Common Implementation Centre European Commission, DG rtD 18 June 2025 Lump Sum Funding in Horizon Europe: Quick overview of the main features Why do we use lump sum funding? Lump sums are popular: Great majority of participants and experts
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Presentation Transcript
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Common Implementation Centre European Commission, DG rtD 18 June 2025 Lump Sum Funding in Horizon Europe: Quick overview of the main features<br>
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Why do we use lump sum funding? Lump sums are popular:
Great majority of participants and experts agree that lump sums reduce administrative burden and shift focus to project content; SMEs and newcomers particularly positive (see 2024 assessment) Vast majority of beneficiaries have only 1 or 2 grants per programme and need a simple funding model 2 Significant simplification potential
Focus on R&I content
Reducing the financial error rate
Easier access to the programme<br>
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Basic principles Lump sum grants follow the standard approach as much as possible
Same: templates, evaluation criteria, payment scheme, technical reporting
One lump sum share per work package and beneficiary
Very simple financial reporting; no financial audits
Lump sum shares are paid upon completion of work packages<br>
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Writing a lump sum proposal To write a lump sum proposal, you:
Use the standard Horizon Europe application form
Present the objectives and methodology of your project and address the expected outcomes and impacts as in any Horizon Europe proposal
Describe in detail the activities covered by each work package.
To define and justify the lump sum, you need to provide a detailed budget table with cost estimations.
The detailed budget table is an Excel file. You must download it from the online submission system, fill it and submit it as an annex to the Part B of your application form.<br>
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Writing a lump sum proposal In this detailed budget table, you provide cost estimations for each cost category per beneficiary (and affiliated entity if any) and per work package.
The cost estimations must be an approximation of your actual costs. They:
are subject to the same eligibility rules as in actual costs grants
must be in line with your normal practices
must be reasonable / non-excessive
must be in line with and necessary for your proposed activities.
The cost estimations are used to generate in the detailed budget table a breakdown of lump sum shares per work package and per participant.
Details and instructions on how to fill in the lump sum detailed budget table are provided in the Funding & Tenders portal.<br>
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Project design – Work packages Work package distribution
A work package (WP) is a major sub-division of the work plan of your project.
Work packages with a long duration may be split along the reporting periods (e.g. Management, Dissemination and Exploitation, etc.). In this way, the relevant activities can be paid at the end of the reporting period. A single activity is not a WP
A single task is not a WP
A % of progress is not a WP (e.g. 50 % of the tests)
A lapse of time is generally not a WP (e.g. activities of year 1) As many as needed but no more than what is manageable 6 Splitting WPs is entirely optional. It should be used if needed to optimise the cash flow.<br>
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Evaluation of a lump sum proposal Your proposal will be evaluated by independent experts against the standard evaluation criteria: excellence, impact, and implementation.
The cost estimations will be assessed against the proposed activities under the implementation criterion.
Experts will:
ensure that the cost estimations are reasonable and non-excessive
evaluate whether the proposed resources and the split of the lump sum allow completing the activities described in the proposal.
If the experts find overestimated costs, they make concrete recommendations on the budget that are recorded in the Evaluation Summary Report. This will be reflected in a modified lump sum amount in the grant agreement.
If the lump sum budget needs to be modified, this does not decrease your proposal’s chances of success. However, serious flaws in the proposed budget reduce the score.<br>
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Horizon dashboard for lump sum evaluations Evaluation experts must use the dashboard as an orientation to ensure that budgets are reasonable and non-excessive.
For each combination of country and organisation type selected, the dashboard displays the distribution between the 20th and the 80th percentile, and the median personnel costs.
Based on grants signed from 2022 (data last refreshed: 17 Apr 2025).
Applicants justify high personnel costs in the ‘Any comments’ tab of the Excel detailed budget table. Total person-months Access the dashboard here Personnel costs for Research Organisations in Germany ERC Advanced Grants use a different dashboard for lump sum evaluations. Personnel costs for Research Organisations in Romania Average personnel costs (per month per person)<br>
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Lump sum payments Most lump sum grants are paid in full
At final payment:
95% grants paid in full / 97% paid as declared
3% grants partially rejected
Average payment = 98% of maximum
At intermediate payment:
98% work packages accepted
2% rejected (= invited to improve)
Reductions during evaluation:
Very moderate cuts (2024 report)
No indication that cuts increased significantly but we will keep monitoring 38 partially paid: 5% Latest data confirm analysis presented in our 2024 report
Frequency of cuts in lump sum final payments. The sample analysed includes 754 lump sum grants that were closed by 3 April 2025 (485 grants under H2020 and 269 under HE).<br>
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Resources available One dedicated lump sum page on the Funding &Tenders Portal with:<br>
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For questions about research and Horizon Europe, you can contact the Research Enquiry Service via the webform:
Research Enquiry Service (europa.eu) Research Enquiry Service<br>
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Current developments Continuous monitoring of lump sum grants, adjustments if necessary
Two assessments of lump sum funding (2021 and 2024)
Ex-post technical reviews for lump sum grants, variant of existing project reviews
IT implementation of the detailed lump sum budget planned for Q4 2025
