Lump Sum Funding in Horizon Europe

For certain programmes under Horizon Europe, the European Commission has introduced lump sum funding as an alternative to the traditional cost-reimbursement model. Instead of covering actual costs, the Commission provides beneficiaries with a fixed grant amount, agreed in advance and detailed in the grant agreement.

This approach shifts the focus from financial reporting to performance-based evaluation, reducing administrative effort and minimising errors. Beneficiaries no longer need to report incurred costs, making participation simpler and more accessible—particularly for smaller organisations and newcomers who may lack the capacity to handle complex financial rules.

How Lump Sums Work

• Pre-defined and fixed: Each work package is allocated a lump sum in the grant agreement.
• Paid upon completion: Payments are triggered when a work package is completed, regardless of research results.
• Same standards: Lump sum projects follow the standard evaluation criteria, reporting periods, pre-financing, and payment schedules. Performance is assessed in the same way as cost-based projects.
• Flexibility: Work packages can be amended if needed (e.g., to adapt to new scientific developments).

Importantly, payments are not linked to research outcomes, which are inherently uncertain, but to the successful completion of planned activities. This ensures fairness and predictability while giving researchers the flexibility to adapt as projects evolve.

Benefits of Lump Sum Funding

• No cost reporting
• No financial ex-post audits
• Reduced administrative burden
• Easier access for small organisations and newcomers
• More focus on scientific and technical work

By removing financial complexity, lump sums enable participants to dedicate more time to research and innovation rather than paperwork.

Lump Sum Options in Horizon Europe

There are two types of lump sum funding available:

1. Fixed Lump Sum (set by the call)
   • The call for proposals specifies a pre-defined lump sum.
   • Your proposal budget must match this amount.
   • You must describe the resources mobilised to implement the project within this budget.
2. Applicant-Defined Lump Sum
   • You propose the lump sum amount in your application.
   • The sum must be justified by the planned resources and activities.
   • The type of lump sum (fixed or applicant-defined) is indicated in the specific call text.

👉 In summary: Lump sum funding under Horizon Europe simplifies project management, reduces administrative risks, and makes the programme more inclusive—without changing the core principles of project planning, evaluation, or execution.

Source and more information on the EC website.