UK government provides underpinning research capability and research projects for universities via two streams of funding known as the dual support system, so as to maintain and promote the research ability of universities. The increased diversity of research sources since 1990's have damaged the balance of research income structure, and put the stress on the sustainability of university research. In order to change this situation, UK government made strategic planning to increase the research budget significantly, and modified the research allocating methods. Studying the UK government funding system on the university research is important for reforming and perfecting the current funding and management system of Chinese university research.