The Government has confirmed its capital funding allocations for the education sector for the 2026/27 financial year. SCA budgets have seen a marginal increase of just over £53,000 for the year. However, the budget for Devolved Formula Capital (DFC) schools has reduced – most notably, the CIF budget has been set at £456,065,966, compared to £466,617,059 in the previous year. This represents a reduction of approximately £10 million nationally, which may result in increased competition and a more selective approval process.

For many in the sector, this announcement is an important precursor to the Condition Improvement Fund (CIF) outcome of the bidding process, which is expected to be announced in the coming weeks.

Condition Improvement Fund (CIF)

Despite changes that are coming down the line, CIF currently remains a vital route for smaller academy trusts and standalone academies to secure funding for significant condition and compliance projects.

It is worth noting that successful CIF bid values can often exceed the annual capital allocations available through other funding routes, making it a crucial opportunity for schools with large-scale project needs.

The reduction in the overall CIF funding pot this year reinforces the importance of submitting strong, well-evidenced bids. With demand likely to remain high, schools will need to clearly demonstrate project need, urgency, and value for money.

Preparing for the CIF bidding window

With just two more annual rounds of CIF available, eligible schools and academy trusts should review their strategy in regards to funding applications. Our team can help schools to do this by way of undertaking / reviewing condition surveys to identify priority projects.

Academy Schools that engage professional advice early to strengthen applications will be well-placed to secure vital investment in their buildings and infrastructure.

At Lea Hough Chartered Surveyors, we support schools, academies and trusts through every stage of the funding process, from initial project identification through to bid submission and delivery. Contact us now to discuss engaging the support of our School Building Consultants.

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