Globally, performance-based research funding aims to support the most deserving academic institutions and researchers. However, overcoming entrenched assumptions about quality is a persistent challenge for higher education research policies worldwide; traditionally powerful institutions tend to maintain dominance. Research impact as a performance criterion presents an opportunity for position-taking through success according to non-academic criteria. Could impact-oriented research funding challenge institutional hierarchies? The UK university system presents an instructive case study for exploring this question. However, exposing the effects of such performance-based funding on institutional stratification requires focusing on the interface between institutions and disciplines. A Bourdieusian analysis of 53 cases of research-based impact on higher education policy/practice revealed the differential capital that researchers from more and less 'prestigious' universities mobilise when generating research impact. By uncovering how impact reinforces disparities in research power between UK institutions, the study contributes to understanding of sectoral reproduction through discipline-level mediation of research policy.