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Funding for Higher Education

The government grants allocated to higher education is mainly determined by student activity at each university.
Rune Skov Hansen
Tlf.: +45 72 31 85 66
Email: rsh@ufm.dk
Raeed Ali
Tlf.: +45 72 31 89 12
Email: rea@ufm.dk

The government grants for higher education is determined by the 2017 grants reform that went into effect on the 1st of January 2019. According to the grants reform, approximately 75% of the educational funding is flexible, and thus varies from year to year depending on the output of the universities, while the remaining 25% is fixed.

Basic Funding for Higher Education

The basic funding for higher education is a fixed grant allocated annually. It is calculated as 25% of the educational funding allocated to the individual institution in 2017. The basic funding will be re-evaluated for the first time in 2023.

As an addition to the basic funding, universities receive a fixed grant per department, aside from the main campus, located outside the four major cities (Copenhagen, Odense, Aarhus, and Aalborg). Each university can receive grants for up to six departments.

Student Activity Based Grant

The principal share of public funding for higher education is allocated through the taximeter scheme based on student activity – it makes up approximately 67.5% of the total funding for higher education.

Every year, all passed examinations are reported and converted into student full time equivalent (FTE), which equals one year of the prescribed period of study (60 ECTS points). Each FTE elicits a fee to the universities based on the rate of the subject.

The rates varies according to the subject fields and are divided into three levels, where subjects within the natural sciences typically receive the highest rate, while subjects within the social sciences and the humanities typically receive the lowest rate. The rates are determined in the annual Danish Appropriations Act.

Results Based Grant

Two indicators determine the results based grant: Duration of study and Employment.

The employment indicator measures the rate of employment amongst graduates against the general employment rate.

The duration of study indicator measures the average time for students to complete their studies against each institution’s baseline target. The baseline target consists of the prescribed lengths of the offered programmes plus 3 months.

The results based grant corresponds to approximately 7.5% of university funding for higher education and is calculated based on how the universities have performed on the two indicators. Each of the two indicators elicit a grant of up to roughly 5.5% of the student activity based grant.

Quality Fund

The funds that remain after the allocation of the results based grants are allocated as quality grants.

The quality grants are meant to support specific quality initiatives.

last modified Sep 11, 2019