A - Z
This glossary explains terms that are used in government grant funding.
Allocative funding
Funding that is distributed without the need for an application (see, ‘Competitive funding’). Instead, government departments must present clear and transparent justifications as to why funding should be allocated to which places. As with competitive funding, allocation can result in some places receiving funding and others not. Also known as ‘un-competed grants’.
Applicant
A person or organisation applying to the government for funding.
Application
The information an applicant provides to support their request for funding.
Asset
An item of monetary value that an organisation owns.
Assets can be sold at the end of a project.
Assurance
Assurance checks take place to give MHCLG confidence that planned activity is taking place and money is being spent as intended.
Authorised signatory
A person who is allowed to act on behalf of an organisation and will sign any grant funding agreement.
Bid
Bid is often used interchangeably with application. We recommend using application, as it is universally applicable.
Capital funding
Money used to buy, lease or improve capital assets, such as buildings, land or equipment.
Competed grant
Funds for which applications are invited and evaluated, with awards made based on the outcome of the application.
Criteria
Specific principles or standards that a project has to meet to be eligible to receive funding. For example, grants to assist people affected by floods.
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Eligibility
The specific criteria that must be met to apply for, or be allocated, funding.
Full business case
Also known as a final business case.
A full business case is part of a proposal for a big project. It should:
- include the most financially viable offer
- confirm affordability
- put in place the detailed arrangements for successful delivery
Grant
A grant is a way of the government providing money to organisations and individuals. Grants advance government policy but do not give a direct economic benefit to the recipient.
A grant is usually given as a sum of money if the applicant meets the conditions of the fund.
The money can be reclaimed under certain conditions, for example, if the recipient:
- misuses the money
- fails to spend any of the money
- is unlikely to spend the money within the agreed timeframe
Grant funding agreements
The conditions that an applicant must meet to receive funding.
Grant manager
Also known as contract manager for some MHCLG projects.
A member of staff at MHCLG responsible for the delivery of a project.
Grant recipients
The projects or organisations that are receiving funding.
The Green Book
HM Treasury guidance on how to appraise and evaluate policies, projects and programmes.
Source: The Green Book (2022).
Heads of lease
Before they sign a commercial rental agreement, the landlord and renter will agree on terms.
This is a document which reflects the commercial deal agreed:
- between two parties
- outlines the fundamental terms
These are usually included in the first draft of the legal documentation. The solicitor for either party can do this.
Intervention
An action taken by an individual or organisation to achieve project and/or programme objectives. For example, installing a cycle path might be a project intervention to achieve certain policy objectives related to transport.
Intervention rate
A rate at which MHCLG will pay claims.
Some funds will agree to an intervention rate of payment. It will depend on where in the country a project is. Areas that might need support could receive payment of a higher intervention rate.
For example, if an intervention rate is 80%, when a grant recipient submits a claim for £100, MHCLG will only pay £80 of the claim.
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Levelling up
Political policy initiated by the previous Conservative government that tackles inequality in different places and regions.
Match funding
An amount of money that an organisation, for example a local authority, will need to raise to match the funding given by MHCLG.
Sources include:
- public bodies
- administrations
- devolved administrations
- charitable trusts
- national lottery funders
- community shares
- social investors
- other lenders
Monitoring and evaluation
The process of collecting, analysing and evaluating data about grants and funding.
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Outcome
An outcome is the impact of a change. Outcomes measure impact by how much it affects society.
Source: Government Green Book
Output
An output is a measurable change. It can relate to the level or quality of a service.
Source: Government Green Book
Project
A piece of work that delivers an output.
Source: Government functional standards common glossary
Public Sector Equality Duty (PSED)
In all their work, public bodies must think about the need to:
- end unlawful discrimination
- remove barriers for people with protected characteristics
- foster good relations between different people
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Revenue funding
Used towards the running costs of a project. This might include general costs, including for:
- utilities
- staffing
- appointing external consultants
Reporting
The action taken by grant recipients, for example a local authority, to report data on the progress of their projects and programmes. This allows the department to conduct monitoring and evaluation.
Subsidy control regime
A legal document that explains how the subsidy control regime will work in the UK.
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Un-competed grant
A grant that is awarded to a single organisation or individual without competition, for example, where there is only a single organisation that has the capability of delivering the objectives. Often referred to as a ‘direct award’. Grant-in-aid is not part of this category.
Value for Money (VfM)
A judgement on whether a project will offer good value to the public. It relies on the information provided by the applicant.
A value for money judgement is made up of:
- benefit cost ratio (BCR)
- the project deliverables
- the project risks
- the organisation’s ability to deliver its proposal
- fit with government strategies and policies
Source: Government Green Book
White paper
Policy documents produced by the government that set out their proposals for future legislation.
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