Committee publication · Correspondence · 21 April 2026

Correspondence from Minister for Science, Innovation, Research and Nuclear and UKRI CEO, re: Further follow-ups from letter sent on 26 March from Chair in relation to scientific research funding, 9 April 2026

From: Science, Innovation and Technology Committee

Summary

Lord Vallance and Professor Ian Chapman respond to the Science, Innovation and Technology Committee's 26 March questions on UKRI scientific research funding. They clarify that AI and quantum investments (£1.6bn and £1.0bn respectively) were not set against particle physics funding; acknowledge missing an international postdoc grant deadline as a serious mistake; confirm approximately 20 theoretical particle physics postdocs awarded in 2026 with commitment to restore previous funding levels; outline improved infrastructure governance; and detail hedging policy constraints.

Key findings

AI and quantum sector investments (£1.6bn and £1.0bn over spending review period) were not tensioned against STFC's PPAN portfolio, which is funded from curiosity-driven research stream; fundamental discovery research budgets will grow with the economy.
STFC missed the international deadline for particle physics theory postdoc grant letters in December 2025; peer review panel not reconvened until 14 January 2026 after budget agreement confirmed in December, a process error the government accepts as a mistake.
Approximately 20 theoretical particle physics postdocs awarded in 2026; government commits to maintaining postdoc numbers at FY2025/26 levels across PPAN and aims to increase over time despite historical funding pressures.
UKRI's hedging strategy limited to forward-buy contracts with Bank of England for up to 90% of expected non-sterling payments; designed to provide cost certainty, not protection against unfavourable currency movements.
PPAN prioritisation scenarios including financial modelling and impact assessments will be presented to STFC Council and Executive Board in June; UKRI Executive Committee, with Professor Chapman as Accounting Officer, makes final decision on STFC budget use.

Tone

Procedural

Topics

research-fundingparticle-physicspublic-financegovernance

Key actors

Lord Vallance, Professor Sir Ian Chapman, Dame Chi Onwurah, UKRI, STFC, Department for Science, Innovation and Technology, UKRI Infrastructure Advisory Committee, Bank of England

Notable line

“It is clear that this was a mistake and one that it is essential is not repeated.”

Key Quotes

“These vital and significant investments were not tensioned against STFC's PPAN portfolio, which is largely funded from the curiosity -driven research funding stream.”
— Lord Vallance and Professor Sir Ian Chapman · Addressing whether AI and quantum investments undermine particle physics funding

“It is clear that this was a mistake and one that it is essential is not repeated.”
— Lord Vallance and Professor Sir Ian Chapman · On missing the international deadline for particle physics postdoc grant letters

“As UKRI CEO, Prof Chapman takes responsibility for not realising that this deadline was upcoming and expediting action in good time.”
— Lord Vallance and Professor Sir Ian Chapman · Accepting accountability for operational failure to meet postdoc grant deadline

“We stated in our 19th March letter that "there will be no reduction in PPAN post- doc numbers", and that remains our position, noting that this will result in increasing financial commitment as the costs per FTE increase over time.”
— Lord Vallance and Professor Sir Ian Chapman · Commitment to postdoc funding levels despite budget pressures

“The only hedging arrangements permitted by UKRI's policy are 'forward - buy' contracts with the Bank of England.”
— Lord Vallance and Professor Sir Ian Chapman · Describing constraints on foreign exchange risk management

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Source · parliament.uk record ↗