Research England’s terms and conditions set out the primary eligibility criteria to receive Research England funding. Individual funding streams may be subject to further additional eligibility criteria which are linked to the objectives, intended outcomes and specific characteristics of activity relevant to that particular funding stream.
This document sets out the additional criteria for higher education providers (HEP) to be considered eligible for Research England knowledge exchange (KE) formula funding, known as Higher Education Innovation Funding (HEIF). These are minimum criteria for all KE funding.
The Research England criteria for eligibility for knowledge exchange funding are based on the principles of evidencing a track record of knowledge exchange activity, with a low-burden data-driven evidence base and a clear route of entry or exit.
In order to be considered eligible for Research England knowledge exchange funding a provider must meet all of the following criteria.
Criterion 1: approved (fee-cap) registration
A provider must be registered with the Office for Students as approved (fee-cap) and required to submit an Annual Financial Return to the Office for Students (OfS).
Note that further education and sixth form colleges are also regulated by the Education and Skills Funding Agency and subject to different OfS approved (fee-cap) regulatory reporting requirements.
Criterion 2: demonstrable level of knowledge exchange activity
A provider must have a demonstrable base level of knowledge exchange activity within the last three years, as detailed in criteria 2a and 2b.
Criterion 2a: evidence of knowledge exchange activity
Providers will be considered to have demonstrated a base level of knowledge exchange activity where they have met or exceeded a minimum income level of 1% of the sector mean income (see Table 1) in any one of the following seven HEIF qualifying income elements (the data source is noted in brackets):
- total contract research income (Higher Education Business and Community Interaction survey, also known as HE-BCI)
- total consultancy income (HE-BCI)
- total facilities and equipment related services income (HE-BCI)
- total regeneration and development income (HE-BCI)
- total IP income, excluding sales of shares in spin-offs (HE-BCI)
- total non-credit bearing course fees (OfS Annual Financial Return)
- knowledge transfer partnership income (Innovate UK, UKRI)
Criterion 2b: track record of knowledge exchange
The minimum activity level must be met or exceeded in any one income stream in any two of the most recent three years of available data.
Criterion 3: Research England verification stage
Research England reserves the right to review the eligibility of any provider on an annual basis. Informed by the metrics outlined in criterion 2, Research England will consider the activities that are informing the reported data to verify that the income relates to KE activities that meet the HERA definition of knowledge exchange.
We will apply our judgement as to whether these activities constitute knowledge exchange as defined by the Higher Education and Research Act (HERA) 2017, section 93(4)2.
Research England reserves the right to withhold or remove a provider’s eligibility for KE funding where we deem that the relevant provider’s income from activities that are considered by Research England to meet the HERA definition of knowledge exchange, does not meet or exceed the minimum level.
The minimum level of income from activities that meet the HERA definition of knowledge exchange is 1% of the sector mean income in any one of the seven HEIF qualifying income elements in any two of the last three years.
Data sources and timescales
To be considered for eligibility for a given allocation period (usually 1 August to 31 July), a provider must be registered as an approved (fee-cap) provider with the OfS on 31 March prior to the allocation period.
See guidance on registering with the OfS
The proposed eligibility criteria are based on data that will be sourced directly by Research England from the following organisations under existing reporting requirements:
- Higher Education Statistics Agency (part of Jisc), providing data from the HE-BCI survey
- Innovate UK, providing data on Knowledge Transfer Partnership income
- Office for Students, providing data on Annual Financial Return
The Office for Students operates varying deadlines for providers to submit their Annual Financial Return. The Office for Students will then undertake its own data verification processes before providing the finance data to Research England.
For the purpose of determining eligibility, Research England will use the most recent finance data that is held by us from 31 March each year.
There is no requirement for individual providers to submit any additional data outside of existing reporting requirements as an approved (fee-cap) provider.
Sector income levels
Criterion 2a states that providers have demonstrated a base level of knowledge exchange activity if they meet or exceed at least 1% of the sector mean income for any of the seven HEIF qualifying income elements.
The sector mean income is calculated based on providers’ HEIF qualifying income data that is held by Research England from 31 March prior to the allocation period, and will include income from all providers who meet criterion 1.
The absolute figures that result from these calculations, for each qualifying income element, in each of the last three years are provided in table 1.
All 1% sector mean figures are rounded to the nearest thousand, with a minimum value of £1,000 for each element.
The 1% sector mean figures that are provided here are fixed for use in future eligibility calculations. We won’t amend them if individual providers have individual data amendments authorised through Research England or the OfS data amendment process. Table 1 will be updated each year to include the most recent three years of data used in the eligibility calculations.
Table 1: Qualifying 1% sector mean income for activities
| HEIF qualifying income element | 2021-22 | 2022-23 | 2023-24 |
|---|---|---|---|
| Total contract research income | £74,000 | £73,000 | £82,000 |
| Total consultancy income | £23,000 | £23,000 | £24,000 |
| Total facilities and equipment related services income | £12,000 | £13,000 | £14,000 |
| Total regeneration and development income | £12,000 | £12,000 | £8,000 |
| Total IP income (excluding sales of shares in spin-offs) | £12,000 | £12,000 | £12,000 |
| Non-credit bearing course fees | £33,000 | £38,000 | £43,000 |
| Knowledge transfer partnerships income | £1,000 | £1,000 | £1,000 |
Change in eligibility status
It is not possible for any provider to apply for eligibility for Research England KE funding. Research England will determine the eligibility status for all approved (fee-cap) providers for the forthcoming allocation period each spring according to the criteria set out in this document.
We will communicate any change to the KE funding eligibility status that may impact existing funding allocations to the affected HEP as soon as possible, and within eight weeks of the HE-BCI data publication date.
Under criterion 3 Research England may seek to verify that the activities underlying the reported data relate to KE activity, as defined by the Higher Education and Research Act (HERA) 2017. We reserve the right to withhold or remove a provider’s eligibility for KE funding.
Research England will use this right by exception should we identify extraordinary circumstances where reported income does not relate to knowledge exchange activity as defined by the 2017 Act.
The list of all eligible providers included in any formula funding calculations will be published yearly as part of the suite of supporting information that we publish following our funding allocations.
Research England will immediately withdraw eligibility from any provider who loses approved (fee-cap) status from the Office for Students during an allocation year.
Note that eligibility for KE funding does not mean a KE funding allocation. Where a provider is eligible for KE funding, that provider will be included in the HEIF formula allocation process for the relevant allocation year. However, the HEIF formula is subject to various parameters, including a minimum allocation threshold.
See how Research England fund higher education providers for more information about the HEIF formula.
All recipients of HEIF funding are required to regularly submit funding accountability information related to the provider’s strategic objectives, plans for use and oversight for HEIF funding. Should a provider be successful in achieving a HEIF allocation for the first time, that provider will be required to comply with Research England terms and conditions, submit accountability information within the initial funding year and subsequently more detailed plans for the remainder of the allocation period.
Ongoing receipt of funding will be dependent on Research England approval that all terms and conditions and associated accountability requirements have been met. Detailed information about the accountability requirements for new HEIF recipients will be provided to any relevant providers following confirmation that a HEIF allocation has been achieved.
Eligibility decision process
1: is the HEP OfS-registered as approved (fee cap)?
If the answer is no: the HEP is not legally eligible for any Research England funding.
If the answer is yes: continue to next query.
2: is the HEP required to submit financial data to the OfS (not required for further education or sixth form colleges)?
If the answer is no: the HEP is not eligible for KE funding from Research England.
If the answer is yes: continue to next query.
3: does the HEP meet the minimum activity level in any 1+ HEIF qualifying income element?
If the answer is no: the HEP is not eligible for KE funding from Research England.
If the answer is yes: continue to next query.
4: does the HEP meet the minimum activity level in at least two of the last three years?
If the answer is no: the HEP is not eligible for KE funding from Research England.
If the answer is yes: the HEP may be eligible for KE funding from Research England for the next allocation year (subject to confirmation by Research England)
Ask a question about KE funding eligibility
Email: KEPolicy@re.ukri.org
We aim to respond within five working days.