The Department for Education (DfE) has confirmed that universities will receive £50.9 million less in teaching grants next academic year, with funding slashed for courses including nursing and computing.

The Strategic Priorities Grant (SPG) budget, which is used to fund high-cost subjects and other priority areas, has been set at £1.25 billion in 2026-27, down £100 million from last year’s £1.35 billion, as previously reported by Times Higher Education.

However, about half the decline is due to the reallocation of funding for Higher Education Innovation Funding – a Research England programme – which remains at £48 million, the Office for Students (OfS) said.

The announcement, which follows last year’s cut of £100 million, came later than expected in a blow to already-struggling universities, which will now have to find the funds for deprioritised courses elsewhere.

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In a letter to the OfS, which distributes the funding, Bridget Phillipson, the education secretary, said funding should no longer be given to support nursing, computing, history, creative arts, performing arts, archaeology and geography courses.

In addition, the money will no longer be used to support the salaries and pensions of some NHS staff who also have teaching and research roles in universities.

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Medical schools were already in a dispute with the government over the pay of these workers, arguing that long-term underfunding is causing a decline in the number of clinical academics.

In her letter, Phillipson says next year’s allocation “takes account of the ongoing challenge of this government’s fiscal inheritance, which has required difficult decisions regarding spending priorities”.

It also comes in the context of increased income from the sector as a result of tuition fee rises, she said. Universities UK has previously warned that further cuts would undermine the impact of the uplift.

Phillipson asked the OfS to protect funding for subjects including medicine, dentistry, veterinary science, chemistry and engineering. Funding supplements focused on fast-track pre-registration courses will be maintained for nursing, midwifery and allied health courses.

Student premium funding, which supports disadvantaged students, is being reduced.

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“The letter from the DfE has come to us later than it has previously, and we’re grateful to universities and colleges for their patience during this time, especially given the current financial pressures across the higher education sector,” said Nolan Smith, director of resources and finance at the OfS.

“These reductions in funding will be more sharply felt by some institutions than others. All institutions will now need to plan for how best to adjust their budgets to ensure they continue to deliver high-quality courses and resources to students.”

Smith added that the regulator will share indicative funding allocations with institutions this week and confirm the final figures “as soon as possible”.

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University representatives reacted with anger to the news. University Alliance CEO Vanessa Wilson called it a “short-sighted and irresponsible decision that flies in the face of the government’s own industrial strategy”.

The cuts to creative subjects alongside nursing and computing “represents an act of cultural and economic vandalism that risks undermining the talent pipeline on which our public services, economy and future prosperity depend”, Wilson added.

Libby Hackett, chief executive of the Russell Group, said the impact “will be felt far beyond individual universities”.

“There are undoubtedly pressures on the overall Department for Education budget, and we recognise steps have been taken to mitigate the impact of these cuts, including protecting HEIF, but these cuts will hit hard given the acute financial strain being felt by many universities.”

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helen.packer@timeshighereducation.com