Extra money to protect science and engineering is continued

The allocations for individual institutions for teaching and for research total just under �7.5bn.

Some get bigger increases than others, some cuts. The money for 131 higher education institutions and 128 further education colleges is formula based.

It reflects student numbers, subject mix and research quantity and quality.

The money allows for the equivalent of an additional 24,000 full-time students.

It includes the continuation of �25m extra to support the most costly and vulnerable science subjects: physics, chemistry, chemical engineering, mineral metallurgy and materials engineering.

The chief executive of the Higher Education Funding Council for England (Hefce), Prof David Eastwood, called it a good settlement.

He said it reflected the government's recognition of the crucial role played by higher education in the country's economic and social well-being and international competitiveness.

"The funding will provide substantial growth in student numbers and offer greater opportunities to students from a wider variety of backgrounds," he said.

'Three year stability'

"These include people in the workplace and those living in parts of the country where there is an under-provision of higher education."

Prof Eastwood added: "One of the most encouraging features of this settlement is the government's continuing commitment to maintaining the unit of funding over the next three years.

Talent search

"This will enable universities and colleges to plan with confidence by offering stability in funding with sufficient resources to encourage dynamism and innovation as they continue to unlock the full potential of higher education in this country."

The Innovation, Universities and Skills Secretary, John Denham, said: "This increased investment will ensure that universities and colleges have the resources they need to continue widening participation and reaching out to new talent by working more closely with schools and employers."

Vice-chancellors' body Universities UK welcomed the settlement.

But it said it would monitor how this settlement affected those institutions hardest hit by the government's decision to redirect funding for students aiming for equivalent or lower qualifications than they already held.

"If the new target of 40% of the adult population having a higher education qualification is to be met, there must be even greater focus and support for part-time, mature and work-based learners," said chief executive Diana Warwick.