Reference: RE-P-2024-03
Introduction
This publication summarises the basis for Research England’s formula-based grant allocations to higher education providers (HEPs) in England in 2024 to 2025 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 2024 to 2025 lists our formula-based grant allocations to each HEP.
Each HEP receiving formula-based funding from Research England in the published 2024 to 2025 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 2024 to 2025. The expected timetable for publication of these can be found in Annex B.
All formula funding materials for 2024 to 2025 will be available via the Research England formula-based funding web pages.
Research England budgets for the 2024 to 2025 academic and financial years
The July 2024 guidance letter to UK Research and Innovation (UKRI) from the Department for Science, Innovation and Technology (DSIT) confirmed the funding available for the 2024 to 2025 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 honour the expected budgets for 2024 to 2025 announced in July 2023. These budgets were confirmed, with some small adjustments, in our July 2024 circular letter Research England funding budgets for 2024 to 2025. 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 2024 to 31 March 2025) and all other formula-based funding is allocated by academic year (1 August 2024 to 31 July 2025).
Any significant future changes to our funding by government could affect the funding we are able to distribute to HEPs in the 2024 to 2025 academic year. This may include revising allocations after they have been announced.
Table A: summary of Research England funding to be distributed in 2024 to 2025
| Summary of Research England funding | 2024 to 2025 total (£ million) |
|---|---|
| Total research funding (academic year basis) | 2,170 |
| Total knowledge exchange funding (academic year basis) | 328 |
| Total capital funding (financial year basis) | 316 |
| Total academic and financial year funding | 2,814 |
Research funding
Our guidance from the government focuses on prioritisation of the review into our strategic institutional research funding (SIRF), which will continue until 2030. We are asked to focus on the robust assessment of the value of our flexible formula-based research funding to inform future funding decision-making. Within this context, pending further evidence or direction, the underlying policy intent for our research funding will remain unchanged from 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 2024 to 2025
| Research funding streams (academic year basis) | 2024 to 2025 total (£ million) |
|---|---|
| Quality-related research (QR) | 1,986 |
| Policy Support Fund | 29 |
| Enhancing Research Culture | 30 |
| Participatory Research | 6 |
| Specialist Provider Element | 20 |
| National facilities and initiatives | 86 |
| School of Advanced Study and Institute of Zoology | 13 |
| Total research funding | 2,170 |
Quality-related research (QR) funding
In setting the QR budgets shown in Table C, we have sought to maintain stability in our investment in research and continue to recognise the outcomes of the Research Excellence Framework (REF) 2021.
As notified in our June 2024 circular letter Data and payments for 2024 to 2025 formula-based funding, we have not used data from the Higher Education Statistics Agency (HESA) 2022 to 2023 Student record in our funding calculations. QR research degree programme (RDP) supervision funding allocations for 2024 to 2025 are instead based on the allocations made in 2023 to 2024, with the increased budget reflected proportionally.
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 2024 to 2025.
Table C: budgets for the elements of QR funding in 2024 to 2025
| Elements of QR funding (academic year basis) | Total (£ million) |
|---|---|
| Mainstream QR funds including London weighting | 1,303 |
| QR RDP supervision funds | 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
As indicated in previous years, we are maintaining the following research funding streams:
- Enhancing Research Culture fund
- Participatory Research fund
- Policy Support Fund
- Specialist Provider Element (final year of the five-year, £80 million allocation provided for specialist HEPs in the March 2020 budget)
For Enhancing Research Culture fund calculations we have not used data from the HESA 2022 to 2023 Student record, as notified in our June 2024 circular letter Data and payments for 2024 to 2025 formula-based funding.
For 2024 to 2025, this funding will be underpinned by:
- 2022 to 2023 HESA Staff record data
- 2021 to 2022 HESA Student record data
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 2024 to 2025.
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:
- asks us to pay attention to support for commercialisation and business engagement, local growth and entrepreneurship
- identifies Higher Education Innovation Funding (HEIF) as an important programme to address the government’s growth mission
We are asked to use insights from forthcoming HEIF evaluation activities to consider how we can align HEIF more closely with the economic growth mission in the next period.
We are also asked to continue:
- joint working with Office for Students (OfS) on Department for Education priorities
- to pay attention to improving data and embedding best practices in commercialisation, which includes continuing to implement key actions from the Independent Review of Spinouts
Table D: total funding for knowledge exchange in academic year 2024 to 2025
| Knowledge exchange funding streams (academic year basis) | 2024 to 2025 total (£ million) |
|---|---|
| Higher Education Innovation Funding (HEIF) formula funding | 260 |
| HEIF business and commercialisation supplement | 20 |
| Research England Development (RED) fund | 20 |
| RED-Connecting Capability Fund (RED-CCF) | 28 |
| Total knowledge exchange funding | 328 |
Higher Education Innovation Funding (HEIF)
HEIF formula funding has been maintained at £260 million for academic year 2024 to 2025. This includes £48 million contributed by the Department for Education to support student and teaching elements of knowledge exchange through HEIF.
From the £260 million, £240 million is allocated through the main HEIF formula. The remaining £20 million is distributed as a supplement to HEPs whose main allocation is capped at the maximum. As in previous years, this is provided to enable HEPs to enhance their knowledge exchange strategies where there is evidence that the cap on funding is a constraint on their support of economic growth.
For 2024 to 2025, we have maintained the same funding method and weightings for the main HEIF formula funding as were used in 2023 to 2024.
A description of the HEIF funding methods can be found in the publication How we fund higher education providers. A more detailed explanation is provided in the technical guidance.
HEPs in receipt of HEIF must comply with the HEIF policies, priorities and accountability arrangements, including the July 2024 addendum regarding knowledge exchange data collection requirements and the September 2024 addendum regarding requirements on adoption of best practice.
The distribution of HEIF to individual HEPs is shown in Table 1 of the data workbook Research England grant allocations data 2024 to 2025.
HEIF business and commercialisation supplement
The HEIF business and commercialisation supplement was introduced in 2022. Allocated using HEPs’ business and commercialisation data, this fund supports only business and commercialisation activity that is additional to activity supported by the main HEIF allocations.
Allocations of HEIF business and commercialisation supplement to individual HEPs are shown in Table 3 of the data workbook Research England grant allocations data 2024 to 2025.
Capital funding
The capital funding allocated to Research England by government for the financial year 2024 to 2025 totals £315 million.
Table E: Total capital funding in financial year 2024 to 2025
| Capital funding streams (financial year basis) | 2024 to 2025 total (£ million) |
|---|---|
| Research Capital Investment Fund (RCIF) | 233 |
| National facilities and initiatives | 5 |
| UK Research Partnership Investment Fund (UKRPIF) | 77 |
| Total capital funding | 315 |
Research Capital Investment Fund (RCIF)
RCIF comprises two elements.
Higher education institution (HEI) Research Capital England
Higher education institution (HEI) Research Capital England is allocated in proportion to:
- QR funding for 2022 to 2023 and 2023 to 2024
- research income from other selected (non-research council) sources, reflecting finance data for the most recent two years
Higher Education Research Capital (HERC) England
Higher Education Research Capital (HERC) England will continue to be allocated in proportion to research income from research councils, reflecting finance data for the most recent three years.
Table F: RCIF funding in financial year 2024 to 2025
| RCIF funding (financial year basis) | 2024 to 2025 total (£ million) |
|---|---|
| Higher education institution (HEI) Research Capital England | 120 |
| Higher Education Research Capital (HERC) England | 113 |
| Total RCIF funding | 233 |
As in previous years, we are not providing RCIF allocations in 2024 to 2025 to HEPs where the total sum of the two RCIF elements would be less than £10,000.
Participation in REF 2021 was introduced as a criterion for eligibility for RCIF funding in 2023. The small number of HEPs that would be affected by this change received funding exceptionally to provide an appropriate adjustment period. The affected HEPs have each been contacted individually.
RCIF funding is provided on a financial year basis and must be used for the purpose intended. Research England is not permitted to make payments to HEPs in advance of need and so capital grants must be spent in full by 31 March 2025.
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.
Allocations of RCIF funding are shown in Table 2 of the data workbook Research England grant allocations data 2024 to 2025. These are provided to sustain and strengthen the facilities and infrastructure that underpin research and enhance the research environment at HEPs. RCIF funds aim to:
- contribute to the long-term financial sustainability of a HEP’s research and the supporting physical infrastructure
- contribute to replacement of premises or infrastructure, improved space utilisation, and increased sharing and utilisation of research equipment
- promote collaborative partnerships between HEPs, industry, charities, government and NHS Trusts
- promote world-leading research capability in all disciplines with the capacity to respond to developing national priorities
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.
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 £86 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.
The 2023 Research England Review of Higher Education Museums, Galleries and Collections has resulted in investment of £14 million per year to 40 higher education museums, galleries and collections across 21 HEPs, beginning this academic year. There are ten new recipients of the funding as an outcome of the review.
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 2024 to 2025.
Terms and conditions of funding
The terms and conditions of funding set out the formal relationship between UK Research and Innovation 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 for 2024 to 2025 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, effective from 1 August 2019.
Fluctuation in grant allocations for HEPs
Most HEPs will receive different amounts of grant in 2024 to 2025 from that received in 2023 to 2024. 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, including:
- research staff numbers
- OfS Annual Financial Return data
Data which affects a HEP’s share of knowledge exchange funding, including:
- Higher Education and 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
Annex A: grant allocations guide 2024 to 2025
See the data workbook, Research England grant allocations data 2024 to 2025 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 five tables.
Table 1: QR funding and HEIF grant allocations for the academic year 2024 to 2025 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: RCIF grant allocations for financial year 2024 to 2025 includes:
- HEI Research Capital England
- Higher Education Research Capital (HERC) England
Table 3: further grant allocations for the academic year 2024 to 2025 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 2024 to 2025
Table 5: non-recurrent allocations for the financial year 2024 to 2025 includes:
- International Science Partnerships Fund (ISPF) institutional support grant (ODA)
See Annex B for information on the documents we publish to support understanding of our formula funding allocations.
Annex B: formula funding publications for 2024 to 2025
In order to support understanding of our funding and grant allocation methods, we provide a number of documents.
The following items can be found on the Research England formula-based funding web pages for 2024 to 2025:
- Research England grant allocations data 2024 to 2025: 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 2024 to 2025
- Specific guidance to UKRI, from DSIT, regarding the operation of Research England for 2024 to 2025
- Template for the grant letter sent to HEPs
- Research England terms and conditions of funding for 2024 to 2025
- How we fund higher education providers: an explanation of the different types of allocated funding and how these are distributed
- 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
- Grant data tables for each individual HEP: data behind the calculations for QR and HEIF funding
- Technical guidance for QR and HEIF: detailed explanation of the HEP grant data tables, including data sources
- Income data used in HEIF allocations
- Worked example of calculation for quality-weighted volume
- Mapping of REF 2021 units of assessment to Research England research cost bands and HESA cost centres
As we are not using new HESA Student Record data for our funding calculations in 2024 to 2025, we will not be producing individualised student data this year.
Information remains available for the individualised student data that informed the QR RDP supervision fund allocations for 2023 to 2024.