To: Heads of Research England-funded higher education providers
Reference: RE-CL-2025-07
Publication date: 29 October 2025
General queries to kepolicy@re.ukri.org
Dear Vice-Chancellor or Principal
HEIF review: addressing the government mission of kickstarting economic growth
This letter outlines Research England’s plans for implementing a programme of review and associated adjustments for HEIF. It focuses on delivering the government’s priority mission of driving economic growth, as directed through the guidance received from the Department for Science, Innovation and Technology. The economic growth mission is articulated as delivering an economy that is growing, creating wealth, and generating opportunities for all, across regions and communities.
To contribute to this mission, institutions can use HEIF to:
- stimulate national economic growth
- enhance local and regional growth
- create opportunities for students, staff and the wider community
The review and associated adjustments follow a period of evaluation of HEIF and will incorporate insights from the exercise, as well as longer-term learning from the 2022 to 2023 Knowledge Exchange (KE) review and the development of the Knowledge Exchange Framework.
Since its launch in the early 2000s, HEIF has consistently delivered strong returns on investment (PDF, 3.5MB), most recently evidenced as £14.80 for every £1 invested, supporting a wide range of impactful activities across England. Its flexible application has enabled the higher education sector to build industry partnerships at both local and national levels, de-risk innovation, commercialise new technologies, strengthen skills pipelines, and enhance public services.
However, evaluations and efforts to refine the programme have identified limitations in the current funding formula, particularly around its responsiveness and clarity in targeting priority outcomes. Review and adjustment is needed to realise the following benefits:
- closer alignment between institutional HEIF strategies based on distinctive strengths and specialisms, and specific government priorities, driving economic growth
- greater clarity and agility in the HEIF allocation formula to respond to current and emerging government priorities
- addressing inefficiencies and constraints in the current formula and distribution model
- improved quality and use of data to measure outcomes and stronger evidence linking HEIF-supported activities to government priorities, especially economic growth
HEIF review is being implemented through two phases of work
Phase 1: Outcomes-focused accountability
This phase begins with the release of a new HEIF accountability statement template, available via the Research England Data Portal for all providers receiving a 2025 to 2026 HEIF allocation. This template will form the basis for reporting across all HEIF allocations from 2026 to 2031.
The new accountability framework, set out in the updated HEIF policies and priorities document, requires institutions to submit strategic plans for HEIF. The plans shall clearly demonstrate how their activities build on their distinctive strengths and specialisms to contribute to economic growth, in line with HEIF policies and priorities.
Phase 2: Review and adjustment of the allocation formula
We plan to review and revise the allocation method to incentivise institutional contributions to government priorities, particularly economic growth, with greater clarity and agility. The updated formula will aim to better reflect the evolving nature of the higher education sector and ensure more effective distribution of funding.
In the longer term, this revised approach will be supported by improved data from Research England’s national KE metrics programme, enabling more robust performance measurement of knowledge exchange activities.
Significant changes to the allocation formula will not be introduced before the 2027 to 2028 academic year.
HEIF Accountability 2026 to 2031
Alongside this letter, we have published updated HEIF policies and priorities to provide institutions in receipt of HEIF with new government priorities and policies. These policies and priorities should fully govern HEIF use from 2026 to 2027 but Higher Education Providers (HEPs) are expected to begin consideration of these new priorities also in current uses of HEIF. This publication incorporates previously released addenda on data requirements and best practice adoption from the Spin-outs Review. It also outlines the expectations for the new HEIF accountability statement.
The evolved HEIF accountability statement template asks HEPs to provide their proposed strategic KE objectives that will determine use of HEIF from 2026 to 2027. These objectives must be clearly linked to outcomes that support government priorities, specifically economic growth, and include plans for measuring progress.
Research England will conduct an initial high-level review for completeness in May, followed by a full review over the summer. Institutions will receive written confirmation of approval or notification of any queries. Unless otherwise advised by Research England, HEPs should use their submitted accountability statements to guide HEIF spending from August 2026.
It is a condition of receipt of a 2026 to 2027 HEIF allocation that a compliant accountability statement has been submitted. Institutions will be expected to use their allocations in line with the strategic objectives outlined in their submitted plans, and only for eligible activities, specifically knowledge exchange, and not for capital expenditure.
The new accountability structure is designed not only to support delivery of government priorities but also to enable the reduction of future reporting burden. It provides a stronger foundation for annual monitoring and periodic evaluation of HEIF. We recently published the final reports for both the 2024 major evaluation of HEIF, and an update to the quantitative assessment of the return on investment of HEIF (PDF, 3.5MB).
We recognise that outcomes-based accountability is a new approach. To support institutions, we are working with Knowledge Exchange UK (KEUK) to host a webinar in November, followed by KEUK-led workshops to build understanding and share best practices for completing the new template. Further details will be shared directly with designated institutional KE contacts.
Timetable for completing the HEIF accountability exercise
October 2025
Publication of new HEIF policies and priorities.
November 2025
Distribution of accountability statement template to HEPs.
KEUK and Research England webinar to launch and explain new accountability process.
Winter 2025
Peer learning workshops with KEUK.
30 April 2026
Deadline for HEPs to submit completed accountability statements.
May 2026
Research England conducts high-level accountability statement submission review for completeness.
May to August 2026
Full accountability statement submission review period by Research England.
1 August 2026
Start of multi-year accountability period.
31 July 2031
End of multi-year accountability period.
Next steps
The accountability statement template will be provided to all HEPs in receipt of a 2025 to 2026 HEIF allocation through the Research England Data Portal.
Further information regarding the supporting KEUK workshops has been shared to designated institutional KE contacts.
Completed HEIF Accountability Statements for 2026 to 2031 must be submitted via the Research England Data Portal by 30 April 2026.
Any queries should be directed to kepolicy@re.ukri.org.
Yours sincerely
Professor Dame Jessica Corner, Executive Chair