Data

Research England grant allocations basis 2023 to 2024

From:
Research England
Published:

Reference: RE-P-2023-04

Enquiries to: annualfunding@re.ukri.org

Introduction

1. This publication summarises the basis for Research England’s formula-based grant allocations to higher education providers (HEPs) in England in 2023 to 2024, and provides information about our formula funding methods. Funding awarded following an application process is not included, except within budget summaries.

2. The accompanying workbook Research England grant allocations data 2023 to 2024 lists our formula-based grant allocations to each HEP. Most of our funds are included at time of publishing in August 2023, and allocations for the remaining funds will be issued in September 2023, as detailed in Annex A.

3. Each HEP receiving formula-based funding from Research England in the published 2023 to 2024 grant allocations has been sent a grant letter.

4. We publish a number of documents to support understanding of our funding methods and the grant allocations for 2023 to 2024. The expected timetable for publication of these can be found in Annex B.

5. All formula funding materials for 2023 to 2024 will be available via the Research England funding allocation web pages.

Research England budgets for the 2023 to 2024 academic and financial years

6. The June 2023 guidance letter to UK Research and Innovation (UKRI) from the Department for Science, Innovation and Technology (DSIT) confirmed the funding available for the 2023 to 2024 financial year (April to March), and provisional funding for financial year 2024 to 2025. The letter also identified the policies and priorities that should underpin our approach to funding.

7. The confirmation of funding from DSIT enabled us to honour the expected budgets for 2023 to 2024 announced in June 2022. These budgets were confirmed, with some small adjustments, in our July 2023 circular letter Research England funding budgets for 2023 to 2024 and 2024 to 2025. Now, we lay out the basis of the allocations we make to HEPs from those budgets.

8. Capital funding is allocated by financial year (1 April 2023 to 31 March 2024) and all other formula-based funding is allocated by academic year (1 August 2023 to 31 July 2024).

9. Any significant future changes to our funding by government could affect the funding we are able to distribute to HEPs in the 2023 to 2024 academic year. This may include revising allocations after they have been announced.

10. While the recently published budgets cover two years, our grant allocations to HEPs are for 2023 to 2024 only. This is because the most recent data available is used to calculate allocations each year.

Table A: summary of Research England funding to be distributed in 2023 to 2024

Summary of Research England funding 2023 to 2024 total (£ million)
Total research funding (academic year basis) 2,132
Total knowledge exchange funding (academic year basis) 328
Total capital funding (financial year basis) 254
Total academic and financial year funding 2,714

Research funding

11. The underlying policy intent for our research funding, as set out in government guidance, is unchanged from previous years:

…allocations should continue to be made on the basis of academic excellence and impact. You should continue to support the next generation of researchers, and leverage funding from external sources such as the charitable and business sectors.

12. In determining our budgets (Table B) and distribution methods, we continue to recognise the government’s priorities to build the UK’s science and technology capability. We also acknowledge the importance of Research England’s funding within a balanced dual support system.

Table B: total funding for research in academic year 2023 to 2024

Research funding streams (academic year basis) 2023 to 2024 total (£ million)
Quality-related research (QR) 1,981
Policy Support Fund 29
Enhancing Research Culture 30
Participatory Research 6
Specialist Provider Element 20
National facilities and initiatives 55
School of Advanced Study and Institute of Zoology 11
Total research funding 2,132

Quality-related research (QR) funding

13. In setting the QR budgets shown at Table C, we have sought to maintain stability in our investment in research as well as continuing to recognise the outcomes of the Research Excellence Framework (REF) 2021.

14. Participation in REF 2021 has been introduced as a criterion for eligibility for QR research degree programme (RDP) supervision funding, QR business research element and QR charity support fund. No HEPs that received this funding in academic year 2022 to 2023 have been excluded from receiving QR funding in 2023 to 2024 by these changes to eligibility.

15. There are no changes to the funding methods or weightings for elements of QR funding. A description of the QR funding methods can be found in the publication How we fund higher education providers, and further detail will be provided in the technical guidance that will be published on our funding allocations pages in autumn.

16. The distribution of QR funding to individual HEPs is shown in Table 1 of the data workbook Research England grant allocations data 2023 to 2024.

Table C: budgets for the elements of QR funding in 2023 to 2024

Elements of QR funding (academic year basis) 2023 to 2024 total (£ million)
Mainstream QR funds including London weighting 1,303
QR RDP supervision funds 339
QR charity support fund 219
QR business research element 114
QR funding for National Research Libraries 7
Total QR funding 1,981
Table C notes

Figures may not sum due to rounding.

Other research funding

17. As indicated in 2022, we are maintaining the following research funding streams:

  • Policy Support Fund
  • Enhancing Research Culture fund
  • Participatory Research fund
  • Specialist Provider Element (year four of the five-year, £80 million allocation provided for specialist HEPs in the March 2020 Budget)

18. Funding methods for the above programmes have not changed. Descriptions of funding methods are included in How we fund higher education providers.

19. Allocations to individual HEPs are shown in Table 3 of the data workbook Research England grant allocations data 2023 to 2024. The Policy Support Fund, Participatory Research fund and Specialist Provider Element allocations will follow in September 2023.

Knowledge exchange funding

20. Knowledge exchange funding supports working between HEPs and business, public and third-sector organisations, community bodies and the wider public, with a view to increasing economic and societal benefit.

21. The government continues to ask us to pay attention to support for commercialisation and business engagement as well as place, and to continue joint working with Office for Students (OfS) on Department for Education priorities. The guidance letter from DSIT continues to emphasise the importance of spinning out of new intellectual property based companies, with the government Independent Review of Spinouts to make recommendations in September.

Table D: total funding for knowledge exchange in academic year 2023 to 2024

Knowledge exchange funding streams (academic year basis) 2023 to 2024 total (£ million)
Higher Education Innovation Funding (HEIF) formula funding 260
HEIF business and commercialisation supplement 20
Research England Development (RED) fund 20
RED-Connecting Capability Fund (RED-CCF) 28
Total knowledge exchange funding 328

Higher Education Innovation Funding (HEIF)

22. HEIF formula funding has been maintained at £260 million for academic year 2023 to 2024. This includes £48 million contributed by the Department for Education to support student and teaching elements of knowledge exchange through HEIF.

23. From the £260 million, £240 million is allocated through the main HEIF formula. The remaining £20 million is distributed as a supplement to HEPs whose main allocation is capped at the maximum. As in previous years, this is provided to enable HEPs to enhance their knowledge exchange strategies where there is evidence that the cap on funding is a constraint on their support of economic growth.

24. We have maintained the same funding method and weightings for the main HEIF formula funding, except for the limit on the year-on-year percentage increase which has returned to 10%. This limit was temporarily raised last year to accommodate a budget increase.

25. A description of the HEIF funding methods can be found in the publication How we fund higher education providers. A more detailed explanation will be provided in the technical guidance that will be published on our funding allocations pages in autumn 2023.

26. HEPs in receipt of HEIF must comply with the HEIF policies, priorities and accountability arrangements. We also ask that in using these funds, HEPs pay particular attention to the priorities in the:

27. The distribution of HEIF to individual HEPs is shown in Table 1 of the data workbook Research England grant allocations data 2023 to 2024.

HEIF business and commercialisation supplement

28. The HEIF business and commercialisation supplement was introduced in 2022. Allocated using HEPs’ business and commercialisation data, this fund supports only business and commercialisation activity that is additional to activity supported by the main HEIF allocations.

29. Allocations of HEIF business and commercialisation supplement to individual HEPs will be confirmed in September 2023.

Capital funding

30. The capital funding made available to us by government for the financial year 2023 to 2024 totals £254 million.

Table E: Total capital funding in financial year 2023 to 2024

Capital funding streams (financial year basis) 2023 to 2024 total (£ million)
Research Capital Investment Fund (RCIF) 220
National facilities and initiatives 5
UK Research Partnership Investment Fund (UKRPIF) 29
Total capital funding 254

Research Capital Investment Fund (RCIF)

31. RCIF comprises two elements:

  • higher education institution (HEI) Research Capital England is allocated in proportion to 2021 to 2022 and 2022 to 2023 QR funding and research income (for 2020 to 2021 and 2021 to 2022) from other selected (non-research council) sources
  • Higher Education Research Capital (HERC) England will continue to be allocated in proportion to research income from research councils, reflecting finance data for the most recent three years

Table F: RCIF funding in financial year 2023 to 2024

RCIF funding (financial year basis) 2023 to 2024 total (£ million)
HEI Research Capital England 113
Higher Education Research Capital (HERC) England 107
Total RCIF funding 220

32. As in previous years, we are not providing RCIF allocations in 2023 to 2024 to HEPs where the total sum of the two RCIF elements would be less than £10,000.

33. Participation in REF 2021 has been introduced as a criterion for eligibility for RCIF funding. The small number of HEPs that would be affected by this change are being funded by exception for financial year 2023 to 2024, in order to provide an appropriate adjustment period. The affected HEPs have each been contacted individually.

34. RCIF funding is provided on a financial year basis and must be used for the purpose intended. Research England is not permitted to make payments to HEPs in advance of need and thus require capital grants to be spent in full by March 2024.

35. Research England funding should not be used for advance payments to contractors, or other financing arrangements (such as bonds) where payments precede production of goods or delivery of services.

36. Allocations of RCIF funding are shown in Table 2 of the data workbook Research England grant allocations data 2023 to 2024. These are provided to sustain and strengthen the facilities and infrastructure that underpin research and enhance the research environment at HEPs. RCIF funds aim to:

  • contribute to the long-term financial sustainability of a HEP’s research and the supporting physical infrastructure
  • contribute to replacement of premises or infrastructure, improved space utilisation, and increased sharing and utilisation of research equipment
  • promote collaborative partnerships between HEPs, industry, charities, government and NHS Trusts
  • promote world-leading research capability in all disciplines with the capacity to respond to developing national priorities

37. Capital funding must be used for the purposes intended, though we recognise that it may be neither feasible nor desirable to create ring-fenced boundaries between research and teaching facilities. We look to HEPs to adopt a pragmatic approach, whereby capital projects primarily focus on research activities.

38. In deciding how these funds are spent we expect HEPs to consider environmental sustainability and the need to reduce carbon emissions as well as securing value for money.

Museums, galleries and collections funding

39. Our research funding supports infrastructure on which research and scholarship depends. This includes support for university museums, galleries and collections.

40. We currently provide almost £12 million per year to 33 higher education museums, galleries and collections across 19 HEPs. Our funding helps these museums, galleries and collections to serve the wider research community, where this costs the host HEPs significantly more than meeting the needs of their own researchers and students.

41. The distribution of this funding to individual HEPs is shown in Table 4 of the data workbook Research England grant allocations data 2023 to 2024.

National facilities and initiatives funding

42. We aim to provide as much of our funding for research and knowledge exchange as possible through recurrent grant allocations to HEPs. Further allocations, in the form of funding for national facilities and initiatives, are provided for specific purposes and to promote change that cannot easily be achieved through other routes.

43. We have allocated £55 million (including £12 million for museums, galleries and collections mentioned above) from our research and knowledge exchange grant and £5 million from capital funding for these purposes.

Terms and conditions of funding

44. The terms and conditions of funding set out the formal relationship between UKRI and the HEPs that it funds, in relation to funds administered through Research England.

45. The terms and conditions:

  • describe the broad accountability framework that exists between Research England and the higher education providers it funds
  • explain expectations related to provision of data, and compliance with governance and data assurance requirements

46. HEPs should read the Research England terms and conditions for the 2023 to 2024 academic year in conjunction with this publication and their grant letter.

47. Research England’s funding powers under the Higher Education and Research Act 2017 are linked to the definition of eligible HEPs set by the OfS. The definition is prescribed in detail by the OfS’s regulatory framework, effective from 1 August 2019.

Fluctuation in grant allocations for HEPs

48. Most HEPs will receive different amounts of grant in 2023 to 2024 from that received in 2022 to 2023. This may be due to changes, relative to the sector as a whole, to each HEP’s data in the following areas.

Data which affects HEPs’ share of research funding, including:

  • postgraduate research student numbers
  • research staff numbers
  • OfS Annual Financial Return data

Data which affects HEPs’ share of knowledge exchange funding, including:

  • Higher Education – Business and Community Interaction (HE-BCI) survey data
  • OfS Annual Financial Return data
  • Knowledge Transfer Partnerships (KTP) data

Further information

49. HEPs requiring further information should contact annualfunding@re.ukri.org

Annex A: grant allocation data schedule for 2023 to 2024

See the data workbook, Research England grant allocations data 2023 to 2024 for our formula funding grant allocations to individual HEPs. This workbook will be updated when further allocations are issued, in addition to any separate notifications to HEPs.

The workbook consists of four tables:

  • Table 1: QR and HEIF grant allocations for the academic year 2023 to 2024
  • Table 2: RCIF grant allocations for financial year 2023 to 2024
  • Table 3: further grant allocations for the academic year 2023 to 2024
  • Table 4: Museums, Galleries and Collections fund grant allocations for the academic year 2023 to 2024

Version 1 of the workbook, issued in August 2023, contains grant allocations for the following funds:

  • QR funding
  • HEIF
  • RCIF
  • Museums, Galleries and Collections funding
  • Enhancing Research Culture funding

The remaining funds will be added in September 2023:

  • HEIF business and commercialisation supplement
  • Participatory Research fund
  • Policy Support Fund
  • Specialist Provider Element

See Annex B for information on the documents we publish to support understanding of our formula funding allocations.

Annex B: formula funding publications for 2023 to 2024

In order to support understanding of our funding and grant allocation methods, we publish a number of documents. Here is the expected timetable for publication of these documents, which will be available in the Research England funding allocation web pages for 2023 to 2024.

Documents currently available include:

Documents to be published in September 2023 include:

  • HEP allocations for remaining funds. See Annex A for a list of funds

Documents to be published in autumn 2023 include:

  • Grant data tables for each individual HEP: shows the data behind the calculations for QR and HEIF funding
  • Technical guidance for QR and HEIF: explains the HEP grant data tables in detail, including data sources
  • Income data used in HEIF allocations
  • Worked examples of calculations for quality-weighted volume and QR RDP supervision funding
  • Mapping of REF 2021 units of assessment to Research England research cost bands and HESA cost centres

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