Research England will end three targeted university funds for English universities from the 2027 to 2028 academic year, after six years of investment totalling £390 million.

The Enhancing Research Culture Fund, the Participatory Research Fund and the Policy Support Fund will all close, the funder confirmed in a refreshed funding approach published this week. The three schemes were set up as time-limited programmes to build capacity across the sector.

Research England said the change marks a shift away from short-term, ring-fenced programmes towards activity intended to support longer-term collaboration and capability building across universities in England.

What the three funds were worth

In the current academic year, the three closing funds are worth £30 million for enhancing research culture, £6 million for participatory research and £29 million for policy support. Each figure is unchanged from 2025 to 2026.

Core funding, by contrast, will rise modestly. Mainstream quality-related research funding, known as QR funding, increases to £2,024 million from £1,987 million, a rise of 1.88 per cent. The Higher Education Innovation Fund, which supports knowledge exchange between universities and businesses, rises to £284 million from £280 million.

UK Research and Innovation, the parent body of Research England, has committed to sustaining core QR funding for English universities in real terms, at at least £2.2 billion a year over the Spending Review period.

Capital grants capped and transition support

The Research Capital Investment Fund will also change. It will have a higher minimum funding threshold and a cap on the most any single institution can receive, so that money can be spread more broadly on a competitive basis. Its budget for the 2026 to 2027 financial year is £174 million, the same as the year before, and 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 to support collective action at regional and national levels is due to launch in early 2027.

Sector under financial strain

The changes come as universities report serious financial pressure. A survey of finance chiefs at 74 of the 133 higher education institutions in England found that 85.1 per cent had reported an operating deficit, broken even or recorded a reduced operating surplus in the year surveyed. Seventy-two of the 74 respondents saw the position as a systematic and longer-term issue rather than a short-term problem.

Professor Dame Jessica Corner, Executive Chair of Research England, said the decisions were intended to ensure funding continues to support the sector effectively in a challenging environment. She added: “We know that change of this kind is not always easy, and that some institutions will face greater challenges in adapting to these funding changes than others.”

A specialist provider funding review will give independent advice on how specialist institutions should be recognised in the funding framework, and targeted transition support with enhanced monitoring will be put in place.

Research England has also launched a separate consultation on proposed changes to the Higher Education Innovation Fund formula, following a recent review. Responses are invited by 15 January 2027.