Further education capital funding
Guidance to help further education (FE) providers understand what capital funding is available, who can apply and how funding can be used to improve estates.
Applies to England
Overview
The Education Estates Strategy sets out plans for an education estate that supports opportunity for all. It is backed by a 10-year plan to deliver a decade of renewal to transform schools and colleges.
At the core of our strategy is a shift to more proactive management, long-term strategic maintenance and more renewal of the existing estate. This is alongside building and rebuilding where renewal is not possible, and ensuring there are high-quality places from early years to post-16.
FE providers play an essential role in supporting economic growth and strengthening communities. Our aim is to ensure the FE college estate can meet this role now and in the future.
We want an estate that is safe, well maintained and fit for purpose. It should be accessible to people of all ages and provide high‑quality spaces for gaining the skills employers need. A strong FE college estate will help deliver growth and support the long‑term renewal of local areas and the wider economy.
Post-16 and construction skills capacity funding in non-devolved areas: 2026 to 2030
In non-devolved areas, £287 million of post-16 and construction skills capacity funding is available through a national bidding round. Eligible providers could apply for funding to accommodate additional post-16 learners due to rising population numbers or to expand construction course provision, at sites located in non-devolved areas.
The deadline for applications closed on 20 April 2026 and applications are currently being assessed.
Post-16 and construction skills capacity funding in devolved areas: 2026 to 2030
£283 million has been devolved to metro mayors and local leaders to invest in sites located in their areas to accommodate additional post-16 learners. Devolved areas post-16 capacity allocations explains how the 2026 to 2030 allocation for devolved areas is calculated, and shows the allocation totals and memorandum of understanding.
Further education (FE) college condition allocation: 2025 to 2030
All FE colleges and designated settings received a share of £307 million in capital funding through the further education college condition allocation: 2026 to 2027. This is the second year that FE colleges have received a condition allocation (£302 million was provided in 2025 to 2026).
What you can spend it on
This allocation should be spent towards improving the condition and preventing deterioration of FE college buildings and grounds, prioritising safety and keeping buildings operational.
The funding must be spent within 3 years.
Annual funding will continue until 2030.
FE capital transformation programme
The FE capital transformation programme has sought to upgrade FE college estates. All funding rounds are now complete and the majority of projects have been completed. However, there are a small number of larger more complex projects that the department is continuing to support.
Under this programme:
- all FE colleges received a share of a formulaic allocation of £200 million to support them to carry out condition improvement projects, completed by September 2021
- DfE worked in partnership with 16 FE colleges to address some of the worst condition sites in the country
- 75 grant-funded projects have been taken forward by colleges
- 144 FE colleges received a share of £286 million in April 2023 to tackle remaining poor condition – colleges had until March 2026 to spend the funding
Condition Improvement Fund
The Condition Improvement Fund (CIF) is an annual bidding round for eligible academies, sixth-form colleges and voluntary-aided schools to apply for capital funding.
The priority for the fund is to address significant condition need, 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
We plan to introduce a new programme by autumn 2028 to replace the Condition Improvement Fund to make it easier for eligible Responsible Bodies to access this maintenance funding so they will no longer need to submit full bids.
Capital Support for T Level Providers – academic year 2026 to 2027
Eligible providers will have received grant offer letters confirming capital funding for 2026 to 2027 to help them buy industry standard equipment for delivering T Levels in priority routes from September 2026.
This £11.36 million grant is formula based, using the T Level Data Collection (TLDC) to determine allocations. It supports routes where equipment needs and future skills demand are highest, including:
- Engineering and Manufacturing
- Construction
- Digital, Health and Science
- Creative and Design, and Agriculture
- Environmental and Animal Care
Updates to this page
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'Further education (FE) college condition allocation: 2025 to 2030' updated with details of latest allocation.
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Added 'Post-16 and construction skills capacity funding in non-devolved areas: 2026 to 2030'. This includes a link for applicants to apply by 5pm on 17 April 2026. Removed 'Higher technical education skills and injection fund' and 'Previous allocations', as these are out of date.
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Updated for the academic year 2025 to 2026 and added information on the T Levels specialist equipment allocation (SEA).
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Added sections for 'Local skills improvement fund', 'College capital loans' and 'Funding assistance for building condition issues'. Updated 'Additional FE capital funding for the 2022 to 2023 financial year' and 'FE reclassification capital allocation', as payments have been made. Updated 'T Levels capital fund' and 'Higher technical education skills injection fund', as applications for wave 5 and round 2 respectively have closed and the outcomes have been published.
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Updated the section on the post-16 capacity fund. The latest funding round closed in November 2022. A list of projects that made successful bids is available.
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Added a link to the allocations for the final stage of the FE capital transformation fund.
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Added information about allocations for the final stage of the FE capital transformation fund programme.
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'FE reclassification capital allocation' section has been added.
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'Additional FE funding for the 2022 to 2023 financial year' section has been added.
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The 'FE capital transformation programme' section has been updated to highlight that the next stage of the programme will be announced in winter 2022 to 2023. The 'Condition Improvement Fund' section has been updated to show that the 2023 to 2024 application round will close on 7 December 2022 and the funding outcomes will be announced in May 2023.
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Information on the next funding round for the post-16 capacity fund has been added.
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First published.