SUSTAINABLE RESEARCH FUNDING AND FULL ECONOMIC COSTS
28 October 2005
This autumn sees considerable changes to the way UK universities calculate the cost of research. The changes are intended to bring increased sustainability to the sector. From September 2005, researchers have begun to estimate the full economic costs (fEC) of individual projects, and to identify costs as directly incurred, directly allocated or indirect.
Directly incurred costs are those specifically needed to carry out the project, such as technical staff, equipment, travel and other research consumables. Directly allocated costs are the estimated costs of carrying out the project and costs that are shared across a number of projects, including project investigator time, departmental and laboratory running costs. Indirect costs, meanwhile, are those associated with the general upkeep of the university’s fabric and infrastructure, for example HR and finance services and library costs.
In recognition of these developments, the Wellcome Trust has refined its position on allowable costs for all grant holders in the UK and elsewhere. Researchers can now apply for the full directly incurred costs of a research project and other costs where it helps us to further our charitable mission. The Trust will not fund directly allocated or indirect costs unless specifically agreed.
The Wellcome Trust is a significant funder of research in UK universities. In recognition of the important role played by charities, the Government has provided increased funding in England, through the Charity Support Fund, to contribute to the fEC of charity-funded research in universities. The Scottish Funding Council has also allocated a charity stream of funding to support charitable-funded research in Scottish universities.
The Trust will monitor closely the impact of fEC on the research sector. From 1 October 2005, grant applicants from the UK are required to include details of the fEC of their research project when applying for funding.
