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Funding & Finance Update - February 2026

Here is a summary of the key funding rounds available to education clients, with key dates highlighted where published, and the latest news on announcements on: 

Condition Improvement Fund

School Condition Allocation

Strategic School Improvement Capital Budget  

Energy Efficiency Funding     

Urgent Capital Support    

School-Based Nursery Capital Grant  

Basic Need     

Condition Improvement Fund (CIF)

The Condition Improvement Fundis an annual bidding round for eligible academies and sixth-form colleges to apply for capital funding. CIF funds urgent condition, compliance, and health and safety works.  

There were some key changes to the 2026/27 round as highlighted in our update 

In line with the new education estates standards, CIF will be replaced by a new capital maintenance allocation model from autumn 2028. 

Key Dates For CIF

CIF 2026-27 window   Closed 
Applicants notified of outcome   May 2026  

 

School Condition Allocation (SCA)

Eligible bodies receive a formulaic allocation in lieu of CIF bids for maintaining school buildings.   

The eligibility for SCA for the 2026-27 financial year is:

  1. Trust or VA body with 5 or more open schools at the start of September 2025. 
  2. Those open academies (or their predecessor schools) had at least 3,000 pupils counted in the spring 2025 census or the 2024 to 2025 individualised learner record (ILR)    


For nursery schools and sixth forms, DfE uses the number of full-time equivalent (FTE) pupils rather than headcount. 

 See Condition Funding Methodology and Guidance for 2025-26 for more information on how funding was calculated for 2025-26.  Single-academy trusts, smaller multi-academy trusts (MATs) and sixth-form colleges can apply for CIF instead of receiving an SCA. Those eligible for CIF were notified in May 2025.      

Key Dates For SCA

SCA 2025-26 announced  April 2025 
SCA 2026-27 expected   Spring 2026  

 

Strategic School Improvement Capital Budget (SSICB)

The Strategic School Improvement Capital Budget is a funding stream designed to remove barriers to academy transfers caused by urgent site issues. Unlike CIF, SSICB targets critical needs such as safeguarding, severe building conditions, or suitability problems.  

Funding applies only to exceptional cases and must be requested before transfer – retrospective bids are not accepted. Trusts should engage early with DfE regional teams, conduct thorough due diligence, and demonstrate strategic value. SSICB is not a substitute for long-term capital planning but can unlock growth opportunities for multi-academy trusts facing high-risk acquisitions. 

Our blog provides more insights. Read here 

Energy Efficiency Funding

In June, the Government announced the cancellation of the Public Sector Decarbonisation Scheme (PSDS) and the Low Carbon Skills Fund (LCSF) with no commitment to further investment beyond awarded programmes. All currently awarded funding in both schemes will remain fully funded.  

In addition, devolved regional funding grants are now available to public sector bodies to reduce their carbon emissions. Listed below are three funding avenues available in Greater Manchester, the West Midlands and Greater London areas.   

1. Greater Manchester – Public Building Retrofit Fund (PBRF)

The Greater Manchester Combined Authority (GMCA) launched a £28 million Public Building Retrofit Fund (PBRf) to cut carbon emissions across its public estate. Running from 2025 to 2028, the scheme supports schools, local authorities, NHS bodies, and other public organisations within the Greater Manchester Combined Authority area.  

Projects should focus on low-carbon heating, solar PV, insulation, and energy controls, backed by heat decarbonisation plans and robust carbon calculations. 

PBRf window 2 is now live. 

Key Dates For PBRF

PBRf Window 2 Registration Open  13th February 2026 
PBRf Window 2 Registration Closes   27th February 2026, 2 pm 
Gateway 1 application window opens  23rd March 2026 and ends at 14:00 on 29th May 2026. 
Gateway 1 assessment period ends  24th August 2026. 
Gateway 2 invitations sent approximately by   4th September 2026. 
Gateway 2 application period opens  4th September 2026 

 

Applicants should plan which window they apply for, which will best fit the delivery of their project.  

Read the full guidance and FAQs. 

 

Graduate school cap resting on piles of coins on top of a school book

2. West Midlands – Buildings Retrofit Pilot (WMCA)

A £167 million Buildings Retrofit Pilot was launched by the West Midlands Combined Authority to upgrade homes and public buildings over three years. Starting June 2025, the scheme replaces national PSDS and certain Warm Homes programmes for eligible local bodies, shifting to a fair-share funding model instead of competitive bidding. Local authorities, housing associations, and public sector organisations within WMCA’s area can apply.  

The process has two stages: Project Development (feasibility, assessments, data) and Project Delivery (procurement and installation).  

Read full guidance here. 

3. London – Retrofit Accelerator – Workplaces (RA-W) + Green Finance Fund

Retrofit Accelerator – Workplaces offers a supported procurement route for energy efficiency upgrades, formerly known as RE:FIT. Managed by the Greater London Authority (GLA), it provides expert guidance from start to finish, guaranteed energy savings, and access to the Green Finance Fund for capital.  

The funding is open to all London public sector bodies, including schools, colleges, the NHS, and local authorities. The scheme uses an EPC framework with pre-vetted providers.  

Organisations are invited to join via an Expression of Interest, after which GLA coordinates procurement and delivery.  

For more information on how Barker can support with the above funding, please contact our team. 

Urgent Capital Support (UCS)

UCS is for academies and sixth-form colleges that do not have access to SCA and require funding assistance to address urgent building condition issues that put at risk either the safety of pupils and staff or threaten closure of the whole or a significant part of the school.  This funding is open throughout the year. 

USC is primarily offered as a loan, subject to an assessment of finances, and trusts may be required to contribute. Grant funding will only be provided in exceptional circumstances. 

School-Based Nursery Capital Grant (SBN)

Introduced in October 2024, SBN provides an exciting opportunity for English state-funded primary-phase schools to enhance their early education offerings. This is a visionary initiative aimed at transforming surplus school spaces into vibrant nursery provisions. 

In September 2025, the DfE announced the second phase of its SBN Capital Grant programme, with £45 million set aside to create or expand a further 300 nurseries opening from September 2026 (application window now closed). A summary and outline of the application process is available here 

KEY DATES  

2025/26 Application Round   Closed 
Outcomes  April 2026  
Funding released  June 2026 
Projects operational   September 2026 
Final spend deadline  September 2027 

 

Phase 3 of the programme was launched in February 2026 and is open to state-funded primary schools via Local Authorities only. Read the guidance here 

The deadline for submissions to Phase 3 is Sept 2026. 

Basic Need

Basic Need Allocation is the funding given to local authorities each year to help them fulfil their duty to make sure there are enough school places for children in their local area.     

Allocations for the 2026-2027 and 2027-2028 financial years, announced in March 2025, will support local authorities to create the new school places they need by the start of September 2028.  

Capital funding for school places needed by 2028: explanatory note on methodology explains how DfE has calculated the funding for each local authority, using data from the school capacity survey. 

All local authorities have also been allocated additional capital funding to invest in provision for children and young people with special educational needs and disabilities through the high needs provision capital allocations.

Bid Writing

We recommend that academies and trusts start preparing for the next rounds of bidding before the funding application windows open. Contact Barker if you wish to discuss your projects or opportunities for education funding.    

We have a knowledgeable team of professional advisors, including RICS chartered surveyors and fully qualified bid writers who can help compile an extensive bid meeting the guidance criteria to gain funding.

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