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<p>The London Weighting element of the Strategic Priorities Grant accounts for a small
proportion of London-based providers’ income. Providers in London received around
£64 million London Weighting in academic year 2020-21, which was less than 1% of their
estimated total income.</p><p>The Strategic Priorities Grant, formerly referred to
as the Teaching Grant, plays an important role in supporting providers and students
to develop the skills and knowledge needed locally, regionally and nationally to support
the economy.</p><p>The grant is funding supplied by the government on an annual basis
to support higher education (HE) providers’ ongoing teaching and related activities.
In the financial year 2020-21, the Department for Education provided £1,253 million
in recurrent Teaching Grant funding. In financial year 2021-22, the department will
maintain this level of funding and is providing £1,253 million in recurrent Strategic
Priorities Grant funding.</p><p>We have asked the Office for Students (OfS) to reform
the grant for the 2021-22 financial year to ensure that more of taxpayers’ money is
spent on supporting HE provision which aligns with national priorities, such as healthcare,
science, technology, engineering and mathematics and subjects meeting specific labour
market needs.</p><p>We have also asked the OfS for a £10 million increase to the specialist
provider allocation, to support these institutions which are particularly reliant
on Strategic Priorities Grant funding, many of whom are London-based. We want to ensure
that our small and specialist providers, including some of our top music and arts
providers, receive additional support, and that grant funding is used to effectively
support students.</p><p>Even with the removal of the London Weighting, the reforms
mean that around 1 in 6 London providers are estimated to see an increase in their
Strategic Priorities Grant funding. These are HE providers offering courses aligned
with the government’s strategic priorities.</p><p>The OfS will consult on these changes,
before final allocations for the 2021-22 financial year are confirmed, and carefully
consider the impact of any changes on providers.</p>
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