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Guidance: FE capital funding

Department For Education

March 1
11:07 2023

Overview

We allocate funding to allow providers to:

  • upgrade college estates that are in an unsatisfactory condition
  • get specialist equipment
  • improve training facilities
  • create extra capacity to accommodate increases in 16- to 18-year-old learners

Additional FE capital funding for the 2022 to 2023 financial year

Eligible further education (FE) colleges and designated institutions will receive an allocation from an additional 53 million of capital funding to improve energy efficiency in 2022 to 2023. This is part of an additional 500 million of capital funding for schools and FE institutions in England.

Sixth-form colleges and other institutions that are eligible for devolved formula capital in 2022 to 2023 are included in the additional school capital funding allocations.

What funding is available

See:

Payments will go to college groups or designated institutions, where applicable.

The Education andSkillsFunding Agency (ESFA) will send grant agreement letters. If you return these by 3 January 2023, we will make payments in January 2023.

What can you spend it on

You must spend this funding on capital projects, prioritising projects that improve your college estates energy efficiency. Where you judge this is not appropriate based on local circumstances, you have discretion to spend this on other capital projects.

We expect you to spend this funding in the 2022 to 2023 financial year. However, you can spend it over the following 2 financial years if necessary.

See guidance for education providers on improving energy efficiency of your buildings and reducing energy use.

How funding is calculated

We based allocations on colleges and designated institutions ESFA revenue funding in 2021 to 2022. This included the following revenue funding streams:

  • 16 to19 revenue funding (core programme funding)
  • adult education budget (allocated):
    • adult skills
    • community learning
    • National Skills Fund - level 3 offer
    • 19 to 24 traineeships
  • apprenticeships carry in
  • 16 to 18 traineeships, including bursary funding
  • advanced learning loans bursary
  • adult education budget devolved data

We made adjustments so that FE colleges in devolved adult education budget areas receive their full allocation.

FE reclassification capital allocation

Eligible FE colleges, designated institutions and sixth-form colleges will receive a share of an additional 150 million in capital funding. This follows the reclassification of the FE sector.

What funding is available

See:

Where applicable, payments will go to:

  • college groups
  • designated institutions
  • sixth-form colleges

ESFA will send grant agreement letters in March 2023. If you return these by 3 April 2023, we will make the payment in April 2023.

What can you spend it on

This funding should be spent on capital projects, prioritising condition improvement of the colleges estate.

The funding must be spent between 1 April 2023 and 31 March 2025.

How funding is calculated

The funding is allocated in proportion with the revenue funding your institution received in 2021 to 2022, relative to other colleges that were eligible for this allocation. This included the following revenue funding streams:

  • 16 to 19 revenue funding (core programme funding)
  • adult education budget (allocated):
    • adult skills
    • community learning
    • National Skills Fund - level 3 offer
    • 19 to 24 traineeships
  • apprenticeships carry in
  • sixth-form colleges
  • 16 to 18 traineeships, including bursary funding
  • advanced learning loans bursary
  • adult education budget devolved data

We made adjustments so that FE colleges in devolved adult education budget areas receive their full allocation.

Condition Improvement Fund

The Condition Improvement Fund (CIF) is an annual bidding round for eligible academies, sixth-form colleges and voluntary-aided (VA) schools to apply for capital funding.

The priority for the fund is to address significant condition needs, keeping education provider buildings safe and in good working order. This includes funding projects to address:

  • health and safety issues
  • building compliance
  • poor building conditions

The CIFalso supports a small proportion of expansion projects. These are for academies, sixth-form colleges andVAschools rated good or outstanding by Ofsted that can demonstrate a need to expand.

Eligibility is confirmed each year when the new application round opens.

What funding is available

Budgets are confirmed on an annual basis.

The most recent funding round, CIF 2022 to 2023, provided funding of 498 million for 1,405 projects at 1,129 academies, sixth-form colleges and VA schools.

When to apply

The closing date for the 2023 to 2024 CIF application round is Wednesday 7 December 2022. The funding outcomes will be announced in May 2023.

Sign up for Condition Improvement Fund alerts.

Previously funded projects

A list of projects funded in CIF 2022 to 2023 is available.

FE capital transformation programme

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