UK universities encouraged by govt to seek private funding

Universities and tertiary colleges in England are being encouraged to seek private funding under a government 'matched funding' scheme.

The scheme, announced this month, gives three options for institutions to score a share of £600 million in matched government funding over the next three years.

The 'Voluntary Giving' initiative is designed to encourage more universities to boost fundraising efforts and stimulate further investment from private investors.

The scheme operates on a three-tier basis designed to allow institutions to set their own fundraising levels.

The top tier, is funded on a 3:1 private to public funding ratio, the second 2:1 and the third on a 1:1 basis.

This would mean, for example, that a university in the second tier which raises £4 million would receive an extra £2 million from the government.

Once universities have indicated which tier they wish to join, each tier will be capped to ensure the scheme is able to respond to the needs or participating institutions.

John Denham, the Secretary of State for Innovation, Universities and Skills, said in a statement that the scheme would mean universities and colleges could spend money in any way most beneficial to them and their students.

Further information is in a British government statement at this web page.