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Funding & Finance Update - April 2025

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    

Energy Efficiency Funding     

Urgent Capital Support    

School-Based Nursery Fund 

Basic Need     

Further Education College Condition Allocation     

 

1. CIF (Condition Improvement Fund)   

Condition Improvement Fund is an annual bidding round for eligible academies and sixth-form colleges to apply for capital funding. The priority for the fund is to address significant condition needs, keeping academy and sixth-form college buildings safe and in good working order. This includes funding projects to address health and safety issues, building compliance and poor building conditions.    

The Condition Improvement Fund also supports a small proportion of expansion projects. These are for Ofsted-rated good or outstanding academies and sixth-form colleges that need to expand their existing facilities and/or floor space. If you wish to submit a new project in the next CIF application round you should be starting to prepare your bid NOW.    

The DfE has updated Information for eligible academy trusts. New information has been added about submissions for Urgent Capital Support, updated guidance and application form, and a new Trust financial template.    

Key dates    

 CIF 2025/26:                            Closed   

Outcomes:                               Expected May 2025     

CIF 2026/27:                     Expected Autumn 2025 

 

  2.  SCA (School Condition Allocations)    

Eligible bodies (MATs) receive a formulaic allocation in lieu of CIF bids.  DfE has notified academy trusts of their 2025-26 allocations 

The eligibility criteria are:    

  • Trust or VA body with 5 or more open schools at the start of September 2024. 
  • Those open academies (or their predecessor schools) had at least 3,000 pupils counted in the spring 2024 census or the 2023 to 2024 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.     

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 will be notified in May.     

 

3. Energy Efficiency Funding    

The Government set up two new funds to deliver energy efficiency measures and heat decarbonisation measures through, Public Sector Decarbonisation Scheme (PSDS) and Public Sector Low Carbon Skills Fund (LCSF)    

Public Sector Decarbonisation Scheme  

Primarily focusing on the decarbonisation of heat, the Public Sector Decarbonisation Scheme offers the opportunity for public bodies to bid for grant funding to support replacement/upgrades to existing heating systems using low/zero carbon technologies such as air source, water source and ground source heat pumps.  

Key dates   

Phase 4 application round:        Closed 

Outcomes:                                   Expected May 2025  

Next round:                                 TBC  

For more information and guidance watch Barker’s webinar on PSDS Phase 4 below:

 

 

Education funding jar wearing a graduation cap

Public Sector Low Carbon Skills Fund     

Salix launched Phase 5 of the Low Carbon Skills Fund(LCSF) for the public sector to develop heat decarbonisation plans for their estates. LCSF represents a significant step forward the mission to transition to a low-carbon future. With up to £16 million in funding available the opportunities are significant.   

Key dates    

Phase 5 LCSF application round:           Closed   

Next round:                                         2025/26 round has been cancelled

Here is how Barker supports our clients with LCSF. Information on future rounds will be provided as and when available. 

Alternative funding sources    

If you have energy efficiency projects and seek funding, you may wish to look at alternative private funding options.    

 

4. UCS (Urgent Capital Support)

Urgent Capital Support (UCS) is for academies and sixth-form colleges who 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 the closure of the whole or a significant part of the school.    

This funding is open throughout the year. The DfE has updated information for eligible academy trusts. New information has been added about submissions for UCS funding, updated guidance and application forms, and a new Trust financial template.    

 

5. School-Based Nursery Capital Grant

Introduced in October 2024, School-Based Nursery Capital Grant 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. 

Application outcomes for the School-based nursery capital grant 2024-2025 were announced in early April. The DfE awarded 300 schools a total of £37 million under the scheme.  

A list of successful applicants can be found here

 

6. 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. This is in addition to allocations announced in 2023 for the 2025-2026 financial year school places needed by September 2026.  

Capital funding for school places needed by 2028: an 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

 

7. Further Education College Condition Allocation 

The Government’s recent allocation of £302 million for further education (FE) colleges marks a significant opportunity for strategic estate transformation. This funding enables essential maintenance and condition improvement works across college estates. With the shift from competitive bidding to formula-based distribution, colleges in England can now benefit. Colleges have the flexibility to set their own priorities, making this funding a pivotal chance to enhance their estates strategically.  

 

8. Bid Writing 

We recommend academies and trusts start preparing for the next rounds of bidding before the funding application windows open. Please 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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