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Q&A: Changes to funding rates for ATI Programme

A Q&A to explain the changes to the ATI Programme that will be introduced on 1st October 2020.

By ATI Comms

28 September 2020 09:00:AM
Read time: 2 mins

From 1st October 2020 we will suspend the 50:50 matched funding policy for new Industrial Research applications to the ATI Programme. This Q&A for current and future applicants provides more detail on the changes.

What is the aim of suspending the 50:50 matched funding policy? Why are you doing it now?

We recognise the COVID-19 pandemic has caused significant disruption to the aerospace sector. Through the ATI Programme we want to ensure that R&D activity continues, which is the key to future competitiveness and a more sustainable and low-carbon future. Suspending the 50:50 matched funding policy for successful Industrial Research applications will enable partners to claim up to the standard funding rates under State Aid Regulations. For many businesses this will be an increase in the individual grant rate compared to what is available under the 50:50 matched funding policy. We hope this will enable companies of all sizes to continue to invest in innovation.

What are the new rates that apply to the ATI Programme?

Individual partners that are conducting commercial or economic activities (which may include research organisations) as part of the project can claim grant funding up to:

• 70% if you are a small or micro organisation
• 60% if you are a medium-sized organisation
• 50% if you are a large organisation

The total grant funding limit for any individual organisation is 20 million euros. The exchange rate to sterling will be taken from the HMRC exchange rates at the time we issue your contract.

The research organisations undertaking non-economic activities in your consortium can share up to 30% of the total eligible project costs. If your consortium contains more than one research organisation, this maximum will be shared between them. They can each claim 100% of their total eligible costs.

More details can be found on the October 2020 EOI here

Can large businesses claim the higher rates for industrial research -  80% for small, 75% for medium and 65% for large?

No, the EOI sets out the rates that can be claimed for industrial research. We want to test the impact of this funding change first. We also think this approach will be more affordable within the ATI Programme budget and provide better value for money.  

Why are the changes only available for a year?

We want to test what impact the change will have so we can make sure the ATI Programme delivers the best value for money, while supporting the aerospace sector as we move towards a recovery phase. We will undertake a review of the changes in summer 2021 and potentially extend the suspension period for an additional year. Any further changes will be communicated in good time. Currently the last opportunity to submit a proposal with the increased rates will be the August 2021 EOI.

How can I take advantage of the increased rates?

To take advantage of the increased rates you will need to submit an expression of interest between October 2020 and August 2021. This may mean you will have to re-submit an EOI that you have already made, so that it reflects changes in the amount of grant you wish to claim. The change of rates does not apply to projects that have already started or been approved.

Does the funding change for Capital Infrastructure projects?

The funding for Capital Infrastructure projects is not altered by this change. All projects remain funded in accordance with the State Aid regulations.

Why does it only apply to new applications?

We want to ensure that all companies have equal opportunity to take advantage of the enhanced rates, which is why we will only apply them to new Industrial Research proposals submitted within the defined period. All applications are assessed against the published competition criteria at the time of their submission, and it would not be fair or affordable to retrospectively apply the enhanced rates to projects which have already been assessed or contracted.

Are there any other changes to the ATI Programme at this time?

No. The focus of the ATI Programme remains on industrial research that aligns with the ATI's technology strategy Accelerating Ambition. The assessment process and advertised dates for the competition remain unchanged at this time. The first opportunity to apply for the increased rates will be the October 2020 EOI.  

Are you increasing the funding of the ATI Programme? If not, won’t this change mean that you fund fewer projects overall?

The ATI Programme budget will remain the same. We remain committed to funding the best projects, selected through a comprehensive review process.

My project has already been contracted. Will I be able to apply these increased rates to it?

No. The increased rates cannot be claimed retrospectively and will only apply to new industrial research proposals submitted within the defined period.

My Expression of Interest (EOI) was previously rejected because it did not meet the 50:50 matched funding requirement. Will it now be reconsidered?

All applications are assessed against the published competition criteria at the time of their submission. If your EOI was previously rejected because it did not meet the 50:50 matched funding requirements it will not be automatically reconsidered. If you are still interested in applying you will need to submit a new EOI, which will be assessed as a new application. This includes all EOIs submitted up to and including the September 2020 competition.

What will happen if I withdraw my current batch (batch 34) application and re-apply again?

You will need to submit a new EOI. Your application will be assessed as a new application. There is no guarantee your new application will succeed.

What if I terminate my current live project and re-apply?

You may withdraw from your current project, subject to the termination requirements of your grant terms and conditions. You will be required to submit a new Expression of Interest application and if successful a new Full Stage application. You are not guaranteed to receive funding for your resubmitted proposal. For further information and support, please contact your Monitoring Officer, or Innovate UK Customer Support Services (CSS) via email: support@innovateuk.ukri.org

Will this affect the Industrial Contribution mechanism?

The level of industrial contribution is unaffected by these changes. The contribution rate is regularly reviewed by the ATI Board and was last changed in April 2020. Further details can be found on the ATI website here.

 

NATEP

When is the next NATEP funding round?

The Autumn 2020 call will open on the 5th October. More information can be found on the NATEP website.

My NATEP application was previously rejected because it did not meet the funding requirements. Will it now be reconsidered?

All applications are assessed against the published eligibility criteria at the time of their submission. If your NATEP application was previously rejected because it did not meet the competition requirements it will not be automatically reconsidered. If you are still interested in applying you will need to submit a new application to either the Autumn 2020 or Spring 2021 call. For further information and support, please contact the NATEP office, info@natep.org.uk

 

ATI Programme: R&D Funding for Smaller Business 2020 call

Where can I find out more about the ATI Programme: R&D funding for smaller business 2020 call?

The call will open on 9th November 2020. Further details of the competition will be released shortly.