocated.  

This provision relates to undergraduate students on courses leading to qualifications at Level 4 or 5. These qualifications include the Certificate of Higher Education (CertHE) and Certificate in Education (CertEd), Higher National Certificate (HNC), Higher National Diploma (HND), Diploma of Higher Education (DipHE) and Foundation Degrees courses (FdSc/FdA). Funding was given where institutions had students who, at that point in time, were on courses leading to this level of qualification. 

Of the £16 million of funding allocated, £11 million was made available in April 2024, with the remaining £5 million of funding distributed in July 2024.   

How have institutions put this funding to work?  

Institutions have used the funding to support courses that meet ‘real-world’ economic needs and the demand for a skilled workforce. They have also used it to ensure access to people from disadvantaged or underrepresented backgrounds – all combining in support of local regional growth.  

For example, Durham New College has developed a Certificate in Higher Education in Housing that is recognised by the Charted Institute of Housing and continues the college’s commitment to the housing sector.

University College Birmingham has developed Level 4 and 5 courses in Engineering, Construction, and Health. These have addressed critical employer skills gaps and provided accessible pathways for learners, such as through flexible learning options and offering financial or academic support to students from disadvantaged backgrounds.

Funding also enabled Nelson College in London to accelerate development of its new Broadstairs campus to widen participation, particularly among underrepresented groups and in areas with low engagement in higher education. 

What has been the outcome for students and local economies? 

The feedback from institutions we spoke to suggests that this funding is making a positive difference. Common themes are improved connections with local stakeholders and businesses, wider participation, and improved opportunity.

Housing Associations in the North East have started to upskill their managers through access to the programme with Durham New College. 

University College Birmingham graduates are now equipped with industry-aligned skills that have reduced onboarding times for employers, enhanced productivity, and filled critical gaps in areas such as sustainable construction and digital healthcare. The college shared the experiences of one of their students, Holly Jones to illustrate how funding has also widened participation in the West Midlands and helped create a more supportive higher education pathway. 

Nelson College has linked recent positive National Student Survey results to improvements supported by the funding, including enhanced IT infrastructure and upgraded facilities which, in their words, ‘are contributing to a more positive student experience’.

They also point to anecdotal evidence highlighting specific initiatives, such as the Student Attendance Software Application. Students have explained how this helps them monitor their attendance and remain engaged, which they view as essential to their academic success.

By focusing on Business and Hospitality Management, Nelson College are also supporting local workforce priorities, helping to address skills shortages in critical sectors. 

In summary 

While this feedback is limited to a small number of institutions, the impacts we’re seeing are encouraging.

They show that well-considered initiatives enabled by this funding are benefitting students, their institutions, and the areas in which they are based.

It also suggests that aspirations around equality of opportunity and tangible regional impact don’t have to be mutually exclusive. 

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If you’d like to read about some of the other work our team is involved in, earlier this year we published a short report on the impact on equality of opportunity of our degree apprenticeship funding, conducted on our behalf by Ipsos UK.