London targeted allocation: Methodused to inform the indicativeallocation

  1. The funding allocation method used to inform the indicative targeted allocation for students attending courses in London is described below. The indicative London targeted allocation output is provided solely to highlight potential HESA errors. It should not be considered as any kind of funding commitment by us and is without prejudice to what our Board may agree to be the final allocation for any institution.
  2. The London targeted allocationis based on HEFCE-fundable students in all modes and levels of study for price groups A to D. Students in the price groups for Media studies and for Sports science and leisure studies have been included within price group C.Rates of funding are calculated for each price group depending on the proportion of students at the institution being taught in inner or outer London. The method below describes the figures in the LTA14 worksheet of the LTA14_HXXXXXXXX.xlsx workbook.

Funding method

Step 1

  1. FTEs areclassified by price group (A, B, C or D) and by whether they are taught:
  2. at the registeringinstitution ata campus in inner London
  3. at the registeringinstitution ata campus in outer London
  4. at the registeringinstitution ata campus not in London
  5. through a franchise to an institution in inner London
  6. through a franchise to an institution in outer London
  7. through a franchise to an institution not in London
  8. through a franchise to an unknown institution.

Step 2

  1. Each of the FTEs in columns B to H of Table 1 are multiplied by the price group weights:
  • A 4
  • B 1.7
  • C 1.3
  • D 1

and standard London weightings:

  • 1.08 for inner London
  • 1.05 for outer London
  • 1 for not in London or unknown institutions.

These weighted FTEs (in columnsI to O of Table 1) are then added together to give ‘Total weighted FTEs (A)’.

Step 3

  1. The ‘Total FTEs’in Table 2 are the sum of the FTEs in columns B to H of Table 1. These FTEs are multiplied by the price group weights given in Step 2 to give ‘Total price group weighted FTEs (B)’.

Step 4

  1. A revised London weighting is calculated as:

((Total weighted FTEs (A) ÷ Total price group weighted FTEs (B)) – 1) × 100

and is rounded to one decimal place.
Step 5

  1. Rates for each price group are then calculated by multiplying the 2011-12 base price, £3,670, by the price group weights and by the revised London weighting.Thisfigure is rounded to a whole number and then multiplied by a scaling factor of 0.93224693. Theserevised rates are shown in Table 3.

Step 6

  1. Therevised rates are then multiplied by the student population, which for the 2016-17targeted allocation, is thesum of HEFCE-fundable, full-time counts of year of instance, sandwich yearout counts of year of instance multiplied by 0.5 to express them in FTE terms, and part-time FTEs, from Tables 1 to 3 of HESES15,and then summed to give an overall London targeted allocation (‘Revised funding’ column in Table 3).

Re-building the indicative allocation using the individualised file

  1. The summary figures derived from HESA data shown in the LTA14_HXXXXXXXX.xlsx workbooks are listed below. For each section we describe how to identify the records in the individualised file LTA14_HXXXXXXXX.ind that contribute to the figure. For further information about individualised files, see our guide,‘Working with individualised files’ ( each case we specify the values of the derived fields needed to rebuild the values. The definitions for these derived fields are provided in our technical documentation (see

Item in workbook: Table 1 / Derived field selection in individualised file
Inner London campus price group A / LTACAMPI_A, where LTAPOP = 1
Inner London campus price group B / LTACAMPI_B, where LTAPOP = 1
Inner London campus price group C / LTACAMPI_C, where LTAPOP = 1
Inner London campus price group D / LTACAMPI_D, where LTAPOP = 1
Outer London campus price group A / LTACAMPO_A, where LTAPOP = 1
Outer London campus price group B / LTACAMPO_B, where LTAPOP = 1
Outer London campus price group C / LTACAMPO_C, where LTAPOP = 1
Outer London campus price group D / LTACAMPO_D, where LTAPOP = 1
Campus not in London price group A / LTACAMPN_A, where LTAPOP = 1
Campus not in London price group B / LTACAMPN_B, where LTAPOP = 1
Campus not in London price group C / LTACAMPN_C, where LTAPOP = 1
Campus not in London price group D / LTACAMPN_D, where LTAPOP = 1
Inner London franchise price group A / LTAFRANCHI_A, where LTAPOP = 1
Inner London franchise price group B / LTAFRANCHI_B, where LTAPOP = 1
Inner London franchise price group C / LTAFRANCHI_C, where LTAPOP = 1
Inner London franchise price group D / LTAFRANCHI_D, where LTAPOP = 1
Outer London franchise price group A / LTAFRANCHO_A, where LTAPOP = 1
Outer London franchise price group B / LTAFRANCHO_B, where LTAPOP = 1
Outer London franchise price group C / LTAFRANCHO_C, where LTAPOP = 1
Outer London franchise price group D / LTAFRANCHO_D, where LTAPOP = 1
Franchise not in London price group A / LTAFRANCHN_A, where LTAPOP = 1
Franchise not in London price group B / LTAFRANCHN_B, where LTAPOP = 1
Franchise not in London price group C / LTAFRANCHN_C, where LTAPOP = 1
Franchise not in London price group D / LTAFRANCHN_D, where LTAPOP = 1
Franchise unknown institution price group A / LTAFRANCHUNK_A, where LTAPOP = 1
Franchise unknown institution price group B / LTAFRANCHUNK_B, where LTAPOP = 1
Franchise unknown institution price group C / LTAFRANCHUNK_C, where LTAPOP = 1
Franchise unknown institution price group D / LTAFRANCHUNK_D, where LTAPOP = 1
Table 2:
Total FTEs price group A / Sum of LTACAMPI_A, LTACAMPO_A, LTACAMPN_A, LTAFRANCHI_A, LTAFRANCHO_A, LTAFRANCHN_A, LTAFRANCHUNK_A, where LTAPOP = 1
Total FTEs price group B / Sum of LTACAMPI_B, LTACAMPO_B, LTACAMPN_B, LTAFRANCHI_B, LTAFRANCHO_B, LTAFRANCHN_B, LTAFRANCHUNK_B, where LTAPOP = 1
Total FTEs price group C / Sum of LTACAMPI_C, LTACAMPO_C, LTACAMPN_C, LTAFRANCHI_C, LTAFRANCHO_C, LTAFRANCHN_C, LTAFRANCHUNK_C, where LTAPOP = 1
Total FTEs price group D / Sum of LTACAMPI_D, LTACAMPO_D, LTACAMPN_D, LTAFRANCHI_D, LTAFRANCHO_D, LTAFRANCHN_D, LTAFRANCHUNK_D, where LTAPOP = 1