The Further and Higher Education Act 1992 made changes in the funding and administration of further education and higher education within England and Wales, with consequential effects on associated matters in Scotland which had previously been governed by the same legislation as England and Wales.

A goal of the act was to end the distinction – known as the "binary divide" – between colleges and universities.

[2] In addition, the act created bodies to fund higher education in England—HEFCE—and further education—FEFC.

Universities in Scotland and Wales which had previously been funded by the UK-wide Universities Funding Council were the subject of other acts that created higher education funding councils in each country.

The act also removed colleges of further education from local government control, and created quality assessment arrangements.