This helps maintain a competitive environment by enabling new entrants to challenge existing players, thereby improving quality and keeping down costs. Another small proportion of funds is used to reward collaborative research with industry, commerce and charities. This generates additional research income for the institution and promotes efficient use of scarce and expensive resources. They are free to distribute this grant internally at their own discretion, as long as they comply with the conditions set out in their Financial Memorandum with the Council, and the money is used to support teaching, research and related activities. This arrangement gives managers in higher education the freedom to make decisions in the best interests of the institution and its stakeholders, but safeguards the public investment.
Some special funding aims to level the playing field so that the market can operate effectively.
An example is the initiative to help institutions with a particularly poor estate. Without support, these institutions would need to divert grant to maintaining the physical infrastructure, and would have less to spend on teaching and research than better endowed institutions. Most initiatives are set up with a limited life. They finish when the particular need has been met, or when the activity becomes self-sustaining, as in the case of development funding for continuing vocational education. Quality assessment Obtaining value for money calls for judgement of quality as well as cost.