UKRI understands that research organisations across the UK face a range of financial pressures which require them to make decisions about how much they can support and invest in research activities. We want to support the sector in taking action to reduce the gap between research income and actual expenditure for all eligible research organisations and their associated finance models.
Our previous work on the costs of research, and the factors, incentives and behaviours that affect cost recovery and financial sustainability, is available in the 2025 research financial sustainability insights paper. We have highlighted a gap between the actual cost of conducting research and the amount of funding that is requested in grant applications.
We want research organisations, applicants, reviewers and panel members to help change this culture. By promoting accurate and transparent costing, and improving training and guidance for assessors, together we can support a more financially sustainable research environment for everyone.
All applications for UKRI funding should set out the full costs of delivering high-quality research. To avoid placing undue financial burden on research organisations, applicants should avoid making judgements that understate the true costs of an activity or omit essential time and resources needed to deliver the proposed work.
As the UK’s largest public investor in research and innovation, UKRI wants to deliver value for money by ensuring that the resources requested on grant applications are cost-effective and justifiable for the success of the project. Some funding opportunities may have funding limits but within these we want applicants to include the genuine scope and cost of the research activities, following published guidance on:
Why accurate costing matters
UKRI will not automatically fund everything requested if it is not fully justified. The perception that lower costs will be viewed more favourably during the assessment process is misleading and exacerbates unsustainable practices, ultimately placing greater financial burden on research organisations.
UKRI wants to invest in excellent research, and it is important that researchers fully cost their projects so that they ensure the outputs are deliverable.
This statement builds on our earlier policy announcements on financial sustainability and aligns with the recommendations of the Post-16 Education and Skills white paper.