Reference: RE-P-2026-02
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 2026 to 2027 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 2026 to 2027 lists our formula-based grant allocations to each HEP.
Each HEP receiving formula-based funding from Research England in the published 2026 to 2027 grant allocations has been sent a grant letter. Changes in strategic direction from government mean that future investment through Research England may change. To support potential future changes, no new HEPs have received formula funding for 2026 to 2027.
We publish a number of documents to support understanding of our funding methods and the grant allocations for 2026 to 2027. A full list of links and descriptions for these documents is provided in Annex B.
Research England budgets for the 2026 to 2027 academic and financial years
The July 2026 guidance to UK Research and Innovation (UKRI) from the Department for Science, Innovation and Technology (DSIT) confirmed the funding available for the 2026 to 2027 financial year (April to March). This guidance also identified the policies and priorities that should underpin our approach to funding.
The confirmation of funding enabled us to confirm our budgets for 2026 to 2027, as communicated in our July 2026 circular letter Research England funding budgets for 2026 to 2027. 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 2026 to 31 March 2027) and all other formula-based funding is allocated by academic year (1 August 2026 to 31 July 2027).
Any significant future changes to our funding by government could affect the funding we are able to distribute to HEPs in the 2026 to 2027 academic year. This may include revising allocations after they have been announced.
Table A: summary of Research England funding to be distributed in 2026 to 2027
| Summary of Research England funding | 2026 to 2027 total (£ million) |
|---|---|
| Total research funding (academic year basis) | 2,201 |
| Total knowledge exchange funding (academic year basis) | 309 |
| Total capital funding (financial year basis) | 179 |
| Total academic and financial year funding | 2,689 |
Research funding
We are continuing the review of our strategic institutional research funding (SIRF), which will run through to 2030. The review will align with the ambitions set out in the government’s Post-16 Education and Skills White Paper for a higher education sector that drives research, innovation and economic growth. The core policy intent behind our research funding will remain consistent with previous years.
The transparency programme aims to improve the understanding and visibility of how SIRF is used by institutions. It will continue to be rolled out, subject to the outcomes of the academic year 2025 to 2026 pilot and the accompanying real time review.
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 2026 to 2027
| Research funding streams (academic year basis) | 2026 to 2027 total (£ million) |
|---|---|
| Quality-related research (QR) | 2,024 |
| Policy support fund | 29 |
| Enhancing research culture | 30 |
| Participatory research | 6 |
| Specialist provider element | 20 |
| National facilities and initiatives | 79 |
| School of Advanced Study and Institute of Zoology | 13 |
| Total research funding | 2,201 |
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.
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 Research England technical guides for formula-based funding.
The distribution of QR funding to individual HEPs is shown in Table 1 of the data workbook Research England grant allocations data 2026 to 2027.
Table C: budgets for the elements of QR funding in 2026 to 2027
| Elements of QR funding (academic year basis) | 2026 to 2027 total (£ million) |
|---|---|
| Mainstream QR funds including London weighting | 1,327 |
| QR RDP supervision fund | 350 |
| QR charity support fund | 223 |
| QR business research element | 116 |
| QR funding for National Research Libraries | 7 |
| Total QR funding | 2,024 |
Note for Table C: increases to smaller budgets may not be visible due to rounding
Other research funding
We are maintaining the following research funding streams:
- Enhancing Research Culture fund
- Participatory Research fund
- Policy Support Fund
- Specialist Provider Element
Funding methods for these programmes have not changed. Descriptions of funding methods are available in the Research England technical guides for formula-based funding.
Allocations to individual HEPs are shown in Table 3 of the data workbook Research England grant allocations data 2026 to 2027.
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 2026 to 2027
| Knowledge exchange funding streams (academic year basis) | 2026 to 2027 total (£ million) |
|---|---|
| Higher Education Innovation Funding (HEIF) formula funding | 284 |
| Research England Development (RED) fund | 18 |
| Connecting Capability Fund-RED (CCF-RED) | 7 |
| Total knowledge exchange funding | 309 |
Higher Education Innovation Funding (HEIF)
HEIF has been increased to £284 million for academic year 2026 to 2027. This reflects a 1.88% increase in the portion of HEIF originating from DSIT. Also included in the total budget is £48 million contributed by the Department for Education 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 2026 to 2027
| Elements of HEIF (academic year basis) | 2026 to 2027 total (£ million) |
|---|---|
| Main HEIF | 244 |
| HEIF top-up | 20 |
| HEIF business and commercialisation supplement | 20 |
| Total HEIF | 284 |
Note for Table E: increases to smaller budgets may not be visible due to rounding
Knowledge exchange eligibility criteria
In 2025 we updated our policy on the eligibility criteria for knowledge exchange funding.
New entrants to HEIF
Following the clarification of knowledge exchange eligibility criteria, and pending implementation of outcomes from the HEIF formula review, Research England introduced enhanced risk-mitigation measures for new entrants. These include:
- a £500,000 allocation cap for the first two years of HEIF funding
- enhanced accountability and reporting requirements
- a one-off HEIF risk assessment process to confirm entry to the 2026 to 2027 HEIF formula, ahead of the planned formula changes from academic year 2027 to 2028
HEIF requirements and allocation approach
HEPs in receipt of HEIF must comply with the HEIF policies, priorities and accountability arrangements.
Maximum allocation caps for all elements of HEIF (main, top-up, and business and commercialisation supplement) have been increased in line with the increase in the overall HEIF budget.
All other elements of the HEIF formula for 2026 to 2027 are unchanged from 2025 to 2026, including the funding method, weightings and allocation approach. A detailed explanation of the HEIF funding methods is provided in the Research England technical guides for formula-based funding.
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 2026 to 2027:
- main HEIF and HEIF top-up allocations in Table 1
- HEIF business and commercialisation supplement in Table 3
HEIF parameters for 2026 to 2027
Main HEIF (budget £244 million):
- minimum allocation threshold: £250,000
- maximum allocation cap: £4.74 million (£500,000 for new entrants)
- 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: £1.016 million
HEIF business and commercialisation supplement (budget £20 million):
- no minimum allocation
- maximum allocation: £1.016 million
Capital funding
Research England’s capital funding for the financial year 2026 to 2027 totals £179 million.
Table F: total capital funding in financial year 2026 to 2027
| Capital funding streams (financial year basis) | 2026 to 2027 total (£ million) |
|---|---|
| Research Capital Investment Fund (RCIF) | 174 |
| National facilities and initiatives | 5 |
| Total capital funding | 179 |
Table G: formula-based capital funding in financial year 2026 to 2027
| Formula-based capital funding (financial year basis) | 2026 to 2027 total (£ million) |
|---|---|
| RCIF: Higher education institution (HEI) Research Capital England | 90 |
| RCIF: Higher Education Research Capital (HERC) England | 85 |
| Total formula-based capital funding | 174 |
Note for Table G: figures may not add up to the total due to rounding differences.
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 2024 to 2025 and 2025 to 2026
- 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 2026 to 2027 to HEPs where the total sum of the two RCIF elements would be less than £10,000.
RCIF allocations are provided to sustain existing research facilities to support the maintenance and upkeep of existing infrastructure, including buildings, estate and equipment. It should not be used for new buildings or major new infrastructure.
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
Capital funding requirements and allocation approach
Capital funding is provided on a financial year basis. 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 2027.
As directed in the March 2026 circular letter Research Capital funding for financial year 2026 to 2027 onwards, from financial year 2026 to 2027 RCIF must be directed toward sustaining existing research facilities.
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.
Descriptions of RCIF funding methods are available in the Research England technical guides for formula-based funding.
Allocations of formula-based capital funding are shown in Table 2 of the data workbook Research England grant allocations data 2026 to 2027.
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 £79 million (including £14 million for museums, galleries and collections) and £5 million from capital funding for these purposes.
Higher education 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 the end of the current spending review period.
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 2026 to 2027.
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
HEPs should read the Research England terms and conditions of funding 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 2026 to 2027 from that received in 2025 to 2026. 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 2026 to 2027
See the data workbook Research England grant allocations data 2026 to 2027 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 2026 to 2027 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 2026 to 2027 includes:
- HEI Research Capital England
- HERC England
- total RCIF allocation
Table 3: further grant allocations for the academic year 2026 to 2027 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 2026 to 2027
See Annex B for information on the documents we publish to support understanding of our formula funding allocations.
Annex B: formula funding publications for 2026 to 2027
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 2026 to 2027:
- Research England grant allocations data 2026 to 2027: a workbook showing the amounts allocated to each HEP for each fund (see Annex A for a list of the funds included)
- circular letter: Research England funding budgets for 2026 to 2027
- specific guidance to UKRI, from DSIT, regarding the operation of Research England for 2026 to 2027
- payment information for HEPs: general information about how and when our payments are made
- payment profiles: a workbook showing the distribution of payments for each HEP for each fund
- Research England terms and conditions of funding
- grant data tables for each individual HEP: data behind the calculations for QR and HEIF funding
- Research England technical guides for formula-based funding: a detailed explanation of the funding method for each of our formula-based funds
- income data used in HEIF allocations
- worked example of calculation for quality-weighted volume
- worked example for QR RDP supervision funding
- mapping of REF 2021 units of assessment to Research England research cost bands and HESA cost centres
- template for the grant letter sent to HEPs
- individualised student data to inform funding allocations 2026 to 2027