Overview

CapitalWe allocate funding has been made available to supportallow providers to:

• maintainupgrade theircollege estateestates andthat addressare poorin an unsatisfactory condition
• get specialist equipment
• improve training facilities
• create extra capacity to accommodate increases in 1616- to 18-year-old learners
• get specialist equipment
• improve training facilities

FurtherAdditional education (FE) collegecapital conditionfunding allocation:for 2025the 2022 to 20262023 financial year

All Eligible further education (FE colleges) colleges and designated settingsinstitutions received aan shareallocation offrom an additional £302£53 million inof capital funding to improve energy efficiency in 20252022 to 20262023. throughThis the furtherwas educationpart collegeof conditionan allocation:additional 2025£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 20262023 were included in the additional school capital funding allocations.

What funding is available

GrantSee:

• additional FE capital funding allocations 2022 to 2023 (ODS, 14.2 KB)
• additional FE capital funding allocations 2022 to 2023 (MS Excel Spreadsheet, 33.4 KB)

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

The Education and Skills Funding Agency (ESFA) issued grant agreement lettersletters. Payments were sentmade in AprilJanuary 2025.2023 as a one-off allocation.

What you can spend it on

ThisYou must spend this funding shouldon becapital projects, prioritising projects that improve your college estate’s 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 towardsthis improvingfunding in the condition2022 andto preventing2023 deteriorationfinancial year. However, you can spend it over the following 2 financial years, if necessary.

See guidance for education providers on improving energy efficiency of FE collegeyour buildings and grounds,reducing prioritisingenergy safetyuse.

How funding is calculated

We based allocations on colleges’ and keepingdesignated buildingsinstitutions’ operationalESFA revenue funding in 2021 to 2022. This included the following revenue funding streams:

The

• 16 to 19 revenue funding must(core beprogramme spentfunding)
• adult beforeeducation 31budget March(allocated):
  • adult 2028.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 capital transformationreclassification programmecapital allocation

The Eligible FE capital transformationcolleges, programme isdesignated upgrading FE collegeinstitutions estates,and withsixth-form colleges received a share of an additional £150 million in capital funding. This followed the majorityreclassification of projectsthe completingFE bysector.

What Marchfunding 2026.is available

See:

• allocations for FE reclassification capital allocation (ODS, 13 KB)
• allocations for FE reclassification capital allocation (MS Excel Spreadsheet, 18.9 KB)

UnderWhere thisapplicable, programme:payments went to:

• all FEcollege groups
• designated institutions
• sixth-form colleges

ESFA colleges receivedsent agrant shareagreement ofletters in March 2023. Payments were made in April 2023 as a formulaicone-off allocationallocation.

What ofyou £200can millionspend toit supporton

This themfunding toshould carrybe outspent on capital projects, prioritising condition improvement projects,of completedthe bycollege’s Septemberestate.

The 2021

wefunding workedmust be spent between 1 April 2023 and 31 March 2025.

How funding is calculated

The funding is allocated in partnershipproportion with 16the FErevenue collegesfunding your institution received in 2021 to address2022 somerelative ofto theother worstcolleges conditionthat siteswere ineligible for this allocation. This included the country

following revenue funding streams:

• 7516 grant-fundedto projects19 haverevenue beenfunding taken(core forwardprogramme by collegesfunding)
• 143adult FEeducation collegesbudget received(allocated):
  • adult askills
  • community sharelearning
  • National ofSkills £286mFund in- Aprillevel 20233 offer
  • 19 to tackle24 remainingtraineeships
• apprenticeships poorcarry conditionin
• sixth-form – colleges
• 16 haveto until18 Marchtraineeships, 2026including tobursary spendfunding
• advanced thelearning fundingloans 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 The Condition Improvement Fund (CIF) is 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 need,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

EligibilityThe andCIF also budgetssupports a small proportion of expansion projects. These are for academies, sixth-form colleges and VA schools rated good or outstanding by Ofsted that can demonstrate a need to expand.

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

T

What Levelsfunding specialistis equipmentavailable

Budgets allocationare (SEAconfirmed 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

SEAThe FE capital transformation programme seeks to upgrade the FE college estate.

What funding is available

The FE capital transformation fund is investing £1.5 billion over 6 years, ending in March 2026, to upgrade FE college estates. To date, we have:

• given all eligibleFE Tcolleges Levela providersshare whenof theya beginformulaic deliveryallocation of £200 million in autumn 2020 to support them to carry out condition improvement projects
• targeted some of the worst-condition sites in the country, working in partnership with 16 colleges to deliver their capital projects
• directed funding of approximately £410 million to 60 colleges with 75 projects that were successful in the bidding process
• supported a Tfurther Level2 routecondition-improvement projects in colleges that are involved with ESFA specialist restructuring
• announced that the final stage of the programme will be through a formulaic allocation to eligible FE colleges and designated institutions

We have published the allocations for the firstfinal time.stage Youof shouldthe useFE SEAcapital transformation fund.

A list of successful applications at stage 2 of bidding for the FE capital transformation fund is available.

Post-16 capacity fund

The post-16 capacity fund supports post-16 education providers to helpaccommodate buydemographic industryincreases standardin specialistlearners equipmentaged you16 needto 19.

What funding is available

The most recent funding round made £140 million available for bidding providers to deliver projects creating additional capacity from September 2024.

When to apply

The application window for the latest funding round closed on 11 November 2022.

Previous allocations

A list of projects that made successful bids for post-16 capacity funding is available.

T Levels.Levels capital fund

The T Levels capital fund is available to support providers with a 16 to 19 funding contract delivering T Levels courses with industry placements from September 2024.

When to apply

FundingThe supportT Levels capital fund is currently closed for theapplications.

Sign academicup yearfor 2026T Levels capital fund alerts to 2027find onwardsout when the next stage of the fund is stillopening.

Previous underallocations

A reviewlist andof wethe willsuccessful setapplications outfor moreT detailLevels incapital duefund course.wave 5 is available.

Higher technical education skills injection fund

ThisThe skills injection fund was previously known as the higher technical education growth fund.

The fund will help providers offer more higher technical qualifications (HTQs).

The higher technical education (HTE) skills injection fund 2 builds on the success of:

• the HTE growth fund, which launched in 2021 and has invested £14.5 million to support HTQs in occupational routes from cycles 1 and 2
• the HTE skills injection fund, which launched in 2022 and has seen over £21 million allocated to support all level 4 and 5 HTE qualifications in cycles 1, 2 and 3

What funding is available

The fund is for providers preparing to deliver across all 15 occupational routes up to the 2025 to 2026 academic yearyear.

The HTE skills 2029injection fund 2 has a total budget of £48.8 million for the 2023 to 2030.2024 and 2024 to 2025 financial years.

When to apply

HigherThe technicalapplication educationwindow for round 2 of the HTE skills injection fund 2:is informationnow forclosed.

Previous allocations

A list of successful applicants hasis moreavailable information.for:

Previous

• higher allocations

Additionaltechnical FE capitaleducation fundingskills –injection tofund be(round spent1)

higher bytechnical Marcheducation 2025

skills injection fund (round 2)

Strategic development fund

EligibleThe strategic FEdevelopment fund (SDF) provided collegesinvestment andto designateddifferent settingsEnglish receivedregions anfor allocationthe from2022 anto additional2023 £53financial millionyear of(round capital2 fundingof tothe improveprogramme).

The SDF provided energyinvestment efficiencyto inenable 2022areas toacross 2023.England Thisto:

• reshape neededtheir toteaching beand spenttraining byprovision
• update Marchtheir 2025.facilities Itin waspreparation partfor ofthe anrollout additionalof local £500skills millionimprovement ofplans capital(LSIPs)

What funding foris schoolsavailable

This and furtherfunding educationis settingsno inlonger England.available.

Previous allocations

Sixth-formA collegeslist andof otherthe settingssuccessful thatapplicants wereappointed eligibleto forpilot devolvedthe formulaSDF capitaland inLSIPs is available for:

• 2022 to 2023
• 2021 wereto included2022

Local inskills the additionalimprovement schoolfund

The capitallocal fundingskills allocationsimprovement fund (LSIF) is designed to enable FE providers across a geographic area to respond collectively to the priorities in the LSIPs.

What funding wasis available

The LSIF is available across 2 financial years:

• additional£80 FEmillion capitalin funding2023 allocationsto 20222024 to(£40 2023 (ODS,million 14.2revenue KB)and £40 million capital)
• additional£85 FEmillion capital fundingin allocations2024 2022 to 2023 (MS2025

The LSIF builds Excelon Spreadsheetthe SDF, 33.4which KB) was piloted in 2021 to 2022 and rolled out across England in 2022 to 2023.

FEWhen to apply

The LSIF reclassification capitalfund allocationis –currently closed for applications.

Institutes of Technology

Capital investment is to befund spentnew-builds, byrefurbishments Marchand 2025specialist equipment.

Eligible Institutes of Technology are collaborations between FE colleges, designatedcolleges, settingsuniversities and sixth-formemployers collegesto receivedoffer aHTE shareand oftraining anat additionalhigher £150skills millionlevels in capitalkey science, technology, engineering and mathematics (STEM) sectors where employer demand is greatest.

What funding inis Aprilavailable

The 2023.government Thisis neededinvesting up to be£290 spentmillion byto Marchprovide 2025.the capital investment required to establish a comprehensive network of Institutes of Technology across England.

When to apply

The application window for Institutes of Technology funding followedis now closed.

Previous allocations

A list of the Institutes of Technology in operation and those currently in development is available.

College capital loans

College capital loans will provide funding to eligible capital projects in the 2023 to 2024 and 2024 to 2025 financial years. These loans will cover funding gaps resulting from commercial borrowing restrictions following the reclassification of the FE sector.

Capital loans are repayable and lending is subject to terms and conditions.

What funding wasis available

• allocations

  There foris FEno reclassificationlimit to the amount of capital allocation (ODS,loan 13you KB)

• allocationscan forapply FEfor. reclassificationYou capitalmust allocation (MSprovide Excelevidence Spreadsheet,of 18.9the KB)