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Research Operations Office


In response to the Wakeham review in June 2010 [1] and following the December 2010 budget allocation and expectation that substantial savings be made, Research Councils UK published a report entitled ‘Efficiency 2011-2015: Ensuring Excellence with Impact’ setting out plans to drive efficiency in research funding.

The methods for RCUK to make savings on both existing and future research grants held by the University are as follows:

  • A percentage reduction (the 'Single Efficiency Factor') is applied to indirect costs (not Estates or other FEC rates). Different efficiency factors ranging from 0% to 6% are allocated according to increases/decreases in indirect cost rates over two years
  • For existing grants with profile payments remaining as of July 2011, indexation is being reduced on both direct costs (excluding equipment) and FEC rates. For new grants, indexation is currently fixed at 0%, rising to 0.81% in 13-14
  • Reduced funds are available for equipment costs and a requirement to share assets within and between institutions

The reductions are significant and their impact will be felt by the University and individual grant holders and their departments for the next few years for the Single Efficiency Factor and Indexation; equipment will be affected longer term.

[1] 'Financial Sustainability and Efficiency in Full Economic Costing of Research in UK Higher Education Institutions'


Guidance Document