FUNDING of almost £6bn for the nation's universities next year has been announced by the Government.
The figure represents a 9% cash increase compared with 2003/04, according to the Higher Education Funding Council for England (HEFCE).
But critics said the rise was very much less in real terms.
For the University of Huddersfield, the total grant will be £47,175,000, a rise of 2.6% on last year. That includes teaching funds of £35,748,000 and total research funds of £1,223,000.
Dr John Coomber, planning and administrative officer at Huddersfield University, said: "As far as we can see our teaching grant has increased by 1.5% in cash terms so that's a real terms decrease."
The real terms drop of about 1% was affecting all universities and colleges, he said.
However, the HEFCE figures reveal funding for teaching has increased by 5.6% nationally, or just over 3% in real terms.
Dr Coomber said the 9% rise announced with such fanfare by the HEFCE was much closer, in fact, to 2.8%.
Across Yorkshire and Humberside, the funding rise is 4.5% higher than last year.
An extra 20,000 full-time student places have been created around the nation.
The bulk of the overall national budget comprises £3,826m for teaching and £1,081m for research.
Some £159m will be devoted to reducing drop-out rates for full-time undergraduates and £54m set aside for improving retention of part-time students.
Currently, one in four students drop out of Huddersfield University courses.
The highest drop-out rate is at London Metropolitan University, which sees 38% of students leave mid-way through the course.
Dr Coomber said: "Our retention rate is improving steadily. We have been working hard on that for three or four years."
But Huddersfield had seen no more cash to help keep students on.
Dr Coomber said he expected even less government funding when the variable top-up fees are introduced in 2006.
"When the present tuition fees were introduced the government promptly stopped contributing the equivalent of the fees."
He said of the university sector in general: "We are one of the best in the world but we have a considerable shortfall in funding."
Almost £9bn in extra Government funding is needed before the introduction of top-up fees, universities warned last month.
Universities UK, which represents vice-chancellors, said the fees would not come in soon enough to solve 20 years of underfunding.