Data

Research England grant allocations basis 2025 to 2026

From:
Research England
Published:

Reference: RE-P-2025-04
Enquiries to: annualfunding@re.ukri.org

Introduction

This publication summarises the basis for Research England’s formula-based grant allocations to higher education providers (HEPs) in England in 2025 to 2026 and provides information about our formula funding methods. Funding awarded following an application process is not included, except within budget summaries.

The accompanying workbook Research England grant allocations data 2025 to 2026 lists our formula-based grant allocations to each HEP.

Each HEP receiving formula-based funding from Research England in the published 2025 to 2026 grant allocations has been sent a grant letter.

We publish a number of documents to support understanding of our funding methods and the grant allocations for 2025 to 2026. The expected timetable for publication of these can be found in Annex B.

All formula funding materials for 2025 to 2026 will be available via the Research England formula-based funding web pages.

Research England budgets for the 2025 to 2026 academic and financial years

The July 2025 guidance letter to UK Research and Innovation (UKRI) from the Department for Science, Innovation and Technology (DSIT) confirmed the funding available for the 2025 to 2026 financial year (April to March). The letter also identified the policies and priorities that should underpin our approach to funding.

The confirmation of funding from DSIT enabled us to confirm our budgets for 2025 to 2026, as communicated in our July 2025 circular letter Research England funding budgets for 2025 to 2026. Now, we lay out the basis of the allocations we make to HEPs from those budgets.

Capital funding is allocated by financial year (1 April 2025 to 31 March 2026) and all other formula-based funding is allocated by academic year (1 August 2025 to 31 July 2026).

Any significant future changes to our funding by government could affect the funding we are able to distribute to HEPs in the 2025 to 2026 academic year. This may include revising allocations after they have been announced.

Table A: summary of Research England funding to be distributed in 2025 to 2026

Summary of Research England funding 2025 to 2026 total (£ million)
Total research funding (academic year basis) 2,165
Total knowledge exchange funding (academic year basis) 313
Total capital funding (financial year basis) 253
Total academic and financial year funding 2,731

Research funding

Our guidance from the government asks us to prioritise the review of our strategic institutional research funding (SIRF), which will continue until 2030. We are asked to focus on the robust assessment of the value of flexible formula-based research funding and the effectiveness of the current allocation method.

As part of the transparency pilot launching this autumn, we will begin systematically collecting evidence on how this funding is used. However, the core policy intent behind our research funding will remain consistent with previous years. 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 2025 to 2026

Research funding streams (academic year basis) 2025 to 2026 total (£ million)
Quality-related research (QR) 1,987
Policy Support Fund 29
Enhancing Research Culture 30
Participatory Research 6
Specialist Provider Element 20
National facilities and initiatives 80
School of Advanced Study and Institute of Zoology 13
Total research funding 2,165

Quality-related research (QR) funding

In setting the QR funding budgets shown in Table C, we have sought to maintain stability in our investment in research. We continue to recognise the outcomes of the Research Excellence Framework (REF) 2021.

QR research degree programme (RDP) supervision funding allocations for 2025 to 2026 return to the usual method of calculation, following the temporary change that was applied in 2024 to 2025.

There are no changes to the funding methods or weightings for any other 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 is provided in the technical guidance.

The distribution of QR funding to individual HEPs is shown in Table 1 of the data workbook Research England grant allocations data 2025 to 2026.

Table C: budgets for the elements of QR funding in 2025 to 2026

Elements of QR funding (academic year basis) 2025 to 2026 total (£ million)
Mainstream QR funds including London weighting 1,303
QR RDP supervision fund 344
QR charity support fund 219
QR business research element 114
QR funding for National Research Libraries 7
Total QR funding 1,987

Other research funding

We are maintaining the following research funding streams:

  • Enhancing Research Culture fund
  • Participatory Research fund
  • Policy Support Fund
  • Specialist Provider Element

Enhancing Research Culture fund allocations for 2025 to 2026 return to using the most recent available Higher Education Statistics Agency (HESA) student record data. This follows the temporary change that was applied in 2024 to 2025.

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

Allocations to individual HEPs are shown in Table 3 of the data workbook Research England grant allocations data 2025 to 2026.

Knowledge exchange funding

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.

The government:

  • identifies Higher Education Innovation Funding (HEIF) as an important programme to address the government’s growth mission, and supports plans to reform elements of HEIF to increase its focus in delivering economic growth
  • asks us to pay attention to support for commercialisation and business engagement, local growth and entrepreneurship, as key drivers of economic growth
  • asks us to continue our work to improve and deepen knowledge exchange data and evidence, particularly in commercialisation and local economic growth
  • highlights the importance of advice we have commissioned on university-investor links

Table D: total funding for knowledge exchange in academic year 2025 to 2026

Knowledge exchange funding streams (academic year basis) 2025 to 2026 total (£ million)
Higher Education Innovation Funding (HEIF) formula funding 280
Research England Development (RED) fund 24
Connecting Capability Fund-RED (CCF-RED) 9
Total knowledge exchange funding 313

Higher Education Innovation Funding (HEIF)

HEIF has been maintained at £280 million for academic year 2025 to 2026. This includes £48 million contributed by the Department for Education (DfE) to support student and teaching elements of knowledge exchange through HEIF. We therefore work with the Office for Students (OfS) on programme management of HEIF to reflect both DSIT and DfE priorities.

Table E: budgets for the elements of HEIF in 2025 to 2026

Elements of HEIF (academic year basis) 2025 to 2026 total (£ million)
Main HEIF 240
HEIF top-up 20
HEIF business and commercialisation supplement 20
Total HEIF 280

Knowledge exchange eligibility criteria

In 2025 we updated our policy on the eligibility criteria for knowledge exchange funding. We are now implementing this new approach in our HEIF grant allocations.

New entrants to HEIF

A new entrant to HEIF is defined as a HEP, newly eligible or otherwise, that did not receive HEIF in the previous year.

Two adjustments have been made to the allocation method for HEIF main allocations, alongside the change in knowledge exchange eligibility criteria:

  • an allocation cap has been introduced in 2025 to 2026 for new entrants to HEIF, set at £500,000
  • from 2026 to 2027, HEPs whose allocation was constrained by the new entrant cap in the previous year will receive their full calculated level of allocation, without the annual increase modifier being applied

During their first year in receipt of HEIF, all new entrants must develop appropriate plans for use of the funding and an understanding of the priorities and purpose of the HEIF programme. The new measures prevent a very large funding allocation being made without plans and accountability in place for its effective use.

HEIF requirements and allocation approach

HEPs in receipt of HEIF must comply with the HEIF policies, priorities and accountability arrangements. This includes the July 2024 addendum regarding knowledge exchange data collection requirements and the September 2024 addendum regarding requirements on adoption of spin-out best practice.

We have maintained the same funding method and weightings for HEIF formula funding as were used in 2024 to 2025, other than the changes for new entrants. A detailed explanation of the HEIF funding methods is provided in the technical guidance.

The HEIF top-up is distributed 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.

The HEIF business and commercialisation supplement is allocated using HEPs’ business and commercialisation data. It supports only business and commercialisation activity that is additional to activity supported by the main HEIF and HEIF top-up allocations.

HEIF allocations to individual HEPs are shown in the data workbook Research England grant allocations data 2025 to 2026:

  • main HEIF and HEIF top-up allocations in Table 1
  • HEIF business and commercialisation supplement in Table 3

HEIF parameters for 2025 to 2026

Main HEIF (budget £240 million):

  • allocation cap: £4.67 million (£500,000 for new entrants)
  • funding allocation threshold: £250,000
  • maximum annual allocation reduction (downward modifier): 10%
  • maximum annual allocation increase (upward modifier): 10%

HEIF top-up (budget £20 million):

  • minimum allocation: £200,000
  • maximum allocation: £1 million

HEIF business and commercialisation supplement (budget £20 million):

  • maximum allocation: £1 million
  • no minimum allocation

Capital funding

The capital funding allocated to Research England for the financial year 2025 to 2026 totals £253 million.

Table F: total capital funding in financial year 2025 to 2026

Capital funding streams (financial year basis) 2025 to 2026 total (£ million)
Research Capital Investment Fund (RCIF) 174
Additional capital formula funding 59
National facilities and initiatives (from additional capital) 5
UK Research Partnership Investment Fund (UKRPIF) 15
Total capital funding 253

The total amount of funding available for formula-based capital funding in 2025 to 2026 is £233 million. This comprises Research Capital Investment Fund (RCIF) and additional capital formula funding.

Table G: formula-based capital funding in financial year 2025 to 2026

Formula-based capital funding (financial year basis) 2025 to 2026 total (£ million)
RCIF: Higher education institution (HEI) Research Capital England 92
RCIF: Higher Education Research Capital (HERC) England 83
Additional capital formula funding 59
Total formula-based capital funding 233

Research Capital Investment Fund (RCIF)

RCIF comprises two elements:

  • Higher education institution (HEI) Research Capital England
  • Higher Education Research Capital (HERC) England

HEI Research Capital England is allocated in proportion to:

  • QR funding for 2023 to 2024 and 2024 to 2025
  • research income from other selected (non-research council) sources, reflecting finance data for the most recent two years

HERC England will continue to be allocated in proportion to research income from research councils, reflecting finance data for the most recent three years.

As in previous years, we are not providing RCIF allocations in 2025 to 2026 to HEPs where the total sum of the two RCIF elements would be less than £10,000.

RCIF allocations are provided to sustain and strengthen the facilities and infrastructure that underpin research and enhance the research environment at HEPs. RCIF aims 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

Additional capital formula-based funding

The additional capital formula funding for 2025 to 2026 will be allocated in proportion to grant allocations for each of the RCIF elements (HEI Research Capital England and HERC England).

This additional capital formula funding is provided to support the maintenance, upgrade and upkeep of existing capital (buildings and estate) and not should not be used for new capital investments.

Capital funding requirements and allocation approach

Capital 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 so capital grants must be spent in full by 31 March 2026.

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.

Capital funding must be used for the purposes intended. However, 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.

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.

Allocations of formula-based capital funding are shown in Table 2 of the data workbook Research England grant allocations data 2025 to 2026.

National facilities and initiatives funding

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.

We have allocated £80 million from our research and knowledge exchange grant (including £14 million for museums, galleries and collections) and £5 million from capital funding for these purposes.

Museums, galleries and collections funding

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

Following the 2023 Research England Review of Higher Education Museums, Galleries and Collections, this funding is committed until academic year 2028 to 2029.

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.

The distribution of this funding to individual HEPs is shown in Table 4 of the data workbook Research England grant allocations data 2025 to 2026.

Terms and conditions of funding

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.

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

On 1 August 2025 we will publish the Research England terms and conditions for 2025 to 2026. HEPs should read these in conjunction with this publication and their grant letter.

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.

Fluctuation in grant allocations for HEPs

Most HEPs will receive different amounts of grant in 2025 to 2026 from that received in 2024 to 2025. This may be due to changes to each HEP’s data, relative to the sector as a whole, in the following areas.

Data which affects a HEP’s share of research funding:

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

Data which affects a HEP’s share of knowledge exchange funding:

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

Ask a question about the grant allocations

HEPs requiring further information should email: annualfunding@re.ukri.org

We aim to respond to your email within five working days.

Annex A: grant allocations guide 2025 to 2026

See the data workbook Research England grant allocations data 2025 to 2026 for our formula funding grant allocations to individual HEPs. This workbook will be updated if any further allocations are issued during the academic year, in addition to any separate notifications to HEPs.

The workbook consists of four tables.

Table 1: QR funding and HEIF grant allocations for the academic year 2025 to 2026 includes:

  • mainstream QR
  • London weighting on mainstream QR
  • QR RDP supervision fund
  • QR charity support fund
  • QR business research element
  • QR funding for National Research Libraries
  • HEIF main allocation
  • HEIF top-up allocation

Table 2: capital grant allocations for financial year 2025 to 2026 includes:

  • HEI Research Capital England
  • HERC England
  • total RCIF allocation
  • additional capital (in proportion to HEI Research Capital England allocations)
  • additional capital (in proportion to HERC England allocations)
  • total additional capital allocation

Table 3: further grant allocations for the academic year 2025 to 2026 includes:

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

Table 4: Museums, Galleries and Collections fund grant allocations for the academic year 2025 to 2026

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

Annex B: formula funding publications for 2025 to 2026

To support understanding of our funding and grant allocation methods, we provide a number of documents.

The following items are, or will soon be available on the Research England formula-based funding web pages for 2025 to 2026:

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