*** Q1: What is NIHR Research Capability Funding?

RCF FAQs (revised March 2017) Q1: What is NIHR Research Capability Funding? Q2: Which organisations will receive NIHR RCF? Q3: How can an organisation qualify for and receive NIHR RCF? Q4: How much NIHR RCF will research active NHS organisations receive (2017/18 weightings)? Q5: Is there a minimum amount of NIHR RCF that can be allocated to an NHS organisation? Q6: How will RCF paid on the basis of recruitment to clinical trials be allocated? Q7: What NIHR Programmes attract RCF? Q8: How can NIHR RCF be used? Q9: What are the priorities for use of RCF? Q10: Can RCF be used to meet the costs of public involvement in research? Q11: Is there an expectation that RCF will be used to support the researchers whose projects attracted RCF? Q12: Can a recipient of RCF choose to pass some of its RCF to another provider of NHS services or to an HEI partner? Q13: How can RCF be used to meet costs associated with maternity/paternity or long-term sick leave? Q14: The guidance states that RCF can be used to contribute towards the sponsorship and governance costs associated with research included in the NIHR CRN portfolio, where these costs are not met in other ways. What Governance costs are eligible to be met from RCF? Q15: Is there a guideline on what would be an acceptable proportion of the RCF allocation to use to contribute towards the cost of hosting NIHR-supported research? Q16: Can RCF be used to support studentship awards, including MBAs and PhDs? Q17: Can RCF be used for the protection and management of intellectual property arising from NIHR funded or supported activities? Q18: Who are NIHR Faculty Members? Q19: If an NIHR Senior Investigator moves to another provider of NHS services will this result in an automatic transfer of RCF? Q20: Is there a maximum time for which RCF may be used to support an individual? Q21: The Briefing note states that NHS organisations receiving RCF must also comply with the requirements of the new Research Support Services, to continue to receive the funding. What is DH s expectation and/or definition is of being compliant with the Research Support Services Framework (RSSF)? Q22: Can organisations or individuals apply to DH for RCF? Q23: Can RCF be used to cover redundancy payments for the NIHR element of a post? Page 1 of 8

*** Q1: What is NIHR Research Capability Funding? A: Research Capability Funding (RCF) is allocated to research-active NHS organisations or NHS health care providers in receipt of NIHR income to enable them to maintain research capacity and capability. It does this by: enabling NHS organisations to meet some, or all of the research-related component of the salary of their researchers and research support staff working on clinical and applied health research, where that component is not already provided by another funding source; and contributing towards sponsorship and governance costs, and accommodation, financial management, and human resource management costs (including net costs incurred by a host organisation in meeting the salary of an individual supported by NIHR, while on maternity, paternity or long-term sick leave), associated with research staff of NHS organisations hosting research within the NIHR Clinical Research Network (NIHR-CRN) portfolio. Q2: Which organisations will receive NIHR RCF? A: NIHR RCF is allocated to research-active NHS organisations that receive other NIHR funding. RCF is allocated annually based on the NIHR income received in the previous calendar year, and senior investigators in post or appointed at the start of the new financial year. Any organisation that does not qualify for the minimum allocation of RCF on the basis of its NIHR income can still receive an allocation if it recruited at least 500 patients to non-commercial clinical studies conducted through NIHR-CRN during the previous CRN reporting period of 1 October 30 September. However, the RCF allocation will be based on either NIHR income or patient recruitment, not both. Q3: How can an organisation qualify for and receive NIHR RCF? A: NIHR RCF for an NHS organisation s own use is based on the income the NHS organisation received from the NIHR and Policy Research Programme (PRP) during the previous calendar year, plus the number of senior investigators associated with the organisation in post on 1 April of the year in which the RCF allocation is made. To qualify, an organisation must: be a statutory NHS Organisation or NHS health care provider in receipt of NIHR income; be associated with at least one senior investigator in the current year, or have received NIHR Funding other than NIHR RCF in the previous calendar year employ staff who do or support research; have recruited at least 500 patients to non-commercial clinical studies conducted through NIHR-CRN during the previous CRN reporting period of 1 October 30 September (please note that the RCF allocation will be based on either NIHR income or patient recruitment, but not both - see also Which organisations will receive NIHR RCF? ). Page 2 of 8

Q4: How much NIHR RCF will research active NHS organisations receive? A: The amount allocated to each organisation for its own use is in proportion to the total amount of NIHR income the NHS organisation receives during the previous calendar year, and the number of senior investigators associated with the organisation in post or the recruitment of at least 500 patients to non-commercial clinical studies conducted through NIHR-CRN during the previous CRN reporting period of 1 October 30 September (see also Which organisations will receive NIHR RCF? ). The amount given to individual organisations is announced each year prior to allocation and varies according to the income streams and circumstances. 2017/18, the income weightings for calculating RCF Basis for calculation of 17/18 rate RCF Infrastructure per funding 0.104 Centres (BRCs, BRUs, PSTRCs, CHAHRCs) per funding 0.150 Programmes per funding 0.327 Senior Investigators per investigator 75k Patient Recruitment per organisation 20k Please note that we do not adjust RCF allocations in-year if a Senior Investigator moves to another organisation. The weightings in the RCF allocation formula will vary each year in order to keep within the national budget. This has always been a feature of this funding stream and should not create major problems for recipient organisations because most uses of RCF should be for relatively short-term funding. Q5: Is there a minimum amount of NIHR RCF that can be allocated to an NHS organisation? A: Yes. This is a strategic fund, so we will not allocate very small amounts of NIHR RCF. The current threshold allocation below which RCF payments will not be triggered is a nominal RCF allocation of 20k. Q6: How will RCF be paid on the basis of recruitment to clinical trials be allocated? A: Any organisation that does not qualify for the minimum allocation of RCF on the basis of its NIHR income can still receive an allocation if it recruited at least 500 patients to non-commercial clinical studies conducted through NIHR-CRN during the previous CRN reporting period of 1 October 30 September. The allocation is based on data supplied to DH by the NIHR Clinical Research Network Coordinating Centre. Page 3 of 8

Q7: What NIHR programmes attract RCF? A: All NIHR programmes where the Funding Agreement is held by an NHS organisation are eligible to attract RCF (mainly, but not limited to, PGfAR and RfPB). However, if the funding agreement is held by an HEI then it will not attract RCF, even if an NHS organisation is working with the HEI. This means that NIHR funded research will either attract RCF or be eligible to attract HEFCE QR funding, but not both. Please note: HTA, HS&DR, i4i and EME funding can drive an NHS organisation s RCF allocation, but only where the funding agreement is held by the NHS organisation in question. The Department of Health s Policy Research Programme is also eligible to attract RCF if the funding agreement is held by an NHS organisation. However, as with HTA and HS&DR, PRP contracts are usually held by universities. Q8: How can NIHR RCF be used? A: Permitted uses of RCF is detailed in the briefing document. Q9: What are the priorities for use of RCF? A: The primary use of RCF is to help the NHS to retain research active staff, who are between grants, and support staff. The next call on RCF is to meet unfunded indirect costs of research, as described in the latest briefing note. The recipient organisation also has discretion to meet other costs associated with the preparation of bids for research funding for the NIHR of its funding partners. Q10: Can RCF be used to meet the costs of public involvement in research? A: RCF is not usually the most appropriate funding stream to meet the costs of public involvement in research; these costs must be met from research grant funding. RCF cannot be used as a substitute for grant funding; neither should it be used to pay for the public involvement activity itself. However, RCF can be used to pay for staff time spent on preparing a research application, including that part of the application directly related to PPI, where there is no other grant funding to cover this. At the discretion of the recipient organisation, this could include paying the costs of working with patients and/or carers as part of the process of preparing a grant application. Q11: Is there an expectation that RCF will be used to support the researchers whose projects attracted RCF? A: Organisations in receipt of RCF are expected to use the allocation in accordance with a standard funding agreement, and in line with a local research strategy. Although the RCF allocation is based on NIHR income, there is no requirement to link use of RCF with the qualifying activity. In respect of the 75,000 that is awarded to Senior Investigators, we expect that the SI will have a say in, and access to, its use, in line with the agreed uses of NIHR RCF. Page 4 of 8

Q12: Can a recipient of RCF choose to pass some of its RCF to another provider of NHS services or to an HEI partner? A: Under some circumstances, an organisation in receipt of RCF can choose to pass some of its RCF to another Trust or to an HEI partner where this is in line with a local research strategy. However, the original recipient organisation remains responsible for reporting to DH on the use of all the RCF it receives, including any passed to another organisation. It would also need to have a formal written agreement with the provider of NHS services or HEI concerned. For clarification: 1. RCF may be used to support staff employed in a partner organisation where this is line with the Trust's research strategy and there is a formal written agreement in place with the organisation concerned. 2. Organisations may only use their RCF to contribute towards other organisation's accommodation costs, finance management costs, HR management costs (amongst other costs) where these costs are incurred by an organisation providing NHS services. Q13: How can RCF be used to meet costs associated with maternity/paternity or long-term sick leave? A: Where a research grant is held by an NHS organisation (or the organisation is in receipt of NIHR centre or infrastructure funding) and a member of the research team goes on long-term sick leave or maternity leave then the NHS organisation can use its RCF to pay the additional net costs incurred (or the cost of back-filling key NIHR- funded posts left temporarily vacant during the award period, where the absence will seriously compromise success of NIHR-funded research). If the staff member concerned is employed by the HEI then the NHS organisation can choose to use some of its RCF to pay for back-filling the post. In which case the research grant would be used to cover the pay of the individual on maternity/paternity/sick leave, with RCF used to cover the costs of back-filling posts. However, it might also be reasonable for the NHS organisation to raise the issue of whether the HEI can contribute to these costs from their QR funding. In general, RCF should only be used to contribute to this sort of cost where there is no other source of funding is available. In addition, please note: 1. RCF should only be used to fund the share of costs that relate to the proportion of a person s WTE that NIHR meets through either a research grant or centre or infrastructure funding and it should only be used to contribute to this sort of cost where there is no other source of funding is available. 2. If an organisation funded by NIHR under a fixed term contract (such as a BRC or BRU) is unable to support a specific higher-degree student on maternity/paternity leave, and their salary on return to work, beyond the end of the overarching contract, then RCF can be used to meet the relevant costs incurred by the employing organisation. Page 5 of 8

Q14: The guidance states that RCF can be used to contribute towards the sponsorship and governance costs associated with research included in the NIHR CRN portfolio, where these costs are not met in other ways. What Governance costs are eligible to be met from RCF? A: NIHR already provides funding for a number of R&D systems, including NRES and the NIHR Coordinated System of gaining NHS permission. The key phrase in the guidance is that RCF can be used for costs that are not met in other ways. Provided there is no other source of funding available then RCF can be used to contribute to the costs of sponsorship fees such as MHRA fees and CTA annual renewal fees, for example. Q15: Is there a guideline on what would be an acceptable proportion of the RCF allocation to use to contribute towards the cost of hosting NIHR-supported research? A: We are not issuing guidance on this point because of the wide variation in the amount of RCF allocations. However, see the question on priorities for use of RCF. Q16: Can RCF be used to support studentship awards, including MBAs and PhDs? A: RCF is not intended to support MBAs or PhD studentships. We would therefore not expect RCF to be used to provide a bursary to a PhD student or to pay courses fees or to meet the costs of research associated with a PhD. Q17: Can RCF be used for the protection and management of intellectual property arising from NIHR funded or supported activities? A: Yes, RCF can be used for the protection and management of IP provided there is no other source of funding available. For example, development of IP may sometimes be covered by the grant award. Furthermore, exploitation of IP should lead to income that should be used for the development of IP before using RCF. Thus, RCF can be used to identify and evaluate IP in terms of its commercial potential in income generation and/or NHS cost savings. RCF can be used to protect IP and identify the correct pathway to help ensure patient benefit can be achieved by the appropriate mechanisms. Such primary work would establish the routes to market, whether the IP was patentable or simple copyright, a new product or service, but would also identify who was best placed to ensure patient benefit and the type of return to the organisation. Thereafter income from prior commercialisation (or other NHS or external sources) should be used to further develop and exploit the IP; the organisation should also consider whether the AHSN could offer a potential route for dissemination and adoption. Page 6 of 8

Q18: Who are NIHR Faculty Members? A: NIHR Faculty Members are individuals: who conduct or support patient or people based research whose salary is funded, in part or in whole, from the NIHR Projects, Programmes, Centres or Units funding and/or DH Policy Research Programme (PRP) funding or who are funded through approved NIHR training programmes and who are employed by an NHS organisation, an English University, or a charitable organisation based in England. Q19: If an NIHR Senior Investigator moves to another provider of NHS services will this result in an automatic transfer of RCF? A: No, we do not usually adjust RCF allocations in-year. Q20: Is there a maximum time for which RCF may be used to support an individual? A: The emphasis of RCF is on both flexibility and sustainability. It is therefore important that RCF is not used as if it were an alternative source of long term funding. However, we do expect RCF to be used strategically. So, while RCF will normally only be used for short term support, there may exceptionally be good reasons for supporting some posts for longer, provided this is consistent with one of the eligible uses of RCF funding. Such cases will need to be decided individually, and early engagement with the local R&D lead will be important. Q21: The Briefing note states that NHS organisations receiving standard Research Capability Funding must also comply with the requirements of the new Research Support Services, to continue to receive the funding. What is DH s expectation and/or definition is of being compliant with the Research Support Services Framework (RSSF)? A: Under the RSSF, Trusts will publish an R&D Operational Capability Statement that will demonstrate that the Trust meets appropriate governance standards to undertake research. Since RCF will continue to be driven by the organisation's research income, it will not be necessary for DH to check each Capability Statement before confirming the RCF allocation, but the information will be available should any concerns arise over an organisation's R&D performance. Q22: Can organisations or individuals apply to DH for RCF? A: There is no central application process for RCF. Standard RCF is an allocation made by DH to the NHS and it is for the recipient organisation to determine how to use its allocation (within the constraints of the permitted use of RCF and the local R&D strategy). Some organisations may operate an internal process for researchers to apply for RCF, but this is not necessarily the case. Page 7 of 8

Q23: Can RCF be used to cover redundancy payments for the NIHR element of a post? A: Redundancy costs are the liability of the employer. RCF cannot be used to fund redundancy payments. It is up to employers to manage employee contract in such a way that they minimise their exposure to redundancy costs, but if redundancy costs are incurred they cannot be funded from RCF even if the employer is using RCF to cover employee costs in the short term. Page 8 of 8