Match funding explained: how grant intervention rates work in the UK

What match funding means

Most innovation grants do not cover the whole cost of a project. The funder pays a percentage, called the intervention rate, and the company funds the rest. That remaining share is the match funding.

Assessors check that the match is credible. An excellent project with no believable way to fund its share will struggle to be funded.

Typical Innovate UK rates

For industrial research, Innovate UK has typically funded up to 70% of eligible costs for micro and small businesses, 60% for medium sized businesses and 50% for large businesses. For experimental development, closer to market, typical rates are up to 45%, 35% and 25% respectively.

Each competition sets its own rules, and some use different rates, so always check the brief. Research organisations in a consortium are funded on their own basis.

Where the matched share can come from

Common sources are retained profits, equity investment, director loans and commercial debt. Staff time already on the payroll counts as a project cost, which means part of the match is often the salaries you would pay anyway.

R&D tax relief can help recover some of the matched costs, subject to the rules on subsidised expenditure. Our guide to using grants and R&D tax credits together explains how the two interact.

Plan for cash flow, not just the total

Grants are usually paid in arrears against quarterly claims. You spend first and are reimbursed later, so the company needs enough working capital to carry both its share and the funder's share until each claim is paid.

Where to go next

Browse open programmes in our live grant directory, or book a free eligibility call and we will help you model the intervention rate and cash flow before you commit to a bid.