Research England confirmed on Wednesday that three targeted university funds will end after six years and £390 million of investment, while core research funding rises modestly.
The Enhancing Research Culture Fund, Participatory Research Fund and Policy Support Fund will close from the 2027 to 2028 academic year, the funder said in its refreshed funding approach for English universities. They were set up as time-limited programmes to build capacity across the sector.
Research England described the change as a shift away from time-limited programmes towards activity meant to support longer-term collaboration and capability building across the sector.
Mainstream quality-related research (QR) funding and the Higher Education Innovation Funding (HEIF) will both continue to see a modest increase, so institutions can respond to their own priorities.
What the three funds were worth in 2026 to 2027
Budgets for the three closing funds in the current academic year, set out for 2026 to 2027, are £30 million for Enhancing Research Culture, £6 million for Participatory Research and £29 million for the Policy Support Fund. Each is unchanged from 2025 to 2026.
Over the same period total QR funding rises to £2,024 million from £1,987 million, an increase of 1.88 per cent in each element. HEIF rises to £284 million from £280 million.
UKRI’s strategy commits to sustaining core QR funding for English universities in real terms, with at least £2.2 billion a year over the Spending Review period.
Capital grants capped, £9 million for transition
The Research Capital Investment Fund will have a higher minimum funding threshold and a cap on the most any single institution can receive. Research England said changes to UKRI’s prioritisation of infrastructure investment allow money to be spread more broadly on a competitive basis.
The fund’s budget for the 2026 to 2027 financial year is £174 million, the same as the year before. It must be used to sustain existing research facilities rather than for new buildings or major new infrastructure.
To ease the transition, up to £9 million over three years from 2027 will go to a new research culture collaboration network.
It will include four regional coordinators, a dedicated coordinator for small and specialist institutions and a central hub, with support for senior leaders and governing bodies.
A further suite of funding for collective action at regional and national levels is due to launch in early 2027.
Professor Dame Jessica Corner, Executive Chair of Research England, said the decisions are intended to ensure funding continues to support the sector effectively in a challenging environment. She added that change of this kind is “not always easy”, and that some institutions will face greater challenges in adapting than others.
A specialist provider funding review will give independent advice on how specialist institutions should be recognised in the funding framework. Targeted transition support with enhanced monitoring will also be put in place.
The changes come as universities report strain. A survey by Professor Stephen Roper and Professor Tim Vorley for the Innovation and Research Caucus interviewed finance chiefs at 74 of the 133 diverse higher education institutions in England.
It found that 85.1 per cent reported an operating deficit, broke even or had a reduced operating surplus in the year of the survey. Seventy-two of the 74 respondents saw the position as a systematic and longer-term issue rather than a short-term challenge.
Some 62.2 per cent rated the support they had received from governmental and regional stakeholders as “not at all effective” or “not effective”.
HEIF consultation open until 15 January 2027
Research England has also launched a separate consultation on proposed changes to the HEIF formula, following its recent review. The consultation paper sets out the areas of proposed change and the benefits and trade-offs of different approaches.
Responses are invited by 15 January 2027.