UK government funding for high-cost subjects and other “strategic priorities” is set to be cut by another £100 million in the coming academic year, Times Higher Education understands.
Despite calls on ministers to redress declines in the amount the state pays to universities, the Department for Education (DfE) is planning to announce the Strategic Priorities Grant for 2026-27 will be cut back to about £1.25 billion – down from £1.35 billion last year.
The grant, which subsidises courses in areas such as healthcare and technical skills, was already reduced by £100 million for 2025-26.
It is the main source of direct state funding for universities and institutions have previously highlighted how cuts may force them to abandon teaching in key areas or give up other priorities such as access initiatives and mental health support.
Although not yet formally announced, details of the policy seen by THE show the grant will come alongside £336 million in capital funding over the next three academic years, to be used to improve university and college buildings and pay for specialist equipment.
