Innovate UK is offering 100% funded contracts of £1.5 million to £3 million to companies developing components and sub-systems for commercial quantum networks.
This Contracts for Innovation competition, which closes to applications on 20 May 2026, aims to strengthen the UK’s position as an integral part of the quantum technology supply chain.
Unlike a standard Innovate UK grant, Contracts for Innovation is a procurement of R&D services. This means your project is 100% funded, and you will not need to secure match funding.
Below, I have explained the key things you need to know about this competition before you apply: who is eligible, how much funding is available, and what the application process looks like.
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Who is Eligible?
Your Organisation
To lead a project, you must be a UK-based organisation of any size. International organisations, including those based in the EU or EEA, can also apply.
Contracts are awarded to a single legal entity. So, the majority of the project work and key deliverables must be completed by your own organisation.
Your Project
Your project must focus on one of the following themes:
- Enabling long-distance quantum networking, including hybrid quantum/classical communications
- Networking of quantum computers
- Networking of quantum sensors, including for time transfer
- Techniques for securing data in storage and in flight
Your project must:
- Request a contract of between £1.5 million and £3 million. This includes VAT
- Start on 1 September 2026
- Last 18 months
- End by 28 February 2028
All funded work must be carried out in the UK, and you must intend to exploit the project results from or within the UK.
Your project must also:
- Attribute at least 50% of the contract value directly and exclusively to R&D services, including solution exploration, design, and prototyping
- Deliver a Prototype Validation Report (PVR) demonstrating how your prototype meets its technical specification in a real-world deployment context
- Deliver a System Design Document (SDD) showing how your component or sub-system integrates into a larger quantum networking system
- Develop an industrially relevant, deployable prototype of an enabling component or sub-system for commercial quantum networks
- Engage with relevant system integrators and service providers to inform your SDD
- Focus on one of four specific themes as an intended use case for a quantum networking system
- Have a credible and practical plan to commercialise your results, within or from the UK
- Use second-generation quantum technologies. These are technologies involving the generation and coherent control of quantum states — including technologies involving single photon generation and detection
How Much Funding Can I Apply For?
Because this is a Contracts for Innovation competition, the funding model is different from a standard Innovate UK grant. There are no funding rate percentages: your project is 100% funded.
Individual contracts range from £1.5 million to £3 million, inclusive of VAT.
| Funding Type | Coverage |
|---|---|
| Prototype Development and Evaluation* | 100% of eligible costs (inclusive of VAT) |
*Prototype development and evaluation can include prototyping, demonstrating, piloting, testing and validation of new or improved products, processes or services in environments representative of real-life operating conditions.
How Do I Apply?
Applications are submitted through the Innovation Funding Service (IFS). The application is split into four sections.
- Project details (not scored). This includes a range of covers administrative questions, including your project summary, public description, and organisation location. Your answers here are used to check scope fit, not to score your application.
- Application questions (partially scored). This section contains 13 questions in total. Questions 1 to 6 are unscored and cover areas like your project’s theme, permits and licences and international collaboration.
Questions 7 to 13 are scored and cover your proposed idea or technology, project plan and methodology and commercial potential. Each answer can be up to 400 words long.
You can (and we recommend that you do) include appendices (PDFs of up to two A4 pages) to support your answers for the proposed technology (Q7), project plan (Q10), and costs (Q12). - Finances is where you enter your milestone payment schedule and project costs. Payments are made monthly in arrears, so you’ll need to plan your cash flow carefully throughout the project.
- Project Impact (not scored) provides background on the broader impact of your project and must be completed before you can submit.
If You’re Successful
If your application passes the initial assessment, you may be invited to an interview between 13 and 16 July 2026, where you’ll give a presentation of up to 20 minutes followed by a 30-minute Q&A panel.
If you’re successful, you’ll be notified of the outcome by 22 July 2026.
Innovate UK’s Portfolio Approach
Like with most competitions, Innovate UK takes a ‘portfolio approach’ by funding projects across different technologies, markets and technological maturities. This means that a strong score won’t necessarily guarantee that your application will be successful.
Maximise Your Chances with GrantTree
GrantTree has spent 15 years helping cutting-edge UK companies – like those developing quantum computing technologies – to secure government funding. In other words, we know what it takes to write a successful application.
We have a range of services to suit a variety of budgets and needs, including our end-to-end Full Service Write Offering (conducted by an active Innovate UK assessor), and Elevate, where you can choose a collection of support that is tailored to your requirements.
To find out how we can help, just get in touch.
