Contact us
Back to blog

Funding & Finance Update - May 2026

In an evolving education landscape, staying informed on funding developments and financial planning is essential for effective school leadership. In this article we provide a summary of the key funding rounds available to education clients, with key dates highlighted where published and the latest news and 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 condition, compliance, and health and safety works.  

The DfE has announced its allocation of CIF 2026/27  round, with a total funding of just under £450 million for various school condition projects being confirmed.

In line with the new education estates standards, the Condition Improvement Fund will be replaced by a new capital maintenance allocation model from autumn 2028.  Here is what you need to know about CIF ending.

Key Dates For CIF

CIF 2026-27 window Closed
Applicants notified of outcome 22 May
CIF Appeals deadline 12 June
CIF 2027/28 application window opens Autumn 2026


School Condition Allocation (SCA)

Eligible bodies receive a formulaic allocation in lieu of CIF 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 schools (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. 

School Condition Allocation and Devolved Capital Funding amounts for 2026/27 are published here. 

 See Condition Funding Methodology and Guidance for 2026-27 for more information on how funding was calculated for 2026-27.  Single-academy trusts, smaller multi-academy trusts (MATs) and sixth-form colleges can apply for CIF instead of receiving an SCA. 

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

Last year, the Government announced the cancellation of the Public Sector Decarbonisation Scheme (PSDS) and the Low Carbon Skills Fund (LCSF), with no confirmation of further funding beyond programmes already awarded. All existing projects approved under both schemes will continue to receive full funding. 

Alongside this change, new devolved regional funding opportunities are emerging, offering public sector organisations alternative routes to support carbon reduction initiatives. Below, we highlight three funding streams available across Greater Manchester, the West Midlands, and Greater London. 

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

Greater Manchester 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.  Read more on registration and the application process HERE 

Key Dates For PBRF

PBRf Window 2 registration ends 27 February 2026 
Gateway 1 application window closes  29 May 2026, 2pm 
Gateway 1 assessment period ends  24 August 2026
Gateway 2 invitations sent approximately by   4 September 2026 
Gateway 2 application period opens  4 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. 

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. 

Having started in June 2025, the scheme replaced 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. 

 

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

3. London – Retrofit Accelerator – Workplaces

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. Guidance and application forms are available on gov.uk.  

School-Based Nursery Capital Grant (SBN)

School-Based Nursery Capital Grant provides state-funded primary-phase schools with an opportunity to enhance their early education offerings.  

With phase 3 underway, the School-based Nursery (SBN) programme builds on the foundations of phases 1 and 2. 

The School-based Nursery Capital Grant 2027 to 2030 can be used by local authorities for state-funded primary-phase schools in England that already offer some early education (such as a reception class), seeking to create or expand an SBN on the current school premises. Read the full guidance here 

Schools that were successful in previous phases of the programme and received SBN capital grant funding are eligible for phase 3.

In such cases, local authorities should only propose projects that add new places beyond what was delivered in earlier phases and that represent good value for money.  

Key Dates For SBN

Phase 3 launched  Spring 2026 
Deadline for clarification questions about funding proposals  16 September 2026 [10 working days before submission] 
Deadline for local authorities to submit their funding proposals   30 September 2026, 5pm  
DfE to conduct compliance checks, the approval process and quality assurance  Autumn 2026 – Spring 2027 
Local authorities notified of outcome, DfE to issue grant letters and project initiation  Spring 2027 
Successful projects MUST understand whether they need to apply for Ofsted registration and start necessary applications if they do, in line with their timescales for opening  Spring 2027 onwards 
Quarterly project monitoring reports completed by local authorities   Summer 2027 onwards 
First projects aim to be operational   September 2027 
Final projects operational and deadline for capital funding provided to be spent   End of September 2030 

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 encourage academies and trusts to begin preparing early for upcoming funding rounds, ensuring plans are well developed ahead of application windows opening.

If you would like to discuss your projects or explore potential funding opportunities, Barker is here to support you.

Our experienced team of professional advisors, including RICS chartered surveyors and specialist bid writers, can help you develop a robust, compliant submission aligned with funding criteria, maximising your chances of success.

Discuss Your Upcoming Opportunities

 

See
the project