Change to Industrial Contributions from January 2023

From January 2023 Industrial Contributions to the ATI Programme will return to 2.5% replacing the 2% rate introduced in April 2020. This follows the latest regular review by the ATI Board to ensure Industrial Contributions cover half of the institute’s operating costs over its lifetime, with the other half being met by government. This will take effect from Batch 39 onwards and returns Industrial Contributions to original rates in place from the formation of the ATI.

The size of the contributions made by industry to the operating costs of the ATI, referred to as Industrial Contributions, is determined by calculating a percentage of the grant awarded to projects through the ATI Programme. (The ATI Framework Agreement sets out details of how the Industrial Contributions work) but an illustrated example is provided below.

Example: A research project with £1m total costs is awarded a £600k ATI grant. The amount the project will need to contribute to ATI operating costs is £600k multiplied by the current Industrial Contributions Percentage (ICP) rate for the relevant competition applied to. For a project awarded funding through the Strategic Programme in Batch 39, this would be £600k x 2.5% = £15k.

In September 2022, the ATI Board agreed the following Industrial Contributions:

  • ATI Strategic Programme (strategic batch competitions) – Industrial Contributions will revert to 2.5% for projects successful for funding award at Batch 39 and onwards. There will be no retrospective change to projects contracted at a lower rate.
  • Smaller Business collaborative competitions – projects awarded funding under the future competition (launch planned in 2023) will be exempt from Industrial Contributions until further notice.
  • National Aerospace Technology Exploitation Programme (NATEP) – future projects continue to be exempt from Industrial Contributions.

All other projects currently on contract from earlier competitions, or those that will be contracted through Batch 37 or Batch 38, are unaffected by these changes and will continue to pay Industrial Contributions at the rate they were originally contracted.

Further Information

If you require any further information in relation to this change, please contact: