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What is happening with UKRI funding and the STFC cuts?

03 Feb 2026

Daniel Rathbone

Deputy Executive Director

In recent days there have been a number of reports about cuts to UKRI budgets and grant funding pauses.

Here we summarise events so far, set out why we believe UKRI should explain how and why decisions have been made, and summarise relevant comments made by Prof Sir Ian Chapman at the House of Commons Science, Innovation and Technology select committee.

In November and December 2025, the Department for Science Innovation and Technology (DSIT) and UK Research and Innovation (UKRI) set out how £38.6 billion of public R&D funding for UKRI over the next four years will be distributed according to a new framework.

UKRI is reshaping around three funding ‘buckets’: curiosity‑driven research, strategic government and societal priorities, and supporting innovative companies. While the overall UKRI budget is set to rise towards £10bn a year by 2030, how that funding is distributed will shift considerably. This is the biggest change to how UKRI invests in R&D since it was set up in 2017.

UKRI and DSIT say that, due to the new model, direct comparisons with previous years or with historical research council allocations are not possible. Being unable to make comparisons means it is difficult to fully understand what the allocations mean for UK R&D in the years ahead, and how the scope and size of public investment in various areas of R&D is changing. As we said when the detailed allocations were published, this makes external scrutiny difficult and weakens confidence in the statement that curiosity‑led research is protected. We continue to make this point to UKRI – and push for additional information.

Since the allocations were published, further information has emerged piecemeal—via internal presentations, letters and reports of pauses to grant schemes—creating a perception of opacity and reactive communication. In the last few weeks, three major councils (MRC, BBSRC, EPSRC) have paused grant routes, and the Science and Technology Facilities Council (STFC) has announced significant cuts to funding.

On the 28th January, CaSE warned that STFC cuts could damage the foundations of UK research. We highlighted the contradiction between assurances that curiosity‑led research is protected and instructions for projects to model reductions of up to 60%, in a letter from the Executive Chair of STFC. We called on UKRI to explain how these cuts align with stated commitments and to clarify what research will be funded instead.

In an open letter on 1st February, UKRI Chief Executive Prof Sir Ian Chapman acknowledged the uncertainty and confirmed that hard decisions will result in negative outcomes for some. Sir Ian also re-stated that curiosity-led research is protected and that simple year‑on‑year comparisons are no longer possible. The publication of the letter is a positive step, however one seemingly born from external pressure rather than a considered communications strategy, and that still leaves some un-answered questions.

Significant cuts could damage the foundations of UK research

CaSE’s initial response to the STFC cuts

Read more

The scale and nature of STFC cuts

According to reporting from Research Professional News and later confirmed by Sir Ian Chapman in the open letter, the STFC must deliver a total of £162 million in cost reductions by 2029–30, forcing substantial savings across both external research grants, national scientific facilities and international collaborations. Sir Ian said in his letter that this is a separate issue to the change in funding model and is a consequence of significant increases in cost facing the STFC due to higher energy costs and unfavourable currency exchange rates.

Regardless of their connection to the UKRI restructure, these measures will hit particle physics, astronomy, and nuclear physics particularly hard. Project leaders have been asked to model scenarios of 20%, 40% and 60% reductions to their budgets and to indicate when projects become non‑viable.

The scale of these cuts could also damage national research facilities that underpin many disciplines across the R&D sector, and the UK’s international reputation as a collaborator if we pull back from international projects we have already committed to.

These cuts are being presented as the only option to manage rising costs within the STFC, with funding across the spending review period to 2030 broadly flat. However, rising costs could be met with increased funding, or a combination of both increased funding and cuts. So far, we have not had an explanation as to why UKRI has chosen to meet the increased costs from cuts alone. Increasing STFC budgets could lead to lower budgets elsewhere in UKRI, so there is clearly a strategic decision being made to prioritise that funding over STFC. In the interests of full transparency UKRI should explain how and why that decision has been made.

Moving to the ‘buckets’

In principle the move to the new ‘buckets’ system for funding research should be a positive thing. A better clear set of objectives for UKRI should ensure that the whole of society can benefit from the outcomes of research. However, good, clear communication as this happens is vital. Even if the overall level of funding is going up, change means some people will inevitably miss out. Pausing grant programmes in the manner we have seen, however, creates significant unnecessary uncertainty. Every effort must be made to explain UKRI’s changes, decisions and rationale to the sector.

Pausing funding streams will have consequences that will harm both research and researchers, particular those early in their career, like post-docs on short term contracts. The lack of notice or information about what comes next makes it very difficult for individuals to plan, both in terms of the research and the next steps for their careers. This is why timely, clear information at every stage of the process is critical.

Outstanding Questions

Following on from the open letter, Sir Ian appeared in front of the House of Commons Science, Innovation and Technology select committee on 3rd February. CaSE followed what Sir Ian said and have set out below how his answers to the committee measure up against the outstanding questions we had ahead of his appearence. We will continue to engage closely with UKRI to ensure that we are able to understand and communicate the changes taking place with our members and the wider sector.

It is also timely that we will all have opportunity to hear directly from and ask questions of Sir Ian on the 10th February when he delivers CaSE’s annual lecture as part of our conference ‘CaSE’s 40th Anniversary: Reimagining R&D’. The livestream of which can still be registered for.

CaSE's Question:

For the STFC, why are cuts being presented as the only option to manage rising costs, rather than seeking alternative funding or re‑prioritisation elsewhere?

Prof Sir Ian Chapman's relevant comments at the House of Commons Science, Innovation and Technology select committee:

Chapman stated that STFC’s budget is staying the same, but the cost basis is going up due to several reasons, including inflation and foreign exchange rates. He emphasised that UKRI are not making cuts, but rather cost reductions against forecast cost increases. Chapman says UKRI are making choices on how to rectify the situation.

What does this tell us, and what more do we want to know?

Whether a reduction of research spend at the STFC is framed as a cut or as ‘cost reductions’ is a matter of semantics. The outcome is the same, and we are still yet to hear why this course of action has been decided upon over any alternatives.

On the new funding structure:

CaSE's Question:

What mitigations are in place to protect careers and facilities during pauses and reprioritisation?

Prof Sir Ian Chapman's relevant comments at the House of Commons Science, Innovation and Technology select committee:

On the STFC issue, Chapman stated they are in the process of assessing the impact of this. They don’t have a complete plan for how they will deal with the pressure. He stated a need for UKRI to be more efficient and that they will shoulder £100m of the £162m STFC cuts, by looking to be more efficient with their facilities.

STFC will continue to be a partner on LHC and CERN, and to put grants out in the community. However, STFC will have to reprioritise new projects not yet committed.

What does this tell us, and what more do we want to know?

While promising to hear work is underway to address these issues, Sir Ian’s responses today highlight further the failure in communication we have seen in the last week. We cannot see why the above information could not have been included in previous public communications, not least the letter from Michelle Dougherty to STFC grant recipients, or the public letter from Sir Ian. We also would like more information on what is meant by UKRI shouldering £100m of spending reduction through facility efficiency.

CaSE's Question:

Will UKRI commit to providing transparent, comparable data to rebuild trust in the settlement? Alongside timely information about what is happening and why?

Prof Sir Ian Chapman's relevant comments at the House of Commons Science, Innovation and Technology select committee:

Chapman was pressed several times on the issue of comparability. He emphasised that it would be a lot of effort and expense because it would require backwards book keeping, and UKRI lacks the meta data. However, UKRI commits to greater transparency going forwards.

Chapman said the split between buckets is the same at a macroscopic level, with overall UKRI spend previously being more or less the same as the new system – 50% for curiosity driven research, 25% for strategic government and societal priorities, and 25% for supporting innovative companies. Sir Ian indicated UKRI can provide high level mapping of this split.

What does this tell us, and what more do we want to know?

This position is a small step in the right direction away from the previous position that historic comparisons were not possible. Even a high-level comparison would be helpful. The select committee have asked UKRI to provide detailed explanation as to why they feel it is too large a task to facilitate. We look forward to seeing this rationale.

CaSE's Question:

What counts as ‘curiosity‑led research’ (bucket 1) and why have those classification decisions been made? How large is the truly applicant‑led element compared to historic levels?

Prof Sir Ian Chapman's relevant comments at the House of Commons Science, Innovation and Technology select committee:

Chapman reiterated the ambition for curiosity driven research to represent 50% of the UKRI budget. He stated that currently it is not possible to show how the ‘curiosity driven research’ bucket translates to historic spending. UKRI have said they will come back with high level estimates to offer a more detailed explanation and comparison to understand the baseline.

What does this tell us, and what more do we want to know?

This question as yet remains unanswered. We hope that further information provided by UKRI to the committee will shed light on the classifications and decision making.

CaSE's Question:

How do these choices map to UKRI’s stated goal of doing fewer things better? What capabilities will the UK retain or exit and what is the rationale for these choices?

Prof Sir Ian Chapman's relevant comments at the House of Commons Science, Innovation and Technology select committee:

On choice and prioritisation, Chapman stated that UKRI will be focusing on all IS-8 sectors, but that within a sector, there is a need to prioritise what to focus on. The reality is that the UK is a medium sized economy and is not in a big trading bloc.

Chapman stated that the setting of priorities should be a joint endeavour between the Government, UKRI and the community (e.g. universities and businesses). He stated the desire to retain flexibility in the budget to respond to emerging opportunities as they arise.

What does this tell us, and what more do we want to know?

Although this provides some further indication as to who will be making decisions on priorities, it does not tell us by what rationale and when the decisions will be made. It is important that this process be transparent.