HEIF returns £14.80 for every £1 invested.
Research England has today launched a consultation on proposed changes to the formula used to allocate the HEIF.
This would be the first significant change to the formula’s underlying design since it was introduced in 2008.
HEIF gives universities in England flexible funding to build knowledge exchange capability, strengthen partnerships and support innovation.
In 2026 to 2027, it is investing in 114 institutions, with allocations ranging from £258,000 to £6.78 million.
The consultation follows a review launched in October 2025 to focus HEIF on the government’s priority of economic growth.
The role of HEIF is not changing.
Institutions would continue to receive a single, flexible allocation and decide for themselves how to invest it across to best deliver outcomes and impact from their knowledge exchange activities.
What is being proposed
The consultation sets out three areas of change:
A more agile formula
Funding would be organised around four dimensions of economic growth:
- partnerships
- commercialisation
- skills and entrepreneurship
- local growth
This would allow Research England to respond to changing government priorities without redesigning the formula.
It would also create a permanent way to drive university contributions to local growth.
A simpler, single model
The current separate supplements would be consolidated into one formula, making the allocation model more flexible and easier for institutions to manage.
A more technically robust formula
The consultation proposes technical changes to how the formula’s parameters operate, and replacing one metric in the skills and entrepreneurship dimension with a more well-defined measure focused on knowledge exchange.
Professor Dame Jessica Corner, Executive Chair of Research England, said:
HEIF is a proven success, helping universities work with businesses, communities and public services to create growth right across the country.
We want to make sure the way we allocate it is simple, fair and able to keep pace with the nation’s priorities.
This consultation is a real opportunity for universities and others with experience of knowledge exchange to help us get the design right before final decisions are made.
How to respond
The HEIF consultation is open to all interested parties, including sector bodies, mission and membership groups, and individuals with knowledge exchange funding expertise.
Research England is asking for one formal response from each higher education provider eligible for HEIF funding.
The consultation closes on 15 January 2027.
The consultation seeks views on the implementation of principles and practical operation of the proposals.
It does not set out indicative allocations for individual institutions.
Research England expects to publish its decisions in spring 2027.
Any agreed changes are proposed to apply from the 2027 to 2028 allocation year.
Further information
HEIF is allocated annually using a performance-based formula.
It currently includes a £244 million main allocation, a £20 million supplement for high-performing institutions and a £20 million supplement to support work with business and commercialisation.
HEIF is rising in line with inflation as part of Research England’s protection of core funding.