The Higher Education Innovation Funding (HEIF) review is examining how HEIF can best support the government’s priorities and incentivise effective knowledge exchange across the higher education sector.
Read more about HEIF and how the fund operates.
Government priority for HEIF
Government guidance from July 2025 states that HEIF‑funded activity must support the government’s priority of kickstarting economic growth. This mission is broadly defined as building an economy that grows, creates wealth and generates opportunities for all, across regions and communities. HEIF activity can contribute to this goal both directly and indirectly, including through improvements in productivity, innovation capability, skills, places and long‑term economic resilience.
In October 2025, Research England announced a review of the strategic direction of the HEIF programme. The October 2025 circular letter outlined the updated expectations and changes to HEIF delivery.
Phase 1: outcomes focused accountability
The first phase of the HEIF review aimed to ensure:
- stronger alignment of institutional HEIF plans (accountability statements) and uses with specific government priorities, and therefore delivery of economic growth
- improved quality of evidence that draws clearer links between HEIF use and delivery of government priorities
HEIF accountability statements are five-year plans that enable Research England to understand and evaluate how institutions intend to use their HEIF allocations to support government priorities.
HEIF accountability statements covering higher education providers’ (HEPs’) intended uses of HEIF funding for the period 1 August 2026 to 31 July 2031 were submitted in April 2026.
Research England has introduced a more outcome-focused approach to accountability statements, helping institutions clearly demonstrate the links between activity, objectives, outcomes and longer-term impact.
The 2025 HEIF policies and priorities set out the requirements from Research England and the Office for Students for the use of HEIF funding to deliver the government’s economic growth priority.
Knowledge exchange and economic growth framework
To support providers in delivering economic growth, Research England commissioned the UCI Policy Evidence Unit to develop a novel framework for university contributions to growth.
The framework sets out four dimensions of knowledge exchange activity that contribute to economic growth:
- strengthening growth drivers and easing bottlenecks in places and sectors
- commercialising and scaling knowledge and technologies
- supporting companies to innovate, compete and scale
- enabling people to engage productively in the economy
Phase 2: review and adjustment of the allocation formula
Phase 2 of the HEIF review is examining the HEIF allocation method to ensure it reflects the evolving nature of the higher education sector and supports the effective distribution of funding. This phase of the review aims to:
- improve the architecture of the formula to enable clearer and more responsive incentivisation to deliver intended outcomes, which includes increased agility to targeting specific government priorities
- increase the robustness of the mechanics of the formula through practical improvements, which enable HEIF to more effectively achieve its policy aims
These aims will be delivered through a redeveloped formula for HEIF allocations, implemented for the 2027 to 2028 academic year onwards. As part of the initial implementation, we will review the appropriateness of the principles, parameters and metrics currently used in HEIF and reflect on their continuation.
A longer term aim is to fulfil the potential of the new formula architecture with new metrics (as these become available; see Research England’s national knowledge exchange metrics programme).
Sector engagement
Research England continues to engage with higher education providers (HEPs), sector bodies and other stakeholders throughout the HEIF review to ensure that future proposals are informed by a broad range of perspectives and evidence.
Webinar and sector workshops
During June and July 2026, Research England held a webinar and three online workshops with representatives from HEPs.
The webinar provided an update on the objectives, scope and progress of the review. The workshops explored key aspects of the HEIF Review, including the:
- practical operation of the principles
- use of metrics and data within the allocation model
- role of HEIF in supporting local growth and place-based knowledge exchange activity
The workshops enabled participants to share their views relating to key themes and help inform the development of future proposals and the decision-making process.
Feedback from the webinar and workshops is being used to inform the development of proposals for consultation in autumn 2026.
Technical Expert Group
Research England has established a Knowledge Exchange Funding Technical Expert Group, comprising individuals with expertise in higher education knowledge exchange, research and innovation policy, funding methodologies, data and evaluation.
Since April 2026, the Technical Expert Group has met regularly to provide independent advice on the development of a future HEIF allocation approach. Discussions have covered:
- the strengths and limitations of the current formula
- options for future funding architecture
- thresholds and allocation parameters
- stability and transition arrangements
- approaches to recognising local growth and place-based activity
- the practical implications of proposed changes for institutions
Recommendations from the group are informing the development of future proposals.
Sector consultation survey
In autumn 2026, Research England will publish a proposal for an updated HEIF allocation approach. The proposal will be accompanied by an online survey, providing HEPs and stakeholders with an opportunity to comment on the viability and implementation of the proposed allocation model.
Feedback received through this consultation will help to inform the final decisions for the HEIF allocation approach.
The HEIF review: equality impact assessment has been published and will be reviewed on an iterative basis alongside the development of policy proposals.
Last updated: 3 September 2026