Higher Education Innovation Funding policies and priorities 2025 to 2031

Higher Education Innovation Funding (HEIF) is designed to support and develop a broad range of knowledge-based interactions between higher education providers and the wider world, which results in economic and societal benefit to the UK.

HEIF is a joint programme of Research England and the Office for Students (OfS), reflecting joint funding from both the Department for Science, Innovation and Technology (DSIT) and the Department for Education (DfE).

Research England also works in collaboration with other UK Research and Innovation (UKRI) councils and with the other UK higher education funding bodies, complementing investments by these partners to ensure that policies and activities are coherent, and joined up.

This publication outlines:

the government’s priorities that apply to the funding, and Research England and OfS’s policies and priorities for use of the funding
HEIF accountability requirements for the 2025 to 2026 (transition year) allocation
requirements from HEPs for HEIF accountability statements for the period 1 August 2026 to 31 July 2031
ongoing requirements for HEIF annual monitoring statements and data reporting
the scope of HEIF-funded activity for the period 1 August 2026 to 31 July 2031

From the date of this publication, higher education providers (HEPs) should consider how their current approach to HEIF aligns with these new priorities and any adjustments that may be required to be implemented by the start of the new accountability period.

This publication updates and supersedes the previous HEIF policies and priorities (RE-P-2020-03 and addendums RE-CL-2024-05 and RE-CL-2024-09).

Policy developments and future direction

Over the period covered by the policies and priorities set out in this publication, Research England, in line with guidance from DSIT, are reviewing and adjusting aspects of HEIF. Research England are doing this to increase focus and delivery of the government’s economic growth priority. Key developments include:

a shift toward outcomes-focused accountability and assurance processes
longer-term exploration of review and adjustment to the HEIF allocation formula, aiming to better incentivise and reward alignment with HEIF policies and priorities

These changes build on recent evaluations of HEIF and incorporate learning from:

the 2022 to 2025 Evaluation of HEIF
the 2022 to 2023 knowledge exchange review
the development of the Knowledge Exchange Framework (KEF) as a novel knowledge exchange performance measurement tool

This document should be read in conjunction with Research England funding allocation documents, which provide details on the most recent funding settlement for knowledge exchange, including HEIF institutional allocations.

2026 Reporting deadlines for HEPs in receipt of HEIF

HEPs in receipt of HEIF are subject to the following reporting deadlines:

18 February 2026

Submit the HEIF Annual Monitoring Statements (AMS) for 2024 to 2025, including accountability information for 2025 to 2026. Relevant documents will be issued to applicable HEPs through the Research England data portal by 1 December 2025.

30 April 2026

Submit completed HEIF Accountability Statements for the period 2026 to 2027 and subsequent years. Documents will be issued to applicable HEPs through the Research England data portal.

30 June 2026

Submit optional HEIF case studies. Documents will be issued to applicable HEPs through the Research England data portal.

Any queries should be directed to kepolicy@re.ukri.org.

Government priorities that apply to HEIF

The government’s Plan for Change sets out a long-term vision to improve the lives of working people and strengthen the country. This plan is built around five missions, one of which is kickstarting economic growth.

As outlined in the most recent DSIT guidance for Research England, HEIF should focus on supporting economic growth. This mission is defined as building an economy that grows, creates wealth, and generates opportunities for all, across regions and communities.

Further detail can be found in the ‘How university knowledge exchange can contribute to delivering economic growth’ section.

The government’s Modern Industrial Strategy reaffirms its commitment to supporting universities through HEIF, recognising their critical role in driving and supporting innovation. It highlights the value of HEIF in areas such as de-risking early-stage innovation, supporting business development, and enhancing entrepreneurship training.

The higher education sector has a vital role to play in delivering the Industrial Strategy. In their use of HEIF, HEPs should consider how to support the strategy’s key foundations both at a national or local level, such as:

fostering long-term stability for business partners
strengthening the UK’s city regions and innovation clusters
advancing frontier industries
building lasting partnerships with business

In the context of the government’s higher education reform, the Post-16 Education and Skills White Paper sets out the importance of the role of universities as engines for innovation and skills to delivering the economic growth mission. It also emphasises the importance of HEIF in building on the fund’s previous successes to further drive economic growth outcomes in the future. Therefore, HEIF should be used to support the priorities set out in the white paper, including driving economic growth outcomes.

The DfE has directed the OfS to be responsible for the priorities and evaluation of the £48 million Strategic Priorities Grant HEIF contribution. HEIF continues to support the vital role of students in delivering knowledge exchange in pursuit of delivering these priorities, whilst also recognising that students themselves may benefit through, for example:

gaining core entrepreneurial skills and opportunities
enhanced employability prospects

The government continues its wish for Research England to maintain a robust, outcomes-based approach to HEIF funding. This includes:

demonstrating value for money
balancing predictable funding with rewards for dynamism
having due regard to burden

Accountability for public funding and delivery against government priorities, that balances the flexible use of HEIF, is ensured through:

submission and verification of HEIF Accountability Statements, which describe how HEPs have used HEIF flexibly to deliver the intended outcomes
annual monitoring statements to evidence how HEIF has been used to deliver outcomes
evidence of performance published in the KEF
support for sector-led Knowledge Exchange Concordat activities to drive continuous improvement

The government’s long-standing priority (since 2010) that HEIF should reward and incentivise performance remains, ensuring that only effective performers receive funding.

Research England and Office for Students’ funding priorities

In its guidance for Research England funding for 2025 to 2026, DSIT outlined the following priorities for HEIF:

HEIF funded activity should support the government priority of kickstarting economic growth. Activities should support increased business engagement and commercialisation, boost local economic growth and encourage entrepreneurship.

Further adjustments are needed to ensure this, we therefore support plans for the review and reform of the metrics and approach to allocation for HEIF.

We are implementing learning from the recent HEIF evaluation and wider Research England and OfS activities to review elements of our approach to HEIF in order to increase focus towards the government’s economic growth priority. In the next phase of work, we will also explore how the HEIF allocation formula may be reviewed and adjusted to:

more clearly incentivise and reward the policies and priorities laid out in this publication
ensure that the scope and scale of allocations most effectively support the evolving higher education sector

Research England recognises the diversity of unique expertise and contributions made by the higher education sector across a wide range of knowledge exchange modalities. By aligning HEIF use with their own specialist strengths, strategic objectives and local priorities, HEPs should strategically maximise their unique strengths and distinctiveness to deliver the greatest benefit.

Advice from the University Commercialisation and Innovation (UCI) Policy Evidence Unit outlines how HEPs can use knowledge exchange to enhance UK competitiveness and drive economic growth. This is explored further in the section ‘How university knowledge exchange can contribute to delivering economic growth’.

We address the government, Research England and OfS priorities through the following policies and principles.

HEIF continues to support HEPs in England across a diversity of knowledge exchange activities, to work with business, charities, and the wider community for economic and social benefit, where this drives economic growth.

HEIF must be used solely for knowledge exchange activity. See the Eligible use of HEIF section for definitions and guidance.

HEIF should address the priorities outlined in the government priorities that apply to HEIF section. We may request further information as part of annual monitoring in any year to ensure that we are effectively addressing government priorities, including across both Research England and OfS strategic objectives.

HEPs have discretion to use funding for the full range of knowledge exchange activities, beyond those counted in the funding formula. It will be of continuing importance that institutions continue to innovate in their knowledge exchange activities and utilise their strengths to most effectively deliver growth.

HEPs should align HEIF use, driven by institutional strategies which recognise their strengths, with their distinctive capabilities to contribute effectively to the economic growth mission, including through the creation of deeper pockets of excellence.

HEPs are encouraged to collaborate where it could improve the quality or streamline the delivery of their knowledge exchange projects, programmes, or strategy. For example, the Connecting Capability Fund-Research England Development (CCF-RED) funded shared technology transfer office projects. This pilot examined how universities with smaller research portfolios and limited intellectual property (IP) and partner networks could establish sustainable shared technology transfer models to more effectively spin out existing IP.

HEIF cannot be used to fund capital expenditure such as building or refurbishment works, or significant purchases or upgrades of equipment.

HEPs should consider their KEF results when planning HEIF use.

Where future exercises associated with the Knowledge Exchange Concordat may take place, we expect HEPs to participate. The Knowledge Exchange Concordat provides an important sector led opportunity to identify and set high KE standards across universities and commit to furthering best practice. We are committed to giving our full support to sector bodies in delivering and developing the exercise, working with other UK higher education funding bodies.

If HEIF has played a key or pivotal role in supporting a knowledge exchange project, HEPs should use the Research England logo and reference the support of Research England through HEIF whenever possible. Refer to the UKRI brand guidelines for details.

Funding is allocated through formula, focusing on rewarding and incentivising performance. The success of HEIF is judged by government in public funding cases in terms of the economic and societal impact achieved. HEPs have the flexibility to use funds to maximise societal and economic outcomes and impacts, responding to the needs of their external partners.

Income remains the best available proxy we have for the impact of knowledge exchange activities on the economy and society; hence, it is the best measure of performance and is used in the formula allocation of HEIF. The focus of HEIF is not on income generation for the HEP, though we recognise that HEPs must pay regard to the sustainability of their activities. Our accountability and annual monitoring processes will seek to ensure that we understand, incentivise, monitor, and evaluate the economic and societal outcomes and impacts delivered by HEIF, to guard against an undue focus on income achievement.

HEIF allocations are calculated annually based on the latest data to encourage dynamism and to reward recent performance. The general features and parameters of the HEIF formula are set out in the publication Research England: how we fund higher education providers. The specific parameters applied to a specific allocation year are detailed in the annual funding allocations.

To meet the government’s priority that only effective performers are funded, we currently apply a minimum threshold to allocations.

How university knowledge exchange can contribute to delivering economic growth

The ways in which university knowledge exchange could contribute to delivering economic growth can be viewed through the lens of how they can help to make sectors, places and organisations more competitive. To support HEPs to make the most of their individual strengths in driving growth, we have commissioned advice from Research England’s national knowledge exchange metrics advisors, the University Commercialisation and Innovation (UCI) Policy Evidence Unit. UCI have identified four dimensions in which universities could be expected to address this competitiveness, and therefore growth challenge, through their knowledge exchange activities, including through the use of HEIF.

It’s important to recognise that knowledge exchange activities can take many forms. These may involve working directly with external partners, or more indirectly—by helping partners identify where and how they can intervene, and by strengthening the conditions that enable knowledge exchange to happen. This is particularly relevant to Dimension 1.

Each of the four dimensions can be supported through a wide variety of knowledge exchange mechanisms, including: collaborative and contract research, spinouts, intellectual property licensing, training, access to specialist facilities and equipment, consultancy, networks, and others. These dimensions are set out and illustrated in Figure 1.

Graphical representation of the UCI advice set out in the paper where universities and partners deliver knowledge exchange through their research, education, social networks, people (leaders, academics, students, KE staff) and facilities equipment, data and tools through the following four dimensions to deliver economic growth:1. Strengthening growth drivers and easing bottlenecks to place or sector competitiveness 2. Commercialising and scaling knowledge and technologies to create new sources of wealth 3. Supporting organisations to become competitive, creating and capturing value for the UK 4. Enabling people to participate and engage productively in the economy

Figure 1: Four dimensions for achieving economic growth through university knowledge exchange

Four dimensions for achieving economic growth through knowledge exchange

Universities and partners may deliver knowledge exchange using their:

research
education
social networks
people (leaders, academics, students, knowledge exchange staff)
facilities and equipment
data
tools

These resources are utilised through the following four dimensions.

Dimension 1: Strengthening growth drivers and easing bottlenecks in places and sectors

Universities can help places and sectors become more competitive, attracting and retaining the resources, companies and people needed to create and capture value for the region and the UK. This includes through working to build up and strengthen:

the enabling resources and conditions of the place or sector, by working to develop and facilitate access to translational research and innovation infrastructure and tools, funding and investment, global markets, existing knowledge, effective public services, and cultural amenities
the institutions that shape behaviours and actions of individuals and organisations including by helping to inform government policies, regulations and standards, legal and IP frameworks, and cultural norms
the system-level capabilities and strategic directions, for example through providing or supporting leadership and governance within places or sectors, supporting cluster building, building shared visions, mobilising communities to action, and strengthening innovation and entrepreneurial capabilities

Dimension 2: Commercialising and scaling knowledge and technologies

Universities create new sources of wealth, particularly through emerging technologies and knowledge leading to breakthrough and incremental innovations across products, processes, tools and organisational approaches. This also includes working with partners in the economy to accelerate the widespread adoption and diffusion of emerging technologies.

Dimension 3: Supporting companies to become competitive

Universities work with partners to help them build up and access new assets and resources, including:

technologies and tools
human capital
physical infrastructure
data or information and communication technologies
networks
investment

As well as developing necessary strategic and operational capabilities to combine these resources to innovate and compete successfully for UK benefit.

Dimension 4: Enabling people to engage productively in the economy

This includes:

upgrading skills and driving continuous learning (including their ability to leverage new tools, machines and technologies to become more productive)
shaping mindsets and ambitions around work
improving people’s physical and mental health and wellbeing
developing interventions to ensure people’s skills and experiences are aligned with opportunities to contribute productively to the economy

Through these contributions, universities have the potential to contribute to driving economic growth through helping to develop more competitive and productive sectors, places and people. Universities will make valuable contributions by working across different types of sectors including:

frontier industries
foundation industries
legacy industries
the public sector
the third sector

It is recognised that through these dimensions of activities universities play a critical role in driving economic growth at both the locally and the national level. Illustrative, but non exhaustive examples of these contributions may include the following.

Locally:

addressing regional skills gaps
contributing to the development of local infrastructure and public services
engaging with local businesses and communities

Nationally:

fostering entrepreneurship
commercialising new technologies
creating spin-out companies
collaborating with industry partners to drive economic development

Business and Commercialisation supplement

Research England currently allocate a portion of the total HEIF budget to the Business and Commercialisation supplement. The supplement drives additional business collaboration and commercialisation activity as an important and focused lever towards achieving the government’s economic growth priority.

The supplemental funding must be used solely for business and commercialisation activity, additional to that already supported through HEIF. Areas for potential investment by HEPs include, but are not limited to:

intellectual property exploitation
business engagement with large and small businesses
local economic development

Supplement allocations are calculated using a performance-based data-driven formula, primarily using a subset of the tested income-based metrics used in the core HEIF formula that capture specifically collaboration with business or commercialisation. Only HEPs in receipt of HEIF in a given year are eligible to receive a supplement allocation.

Subject to Research England funding levels, our intention is to continue to provide this supplement annually, with consideration of this approach being within the scope of the work to review and adjust the HEIF formula.

Research England data reporting requirements

In July 2024, the OfS communicated to HEPs that the Higher Education Business and Community Interaction (HE-BCI) survey, and wider knowledge exchange data, would no longer be part of its data requirements.

Knowledge exchange data, including the HE-BCI survey, is integral to the work of Research England to enable the allocation of HEIF and for use in the KEF.

We expect HEPs eligible for Research England knowledge exchange funding for a given year to submit knowledge exchange data for that year. This includes HE-BCI and any further knowledge exchange data that may be requested in future by Higher Education Statistics Agency (HESA) or Research England.

For HEPs in receipt of Research England knowledge exchange funding for a given year, the submission of knowledge exchange data for that year, including HE-BCI, is required under paragraph 26 of the Research England terms and conditions.

Equality, diversity and inclusion (EDI)

Research England has a long-standing commitment to advancing EDI in the research and knowledge exchange system, including and valuing:

a diversity of approaches, skills and perspectives
supporting collaborative and creative problem-solving
fostering novel ideas and innovations

The impact and benefit of research and innovation will be more relevant and useful for everyone when people with different expertise, experiences, approaches and ways of thinking work together. Since our inception in 2018, we have supported the enhancement of EDI in the English higher education sector through policy development, funding, and sector engagement.

We have published an EDI action plan for Research England. The plan outlines steps that will be taken towards creating and sustaining the conditions for a diverse and inclusive research and knowledge exchange system in the higher education sector.

Through our Strategic delivery plan we have committed to embedding EDI considerations throughout our policy activity and funding delivery, including:

reviewing the contribution our programmes make to EDI in the higher education sector by working collaboratively with the sector to deliver our EDI action plan
driving the development of a more inclusive research and knowledge exchange system as a sector leader, funder, and employer, and through enhancing the evidence base

The HEIF Accountability Statements will now include a requirement for HEPs to outline EDI considerations in relation to knowledge exchange.

Spin-out best practice

The 2023 Independent Review of Spin-out Companies proposed recommendations to help improve the creation and growth of university spin-out companies. Research England, working with the UK higher education funding bodies, has taken steps to improve the spin-out process. This includes monitoring the adoption of best practice policies on spin-out terms and related issues, and publishing a list of UK higher education providers that have voluntarily adopted these best practice policies.

Research England continues to expect HEPs in receipt of HEIF to whom it is relevant to take account of the following best-practice documents in determining their policies and approaches to spin-out companies:

the report of the Independent Review of University Spin-outs, specifically Recommendation 1
TenU’s USIT Guide (university spin-out investment terms)
TenU’s USIT for Software Guide (university spin-out investment terms)

HEPs who have not yet done so but wish to report voluntary adoption of the best practice documents to Research England should complete the Spin-out adoption online declaration form using Research England Data Portal institutional login information.

HEIF accountability 2025 to 2026

To ensure ongoing accountability for the 2025 to 2026 allocations, we will request information about the use of HEPs’ current allocations through the 2024 to 2025 HEIF AMS.

Use of HEIF funding for the 2025 to 2026 allocation period may continue to address the priorities set out in the previous HEIF policies and priorities publication through the 2021 HEIF accountability statements, but should also start to take into account the priorities set out in this document as appropriate.

As part of the AMS, HEPs will be asked to provide an overview statement describing the basis for accountability and assurance in relation to their 2025 to 2026 HEIF allocation. This should include one of the following:

confirmation that the HEP continues to be guided by the plans set out in its 2021 HEIF Accountability Statement
explanation of how the HEP has already begun to embed new priorities into its current allocation period

HEPs should keep appropriate records of exceptional uses of HEIF or variations from their previously approved HEIF accountability statements.

We will issue the HEIF AMS to eligible providers by 1 December 2025, with a submission deadline of 18 February 2026. Providers that did not receive HEIF funding for the 2024 to 2025 allocation period will not be required to complete a HEIF AMS in December 2025. For information on how accountability data will be collected for these new recipients for the 2025 to 2026 period, refer to the Accountability requirements for new HEIF recipients.

HEIF accountability statements 2026 to 2031

Purpose of the HEIF accountability statement

The HEIF accountability statement is designed to enable Research England to understand and evaluate how HEPs plan to use their HEIF allocations to support the government’s economic growth priority over the next five years.

The next full accountability statements will cover the period 1 August 2026 to 31 July 2031. From the date of this publication, HEPs should begin reviewing how their current plans for HEIF align with the new priorities outlined in this document. HEPs should consider any adjustments needed before the new accountability period begins in August 2026.

Evolving the accountability approach

As part of our ongoing review and adjustment of HEIF, Research England is evolving its accountability approach to support a more outcome-focused model. This aims to help HEPs better articulate how their use of HEIF funding contributes to meaningful outcomes and impacts.

To support the new outcomes-focused model, we are introducing a logic model approach to accountability. This model encourages HEPs to clearly link their strategic objectives and planned HEIF activities to the intended outcomes and impacts, providing a structured framework for long-term planning.

Foundation in programme theory

This approach builds on the findings of the 2025 Evaluation of HEIF, which presented a Programme Theory for HEIF. The programme theory sought to capture the causal pathways through which the HEIF programme contributes to impacts aligned with government priorities.

We have distilled the programme theory into a simplified knowledge exchange logic model (with non-exhaustive examples) to provide the basic structure for the HEIF accountability statements:

Inputs: government KE policy priorities, provider KE strategies, KE funding
Activities: leveraged from research, people and infrastructure
Outputs: research or KE networks, partnerships, skills development to support or as part of knowledge exchange, or knowledge exchange infrastructure development
Intermediate outcomes: knowledge exchange collaboration, knowledge deployment, improved commercial and enterprise skills
Longer term outcomes: improved research access, partnerships, commercialisation, start-ups, skills pipeline infrastructure or reduced productivity gaps
Impact: economic, societal, cultural, environmental outcomes

Figure 2 illustrates how the simplified logic model maps against the accountability information requested from HEPs.

Figure 2: Simplified knowledge exchange logic model mapped to HEIF accountability statement structure

Simplified knowledge exchange logic model mapped to accountability statement.

Inputs including government knowledge exchange policy priorities, provider knowledge exchange strategies, knowledge exchange funding map to strategic objectives, HEIF Government mission, Research England and OfS priorities.
KE activities leveraged from research, people or infrastructure map to HEIF supported activities.
Outputs including research and knowledge exchange networks and partnerships, skills development to support knowledge exchange, knowledge exchange infrastructure development map to outputs from HEIF supported activities.
Outcomes include both intermediate knowledge exchange collaboration, knowledge deployment, improved commercial and enterprise skills; and long term improved research access, partnerships, commercialisation, start-ups, skills pipeline infrastructure and reduced productivity gaps. These both map to planned intermediate and long term outcomes from HEIF supported activities.
Impact including economic, societal, cultural, environmental outcomes map to how intent to impact economic growth nationally, regionally, socially.

The accountability statement enables HEPs to demonstrate how they plan to use HEIF to achieve their intended outcomes and impacts over the five-year period. However, Research England recognises that:

innovation is not always linear, the process may be iterative and evolve over time
creativity and serendipity are essential elements of quality knowledge exchange
HEPs should remain agile and responsive to emerging opportunities throughout the period

Substantive changes to HEIF five-year accountability plans can be reported through the HEIF Annual Monitoring process, allowing for flexibility and adaptation.

Research England also acknowledges that some outcomes, such as spin-out creation, may require extended timeframes. In such cases, HEPs may include planned activities that extend beyond the formal accountability period, where relevant.

Submission of accountability statements

Accountability statements will be collected through the completion of an online questionnaire distributed to HEPs through the Research England Data Portal.

Research England will also provide HEPs with a reference copy of the template in MS Word format to facilitate internal drafting and approval processes. For submission purposes, all content will need to be copied into the online form. The online form will accept rich text formatting, including images and tables. Progress made in completing the online form can be saved and it can be returned to for completion at a later date.

Accountability statement structure and content overview

Figure 3 sets out the high-level structure of the accountability statements. Noting that the sub-sections within section 3 should be repeated for each individual strategic objective, as necessary

Section 1: Introduction to the strategic objectives for knowledge exchange

Provide an institutional-level overview that explains how your strategic objectives for knowledge exchange align with your broader institutional mission, goals, or other relevant frameworks. This section should help Research England understand the context and rationale behind your knowledge exchange objectives.

You are encouraged to use this opportunity to highlight your institution’s unique strengths and areas of specialism, those that enable you to make distinctive contributions to the higher education sector. Where appropriate, you may wish to draw on your KEF results to identify and evidence specific areas of strength in knowledge exchange.

This section should clearly articulate how and why your knowledge exchange objectives have been developed, and how they reflect your institution’s strategic priorities and strengths.

Section 2: Equality, diversity and inclusion

Outline your institution’s approach to ensuring knowledge exchange activities and management of these activities are inclusive and not likely to present barriers to participation or disadvantage any groups from participation. If knowledge exchange is already embedded within your overarching institutional EDI frameworks, a summary of those processes is sufficient.

There will be the option to provide further EDI-related information under section 3 where relevant to a given objective. For example, if a particular knowledge exchange activity has been subject to an EDI impact assessment, further information can optionally be included within section 3.

Note: Research England will not assess EDI performance but will seek assurance that EDI considerations are in place for knowledge exchange activities.

Section 3: Individual KE strategic objectives, inputs, outcomes and economic growth

We want to understand how your strategic objectives and subsequent planned use of HEIF will ultimately deliver the intended impact of driving the government priority of kickstarting economic growth.

You may wish to use the knowledge exchange logic model provided (Figure 2) to guide the structure of your response.

For each strategic objective provide the following:

outline the institutional strategic objective for knowledge exchange
outline the planned knowledge exchange activities supported by HEIF to deliver this objective, and the expected outputs
outline the intended outcomes and impacts from the activities that will deliver the government’s economic growth priority
if the business and commercialisation supplement is being used in support of this strategic objective, outline any additional activities, outputs or scale up supported by the supplement
describe how you will use data (quantitative or qualitative) to monitor progress against delivery and success of this objective, including data sources and frequency of collection
outline, if applicable, any EDI considerations specific to this objective that were not covered in Section 2

Repeat this section for each strategic objective. We recognise that some activities or detail may be relevant across multiple objectives. Cross-referencing or repeat text is acceptable where activities overlap.

Section 4: Oversight and governance of HEIF

Provide an overview of your institutional policies and procedures for:

governance and oversight of HEIF, including expenditure management and assurance mechanisms, such as committees or decision-making structures
how you will monitor progress against your strategic objectives for knowledge exchange

Section 5: Financial return

Complete the Excel financial return template provided via the Research England Data Portal. This includes:

Worksheet 1: HEIF Main Allocation
Worksheet 2: HEIF Business and Commercialisation Supplement (if applicable)

Provide an indicative percentage breakdown of planned expenditure and infrastructure costs for each year from 2026 to 2031.

Note:

this data informs national-level analysis by Research England of knowledge exchange behaviours and trends
the format will be mirrored in future HEIF AMS
HEPs are not bound to allocate future HEIF funding exactly as indicated
individual financial returns will not be published, but sector-level summaries may be shared by knowledge exchange cluster or region

The deadline for submission of completed accountability statements for the period 2026 to 2027 to 2030 to 2031 is 30 April 2026

Research England review of accountability statements

Research England and the OfS are required to manage public funding responsibly. HEIF allocations must be used for eligible knowledge exchange activities that support Government priorities. Continued funding is conditional on our satisfaction that HEIF is:

used appropriately and effectively (on knowledge exchange)
focused on key priorities
managed responsibly, as described in the accountability statement

The information provided in accountability statements serves two key purposes:

verification: ensuring that individual HEPs’ plans for HEIF are in line with expectations
insight: providing sector-wide evidence to inform future policy development

Research England will review the accountability statements to verify that HEPs:

have strategically-led plans that support the Government’s economic growth priority
have given due consideration to EDI
are using HEIF exclusively for eligible knowledge exchange activities
have plans to monitor activities, outcomes and any impacts delivered through HEIF support
have robust processes in place to manage public funding and monitor success

HEPs should ensure that there is coherence and consistency across the sections of the accountability statement. For example, the plans for how HEIF will support KE activities should be consistent with the financial return.

Following assessment of the statements, we will confirm whether the submission is satisfactory, or we will request additional information.

HEPs may be required to submit further information for purposes of future HEIF evaluations, and to participate in relevant exercises.

Publication and data protection

Approved accountability statements (non-financial elements only) may be published by Research England as individual documents, and individual sections may be used in a sector-wide synthesis reports. Individual financial returns will not be published, but sector-level summaries may be published by knowledge exchange cluster or region. HEPs are responsible for ensuring that all submissions comply with UK Data Protection Legislation.

HEIF case studies

We invite institutions to submit up to two case studies that demonstrate the value of HEIF to creating economic and societal impact in the UK through knowledge exchange activities that meet government priorities. Where relevant, the case studies should focus on how the activity support economic growth. We intend to use these case studies to celebrate the successes of the sector, inform policy development and demonstrate the value of HEIF to a range of stakeholders, including OfS, DSIT and DfE.

We welcome submission of case studies both where HEIF has been the main source of monies, or where it has contributed a smaller proportion of the monies but where that proportion has been pivotal to an outcome. The latter is important for demonstrating the importance of HEIF in being the cornerstone of support which allows for crowding in from other sources.

Submission is voluntary and entirely separate from the HEIF accountability and monitoring processes. Case studies may be published in their entirety so the text should be of publication quality, include all relevant information, and not cross-refer to other accountability or monitoring documentation. HEPs are responsible for ensuring that all submissions comply with UK Data Protection Legislation.

The activities detailed in the case studies may duplicate descriptions provided elsewhere such as KEF narrative statements or update previously provided case studies.

Submission is invited through an online submission form that will be made available to providers in receipt of a HEIF allocation through the Research England Data Portal.

The deadline for submission of case studies is 30 June 2026. We may invite further optional case studies to be submitted during the five-year accountability period to highlight specific areas of interest.

Case study content

The online form will invite HEPs to reflect on their successes and provide up to two case studies of exemplar knowledge exchange projects or activities that have been supported by HEIF, including the following information in up to 500 words:

brief description of activity
in what way the activity was supported by HEIF, for example, knowledge exchange staff posts, academic staff buy out
in what way did this activity achieve economic or societal benefit?

We are particularly interested in how, where appropriate, uses of HEIF are delivering economic growth outcomes.

There is also an option to provide a high quality image (where the HEPs own full copyright and are able to grant permission for the image to be used in Research England and OfS publications).

HEIF annual monitoring statements

Purpose

The HEIF AMS is collected by Research England following the end of each funding year to verify that HEIF has been used to meet institutional strategic objectives, in line with government missions, and delivers value for money. Financial return data supports economic impact evaluations to demonstrate to value of HEIF to government through HEIF return on investment calculations.

HEIF AMS content and timescales for submission

Research England will issue a request for annual monitoring information for the most recently completed funding year each December, for submission in the following February.

Requests will be issued by email to heads of provider, copied to knowledge exchange contacts, and will provide a link to the Research England Data Portal.

Submission will be through completion of an online questionnaire.

The information requested will include

A financial report, to report actual expenditures of HEIF and any related Research England knowledge exchange funding streams, categorised by ‘type of expenditure’:

investment in dedicated knowledge exchange staff: costs of employing and supporting staff involved directly in knowledge exchange (for example, knowledge exchange offices; enterprise offices)
investment in academic staff: cost of knowledge exchange training for academics and buying the time of academics for knowledge exchange activity, as well as supporting salaries for leadership in knowledge exchange
expenditure towards other costs: non staff costs related to all forms of knowledge exchange projects including proof of concept, matched and seed funding and pump-priming or events

A narrative element to provide information about how the most recent HEIF and related funding stream allocations have been used to support the institutional strategic objectives and the government’s economic growth priority through the activities, outputs, and outcomes as set out in the accountability statement.

A question asking HEPs to notify Research England about any significant changes to their planned use of HEIF as set out in the HEIF accountability statement.

The HEIF AMS may request additional information if additional reporting or accountability is required for a given year.

From the 2026 to 2027 HEIF AMS allocation period onwards, the narrative section will be updated to align with the outcomes-based approach of the accountability statements. This will likely include a question asking how each HEP is monitoring its progress against its own strategic objectives, using the data points outlined in its accountability statement.

Importantly, we will not require individual data submissions. Instead, HEPs will be asked to provide a summary of their understanding of progress, informed by their own data.

We do not anticipate any changes to the format of the financial statements.

We will set out any changed or additional monitoring requirements in the relevant annual monitoring exercise.

Detailed guidance information for the most recent HEIF AMS collection is available on the Research England HEIF page.

Accountability requirements for new recipients of HEIF

Eligibility criteria for knowledge exchange funding

Research England implemented clarified eligibility criteria for Research England knowledge exchange funding for the allocation year 2025 to 2026.

Where a provider is successful in achieving a HEIF allocation for the first time, that provider will be required to comply with Research England terms and conditions, including the submission of detailed accountability information and plans for new entrants.

Allocations for new entrants

In order to mitigate risk to the effective use of public funding, new recipients of HEIF may be subject to additional requirement or funding limitations for the first years of funding.

A new recipient of HEIF is defined as a provider, newly eligible or otherwise, that did not receive HEIF in the previous year, whether or not they received HEIF prior to that time.

Accountability requirements

New recipients of HEIF will be subject to HEIF accountability, based on the accountability requirements set out in this document, but commensurate with the size of their allocation (whether capped or uncapped) and the point in the five-year accountability period in which they gain a HEIF allocation.

Eligible use of HEIF

The Higher Education and Research Act 2017, section 93 (4) defines knowledge exchange as:

(4) For the purposes of this Part, “knowledge exchange”, in relation to science, technology, humanities or new ideas, means a process or other activity by which knowledge is exchanged where:

(a) the knowledge is in, or in connection with, science, technology, humanities or new ideas (as the case may be), and

(b) the exchange contributes, or is likely to contribute, (whether directly or indirectly) to an economic or social benefit in the United Kingdom or elsewhere.

The general principle of HEIF-funded activities is that they must be recurrent activities for the purpose of exchanging knowledge with external partners. Activities may be either actual knowledge exchange, capacity building or directly leading to knowledge exchange.

Research or teaching-related activities are considered as normal academic activity of an institution and therefore should not be supported by HEIF.

What HEIF can be used for

The HEIF-indicative finance monitoring template, which forms part of the 2026 to 2031 accountability statement submission, contains non exhaustive examples of activities that are included in each HEIF reporting infrastructure category. These examples are also provided in Annex A of the HEIF annual monitoring statement guidance.

The following FAQs provide further examples of various HEP activities that often arise in HEIF queries, with discussion about whether Research England would consider these to be eligible or not for HEIF support.

Ineligible costs

HEIF is provided as a recurrent fund to support knowledge exchange activities. It should not be used to purchase, refurbish or upgrade research or specialist equipment or building costs, even if they relate to collaborative work with an external partner.

The basic premise is that HEIF should not be used for any equipment costs. But some low levels can be accepted, for example, low-cost equipment to directly support a knowledge exchange role, for example laptop for a knowledge exchange professional post travelling for external engagement.

Conferences

Eligible costs

HEIF may be used to support obtaining impact from research, for example, attendance at or running costs for conferences primarily focused on engaging with industry, policymakers, community groups or other external partners.

HEIF may also be used for membership fees for membership groups that have a focus on knowledge exchange, engaging with industry, or other external partners.

Ineligible costs

HEIF should not be used to support the general dissemination or publication of research to the academic community. As such, attendance at academic or research conferences or membership of research-focused groups should not be supported by HEIF, either in the UK or worldwide.

Research administration and dissemination

Ineligible costs

HEIF should not be used to support general research publication or for the academic community, this includes the administration of REF or preparation of REF impact case studies.

Eligible costs

HEIF may be used to support achieving impact from research where the primary purpose or focus of the publication, dissemination or broadcast is engaging with a non-academic audience. For example:

industry-focused publications
broadcasts, podcasts or performances aimed at public engagement

Careers centres or posts

Eligible costs

HEIF may be used to support careers centres or posts where the primary focus is on providing benefits to external partners or facilitating entrepreneurial skills development in students.

While the OfS encourages the engagement of students in knowledge exchange activities, and we would expect students to benefit from career development activities. It must also be a knowledge exchange activity for the benefit of external partners. For example, staff who:

work with employers to identify skills gaps
enable students working with industry for the benefit of the employer partner
provide entrepreneurial training

Eligible costs

HEIF may be used to support the organisation, funding or administration of knowledge exchange programmes, subject to other sources of funding. For example, KTPs.

Further information

For queries about eligible HEIF activities, email kepolicy@re.ukri.org.

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