GovWire

Guidance: Further education capital funding

Department For Education

January 29
14:43 2024

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 received an allocation from an additional 53 million of capital funding to improve energy efficiency in 2022 to 2023. This was part of an additional 500 million of capital funding for schools and FE institutions in England.

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

What funding is available

See:

Payments went to college groups or designated institutions, where applicable.

The Education andSkillsFunding Agency (ESFA) issued grant agreement letters. Payments were made in January 2023 as a one-off allocation.

What you can 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 the discretion to spend it on other capital projects.

We expect you to have spent 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 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
  • 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 received their full allocation.

FE reclassification capital allocation

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

What funding is available

See:

Where applicable, payments went to:

  • college groups
  • designated institutions
  • sixth-form colleges

ESFA sent grant agreement letters in March 2023. Payments were made in April 2023 as a one-off allocation.

What you can 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 received 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 funding round for CIF 2023 to 2024 provided funding of 456 million for 1,033 projects at 859 academies, sixth-form colleges and VA schools.

When to apply

The application window for CIF 2024 to 2025 closed on 14 December 2023.

Sign up for Condition Improvement Fund alerts.

Previous allocations

A list of projects funded in CIF 2023 to 2024 is available.

FE capital transformation programme

TheFE capital transformation programmeseeks to upgrade the FE college estate.

What funding is available

The

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