Notice

Regulators' Pioneer Fund: competition brief for funding round 3

Updated 30 November 2022

Competition overview

UK regulators and local authorities can apply to the £12 million Regulators’ Pioneer Fund (RPF 3) with initiatives that help businesses bring innovative products and services to market. This is a new round of the RPF, building on the success of both the first and second round. The first round invested up to £10 million in 14 regulator-led projects during 2018-20 to stimulate innovation in their sectors. The second round invested up to £3.7 million in 21 regulator-led and local authority–led projects in 2021.

The competition opens on 21 July 2022 at 12pm and closes on 29 September 2022 at 12pm.

Description of project requirements

The Department for Business, Energy and Industrial Strategy (BEIS) will invest up to £12 million for regulator-led and local authority-led projects of different project durations. Projects should run for 8 months or 12 – 18 months. Projects’ start and end dates will be staggered based on project duration.

The competition’s aim is to help keep the UK at the forefront of regulatory thinking and experimentation. The fund will sponsor projects led by regulators or local authorities which aim to create a UK regulatory environment that encourages business innovation and investment

Ensuring the UK is well-placed to extract the best value from innovation through regulation is a key commitment within the Innovation Strategy, which sets out the government’s vision to make the UK a global hub for innovation by 2035.

Your project must be ambitious, collaborative, innovative and reflect a research, learning and experimentation approach to regulation.

Project size

• For 8-month projects, your project must start by 1 January 2023 and end by 31 August 2023
• For 12-18 month projects, your project must start by 1 September 2023 and end by 28 February 2025.

The total funding grant for individual projects can be up to £1 million.

Eligibility

Eligibility criteria

To be eligible for funding you must be a body which meets the following three criteria:

• exercises a ‘regulatory function’, as defined in section 32(2)-(4) of the Legislative and Regulatory Reform Act 2006;
• performs that regulatory function in Scotland, Wales, Northern Ireland, England or across the UK; and
• is subject to and follows the guidance in HM Treasury’s Managing Public Money handbook, or, if not subject to that guidance, is able to demonstrate compliance with Managing Public Money principles with respect to any funding received from the RPF.

Only the regulator or local authority leading and sponsoring a project may submit an application and claim funding. They are the lead applicant.

Subject to subsidy control requirements (see below), the lead applicant may involve domestic and/or international partners (such as businesses, industry bodies, civil society groups, other regulators or academic institutions) in their proposed project where such participation is relevant to the purpose of their project and would be expected to improve or enhance the outcomes sought. However, the lead applicant will remain fully responsible themselves for the delivery of their project. BEIS will not organise or mediate working arrangements or agreements between bodies participating in a project.

Regulators and local authorities must meet public sector procurement rules^{[footnote 1]} in relation to any subcontractors they use in their RPF projects, or if not subject to those requirements, must be able to demonstrate compliance with public sector procurement principles with respect to any funding received from the RPF.

The lead applicant will have overall accountability for the use of all project funding (including for sub-contracted goods and services) in line with Managing Public Money principles.

Multiple applications

Regulators and local authorities are limited to being the lead applicant on two applications per project duration (four projects in total), but there is no limit to the number of applications in which a regulator or local authority can be a partner.

Resubmissions

If your proposal was successful in the first or second round of the RPF, you may not submit the same proposal in this competition. Any proposal you submit this time should be materially different from any proposal that received funding from the first two rounds of the RPF. For example, a proposal which took the results of a previously funded RPF project and used them to explore a new area would be considered materially different. A proposal will not be regarded more favourably simply because it builds on a previous RPF project and will be reviewed on a standalone basis applying the eligibility criteria.

If you have any queries about your organisation’s eligibility or your proposal, please email [email protected].

Funding

Funding type

Grant.

Funding details

We have allocated up to £12 million to fund projects in this competition.

Individual projects can apply for up to £1 million in grant funding

• Funding will be available for 8-month projects from 1 January 2023 till 31 August 2023 by which date projects must end
• Funding will be available for 12 - 18-month projects from 1 September 2023 to 28 February 2025, by which date projects must end

If your project is selected for funding, you may apply for funding before the start date of your project to support recruitment activities, for example, procuring sub-contractors. Applications for early funding will be assessed on a case by case basis, considering the circumstances of the project in question and whether the provision of early funding is necessary.  Delivery of your project should not begin until the project start date.

RPF funding will be allocated in fiscal years and must be spent in its allocated fiscal year. Future year funding will be allocated on a provisional basis and subject to review points. The transfer of funding between different fiscal years will not be possible.

The project funding limit includes funds that would be paid or passed on to your collaborators or partners by you on a sub-contract basis. Funding can only be used for non-commercial activities (see the subsidy control section below for further detail). You can usually recover the VAT paid on goods and services purchased for use in your business by submitting a VAT return. VAT that can be recovered is not an eligible cost^{[footnote 2]}.

You should commit your own resources to the project wherever possible and describe this in your application. This could include matched funding – funding provided by your organisation - to finance some of the activities or spend needed for your project as well as staffing resource and equipment.

You must outline plans to ensure that your project has lasting benefits and/or impacts beyond the lifetime of the RPF-funded activity. 

Subsidy control

Applicants will need to consider possible subsidy implications. Any UK organisation claiming RPF funding must be eligible to receive a subsidy at the time we confirm you will be awarded funding and must provide us with confirmation of eligibility. If you are unsure, please take legal advice. It is your responsibility to make sure that your organisation is eligible to receive subsidies.

Some activities carried out by or on behalf of the regulator or local authority in relation to its statutory obligations or functions as a regulator/local authority may be considered an economic activity, and therefore may fall within subsidy control requirements. Any aid granted for non-economic activities should not be used to cross-subsidise commercial activities.

BEIS Guidance is available for public authorities explaining the subsidies chapter of the Trade and Cooperation Agreement with the EU, World Trade Organisation rules on subsidies, and other international commitments^{[footnote 3]}.

Projects we will not fund

We will not fund projects that:

• are designed to enhance a regulator’s or local authority’s own performance without demonstrating significant positive benefits to businesses or innovators;
• would be reliant on ongoing government funding commitments beyond the duration of the project to deliver economic benefits;
• do not satisfy the essential requirements set out in this document;
• do not have (i) senior sponsorship at the applicant’s organisation and (ii) agreement that the findings, learnings and/or conclusions from the project will be shared with BEIS to facilitate the evaluation of the RPF policy measure as required by HM Treasury.

Your proposal

We want to help keep the UK at the forefront of regulatory thinking and experimentation. The RPF will sponsor projects led by regulators or local authorities which aim to create a UK regulatory environment that encourages business innovation and investment. We are looking for project proposals that:

Are ambitious

• projects which enable major improvements in a particular sector, for example, changes in approach by a single regulator to enable innovative new products and services to come to market, such as through the use of live-testing environments and/or the development of dedicated support measures for innovators;
• demonstrate value for money; and
• show potential for lasting benefits beyond the duration of the project with plans to scale up and spread best practice.

And/or collaborative

• bring multiple regulators and/or local authorities together to explore ‘cross-cutting’ issues of mutual interest and/or provide a more joined-up, efficient and effective service to business. For example, multi-regulator projects that can support industries, or emerging/growing business activities which cross regulatory boundaries, such as the development of forums or a multi-agency advice service; and
• projects with partnerships that include businesses, industry bodies, civil society groups, regulators and academia – as well as regulators and local authorities in other jurisdictions and/or international standard-setting organisations.

And address one or more of the UK Government’s priorities

We are looking for proposals which address the regulatory challenges associated with market innovation, emerging technology or new business models – projects which embody “innovation friendly regulation” thereby encouraging investor conditions within the UK.

While not limited to the following, we particularly encourage proposals relating to one or more of the following themes:

• The transition to a net zero economy. For example, supporting emission reductions to meet UK climate targets and encouraging investor certainty to give net zero technologies and solutions access to markets
• Place-based innovation impacts. For example, building on existing and emerging innovation strengths across the country to contribute to the government’s levelling up priority, including areas selected to pilot Innovation Accelerators and as Freeports.
• Reducing cost-of-living and making an impact and difference to the everyday lives of people and businesses. For example, enabling innovation benefits to be either realised by consumers or businesses quicker and reducing household or business cost burdens.

Linked to these themes, and beyond, we are interested in projects which advance on sector or thematic proposals set out in the independent report from the Taskforce on Innovation, Growth and Regulatory Reform. These proposals focus on harnessing the opportunities from Brexit and reducing regulatory burdens on business, particularly in relation to starting and scaling up in the UK.

Your project must be innovative and reflect a research, learning and experimentation approach to regulation

Be novel

• the project must be aimed at finding, acquiring and disseminating new knowledge towards a specific aim or objective.

Be creative

• the project must be based on a new idea or concept with the object of improving on existing knowledge.

Be systematic

• the project should be systematically performed and conducted, with the process and outcomes documented.
• a report summarising the project and the lessons learned must be published with key insights communicated to relevant stakeholders.

Be able to be reproduced

• your project should lead to results that have the potential to be reproduced.

You must:

• adopt a systematic approach to delivery with clear plans for the monitoring and evaluation of progress and results, with adequate data capture and documentation of the process and outcomes. You should strongly consider identifying and using Key Performance Indicators (KPIs) to evaluate your work;
• provide BEIS (and those acting for or on behalf of the Secretary of State for BEIS as appropriate) with full access to data on the impact of your RPF-funded work to enable the capture of learning and best practice;
• have approval from BEIS to publicise, carry out promotional activities or disseminate information in relation to your RPF-funded work;
• publish a report summarising your project and the lessons learned with key insights communicated to relevant stakeholders; and
• have (i) senior sponsorship at the applicant’s organisation and (ii) agreement that the findings and learnings/conclusions from the project will be shared with BEIS to facilitate the evaluation of the RPF policy measure.

Project types 

The types of proposals we would encourage are those for:

• projects that harness new thinking, new methods and/or new technological approaches in order to improve regulatory delivery and performance, benefitting innovators and businesses (all project lengths);
• short research and development projects (8-month projects) that generate new learning by exploring:
  • solutions for a regulatory issue faced by innovators or businesses; or
  • proactive measures to better support innovators or businesses;
• a short trial or pilot study (8-month projects) of a new initiative to change a regulatory approach that can enhance support for innovators or businesses.
• two-part projects (12-18 months) that start with a short R&D project, trial or pilot study, followed by systematic review and implementation of a regulatory change that supports innovators or businesses.

How to apply

The competition opens on 21 July 2022 and will close on 29 September 2022. Please read the complete the application form and send the application form to the [email protected] by the closing date.

The application is split into 3 sections:

• application details;
• application questions; and
• project financial information.

Application details

The lead applicant must complete this section. Give your organisation’s name, the regulatory functions you undertake that make you eligible for funding, the project’s title, start date and duration, and confirmation that you are eligible to receive subsidies for your project.

Project summary

Describe your project briefly and be clear about what makes it an innovative and an innovation-supporting venture. Set out the challenge you wish to tackle and what the intended gains and learnings from your project will be and for whom. Explain how your proposed project reflects the purpose of the RPF programme. Your summary should be accessible and clear to a person who is not a specialist in your sector or field. List any organisations you have identified as partners or subcontractors. Your answer may be up to 400 words long.

If your proposal does not reflect the eligibility criteria of the RPF programme, it will be rejected and not be sent for assessment. We will provide feedback.

Public description

Describe your project in detail, and in a way that you would be prepared to see published. Do not include information that is commercially sensitive or confidential to your organisation. If your proposal is awarded funding, we will publish this description. This could happen before the start of your project. Your answer may be up to 250 words long.

Application questions

Your answers to these questions will be scored by assessors. You will receive feedback on your application.

Your answer to each question may be up to 300 words long. Do not include any URLs in your answers. Please provide clear, jargon-free, well-structured and well-reasoned answers.

Question 1: Rationale or demand (20 marks)

What is the problem or challenge for business that your proposal addresses? What evidence is there of demand for the change in regulatory approach?

Describe or explain:

• the main motivation for the project, including the problem or challenge faced by businesses, the economic context, technological challenge and/or market opportunity
• the evidence, whether from the UK or overseas, that there is a demand for a change in regulatory approach
• any work you have already done to understand the issue, respond to this need, explaining whether your project will develop an existing capability or build a new one

Question 2: Alignment (20 marks) 

How is the proposal aligned to your organisation’s priorities and/or the priorities of the UK Government?

Describe or explain:

• the wider economic, social, environmental, cultural or political challenges which are influential in creating the opportunity, such as incoming regulations
• which of the UK Government priorities listed in page 8 of this document this proposal relates to (where relevant) or which of your organisation’s priorities
• how the proposal will help businesses and innovators to bring innovative products and services to market
• the potential for the project to contribute to addressing the UK Government’s priorities listed in page 8 of this document.

Question 3: Team and resources (20 marks)

What are the resources, equipment and facilities needed for your project and how will you provide or access them?

Describe or explain:

• the details of any vital external partners, including sub-contractors, who you will need to work with to successfully carry out the project

• (if your project is collaborative) the current relationships between project partners, senior buy-in for your proposal among project partners and how the working relationship for this project will be run/managed
• any roles you will need to recruit for or resources you will need to acquire to deliver the project successfully
• who in your organisation will be the Senior Responsible Owner (SRO) for this project – their name and designation

Question 4: Governance and delivery (20 marks)

How will you manage the project effectively, ensuring timely progress, transparent reporting (including financial) and robust governance? For this question you may also submit a project plan, no more than one side of A4, alongside your application form.

Describe or explain:

• how you will respond to the need, challenge or opportunity identified.
• the main work packages of the project
• the nature of the outputs you expect from the project
• your project plan in enough detail to identify any links or dependencies between work packages or milestones
• your approach to project management, identifying any tools and mechanisms you will use to get a successful and innovative project outcome
• describe how you will monitor and evaluate your project including any key performance indicators you plan to implement
• the main risks and uncertainties of the project, including the technical, commercial, managerial, legal, privacy/data protection and environmental risks
  • how you will mitigate these risks
• how your organisation’s internal governance will support your project.

Question 5: Added value (10 marks)

How will an injection of public funding by the RPF add value for the regulator or local authority?

Describe or explain:

• how your proposal differs from your existing regulatory activities
• the potential for your project to create positive cultural, systemic or institutional change in your organisation
• if this project could go ahead in any form without RPF funding, and, if so, the difference the public funding would make
• why you are not able to wholly fund the project from your own organisation’s resources or other sources of funding, and what would happen if the application is unsuccessful
• what would constitute success for your project, including what metrics and indicators you would use to measure the project’s impact
• the potential to scale up and spread best practice from your project to other regulators, including, where appropriate, internationally, beyond the duration of the project.

Question 6: Value for money (10 marks)

How does your proposal offer society and the economy value for money (using public resources in a way that creates and maximises public value)^{[footnote 4]}?

Describe or explain:

• how this project represents value for money
• what costs, if any, that you anticipate your project’s outcomes will remove from business
• any sub-contractor costs and why they are critical to the project
• how the project will deliver the greatest possible benefit for the RPF’s money

Project financial information

Please provide a monthly breakdown of your anticipated project costs for the length of the project. You should set out clearly administrative costs, costs associated with training, patent filing, subcontracting, labour and/or materials as applicable. Each organisation/partner/subcontractor in your project should complete their own project costs. Please include information on the matched funding your organisation will provide for your project. Contingency costings to cover the monetary impacts of project risks, uncertainties, unforeseen costs or situations should not be included in your project costs. Please set out your anticipated project costs using the Table template below. You may submit this separately, alongside your application form.

You can usually recover the VAT paid on goods and services purchased for use in your business by submitting a VAT return. VAT that can be recovered is not an eligible cost. If you are unable to recover VAT, please provide evidence and ensure your project costs include VAT, clearly indicating the amount and ensuring your anticipated project costs are within the limit of the grant based on the duration of your project.

Table template for anticipated project costs

Name	Cost
Total anticipated cost of project
Does your project include VAT: (please note that if you do intend to recover VAT you need to state this here. If it is not included and your project is selected we will not be able to provide additional funding to cover this)
If VAT is included, please provide evidence that you are unable to recover this

Type of costs	Breakdown of project costs in first month your project starts (January/September (as applicable))	Second month	Third month	FY1 total	FY2 total	Total project spend
Staff costs
Consultancy costs
Matched funding amount
Total anticipated cost of project

Process after application

Only applications that meet the eligibility criteria will be sent for assessment. You will be notified if your application is out of scope with feedback.

Following an assessment of proposals with respect to the criteria set out, an awarding panel will make the final decision on funding. We aim to notify applicants about the awarding panel’s decision by November 2022.

Successful projects will be required to work with BEIS’s independent evaluation partner to participate in the evaluation of the programme. This could include being contacted at intervals throughout the project, providing project data and participating in interviews and/or surveys. Further information on the evaluation of the programme will be provided if your application for funding is successful.

You will be expected to report on your progress and financial spend to BEIS regularly.

If you require further information, please email [email protected].

1. https://www.gov.uk/guidance/public-sector-procurement-policy ↩

2. https://www.gov.uk/reclaim-vat ↩

3. https://www.gov.uk/government/publications/complying-with-the-uks-international-obligations-on-subsidy-control-guidance-for-public-authorities ↩

4. https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/918479/value-for-money-framework.pdf ↩