The changes, which are effective from 1^st April, apply to the UKRI Funding Service and will attempt to improve cost recovery, streamline funding processes and ensure fairer access to resources.

UKRI will now fund all equipment purchases at 80% of their full economic cost, albeit with exceptions including fully funded equipment for specific infrastructure opportunities, international partner costs and instrument development awards

The threshold for capital equipment will increase from £10,000 to £25,000, with any items above this amount classified as capital expenditure, and therefore requiring justification in grant applications.

UKRI is also providing clearer guidance on institutional matched funding to improve transparency and fairness in research funding, with a default position that there is no expectation of matched funding.

These updates build on UKRI’s work to support more financially sustainable research, with an insights paper highlighting that the cost of research has often exceeded available funding, affecting research quality, project scope and long-term investments in infrastructure and workforce development.

The paper is supported by two independent reports commissioned by UKRI, including Understanding the FEC of Doctoral Training by Pye Tait Consulting, and Innovation and Research Caucus’s report Understanding low levels of FEC cost recovery on UKRI grants.

Professor Dame Jessica Corner, executive chair at Research England, said: “I am confident these changes will be welcomed by the UK research community as a step toward greater financial sustainability.

“By improving cost recovery and ensuring research organisations can plan with greater confidence, we are strengthening the long-term resilience of the UK’s research and innovation system.”