FEFurther education capital funding

Overview

We allocate funding to allow providers to:

• upgrade college estates that are in an unsatisfactory condition
• get specialist equipment
• improve training facilities
• create extra capacity to accommodate increases in 16- to 18-year-old learners

Additional FE capital funding for the 2022 to 2023 financial year

Eligible further education (FE) colleges and designated institutions willreceived receive an allocation from an additional £53 million of capital funding to improve energy efficiency in 2022 to 2023. This iswas part of an additional £500 million of capital funding for schools and FE institutions in England.

Sixth-form colleges and other institutions that arewere eligible for devolved formula capital in 2022 to 2023 arewere included in the additional school capital funding allocations.

What funding is available

See:

• additional FE capital funding allocations 2022 to 2023 (ODS, 14.2 KB)
• additional FE capital funding allocations 2022 to 2023 (MS Excel Spreadsheet, 33.4 KB)

Payments willwent go to college groups or designated institutions, where applicable.

The Education and Skills Funding Agency (ESFA) willissued send grant agreement letters. IfPayments youwere returnmade thesein by 3 January 2023,2023 weas willa makeone-off payments in January 2023.allocation.

What you can spend it on

You must spend this funding on capital projects, prioritising projects that improve your college estate’s energy efficiency. Where you judge this is not appropriate based on local circumstances, you have the discretion to spend it on other capital projects.

We expect you to spendhave spent this funding in the 2022 to 2023 financial year. However, you can spend it over the following 2 financial yearsyears, if necessary.

See guidance for education providers on improving energy efficiency of your buildings and reducing energy use.

How funding is calculated

We based allocations on colleges’ and designated institutions’ ESFA revenue funding in 2021 to 2022. This included the following revenue funding streams:

• 16 to 19 revenue funding (core programme funding)
• adult education budget (allocated):
  • adult skills
  • community learning
  • National Skills Fund - level 3 offer
  • 19 to 24 traineeships
• apprenticeships carry in
• 16 to 18 traineeships, including bursary funding
• advanced learning loans bursary
• adult education budget devolved data

We made adjustments so that FE colleges in devolved adult education budget areas receivereceived their full allocation.

FE reclassification capital allocation

Eligible FE colleges, designated institutions and sixth-form colleges willreceived receive a share of an additional £150 million in capital funding. This followsfollowed the reclassification of the FE sector.

What funding is available

See:

• allocations for FE reclassification capital allocation (ODS, 13 KB)
• allocations for FE reclassification capital allocation (MS Excel Spreadsheet, 18.9 KB)

Where applicable, payments willwent go to:

• college groups
• designated institutions
• sixth-form colleges

ESFA willsent send grant agreement letters in March 2023. IfPayments youwere returnmade thesein by 3 April 2023,2023 weas willa makeone-off the payment in April 2023.allocation.

What can you can spend it on

This funding should be spent on capital projects, prioritising condition improvement of the college’s estate.

The funding must be spent between 1 April 2023 and 31 March 2025.

How funding is calculated

The funding is allocated in proportion with the revenue funding your institution received in 2021 to 2022 relative to other colleges that were eligible for this allocation. This included the following revenue funding streams:

• 16 to 19 revenue funding (core programme funding)
• adult education budget (allocated):
  • adult skills
  • community learning
  • National Skills Fund - level 3 offer
  • 19 to 24 traineeships
• apprenticeships carry in
• sixth-form colleges
• 16 to 18 traineeships, including bursary funding
• advanced learning loans bursary
• adult education budget devolved data

We made adjustments so that FE colleges in devolved adult education budget areas receivereceived their full allocation.

Condition Improvement Fund

The Condition Improvement Fund (CIF) is an annual bidding round for eligible academies, sixth-form colleges and voluntary-aided (VA) schools to apply for capital funding.

The priority for the fund is to address significant condition needs, 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

The CIF also supports a small proportion of expansion projects. These are for academies, sixth-form colleges and VA schools rated good or outstanding by Ofsted that can demonstrate a need to expand.

Eligibility is confirmed each year when the new application round opens.

What funding is available

Budgets are confirmed on an annual basis.

The most recent funding round,round for CIF 20222023 to 2023,2024 provided funding of £498£456 million for 1,4051,033 projects at 1,129859 academies, sixth-form colleges and VA schools.

When to apply

The closingapplication datewindow for the 2023 to 2024 CIF application2024 roundto is2025 Wednesdayclosed 7on 14 December 2022. The funding outcomes will be announced in May 2023.

Sign up for Condition Improvement Fund alerts.

PreviouslyPrevious funded projectsallocations

A list of projects funded in CIF 20222023 to 20232024 is available.

FE capital transformation programme

The FE capital transformation programme seeks to upgrade the FE college estate.

What funding is available

The FE capital transformation fund is investing £1.5 billion over 6 yearsyears, ending in March 2026, to upgrade FE college estates. To date, we have:

• given all FE colleges a share of a formulaic allocation of £200 million in autumn 2020 to support them to carry out condition improvement projects
• targeted some of the worst-condition sites in the country, by working in partnership with 16 colleges to deliver their capital projects
• directed funding of approximately £410 million to 60 colleges with 75 projects whichthat were successful in the bidding process
• supported a further 2 conditioncondition-improvement improvement projects in colleges whichthat are involved with ESFA specialist restructuring
• announced that the final stage of the programme will be through a formulaic allocation to eligible furtherFE education colleges and designated institutions

We have published the allocations for the final stage of the FE capital transformation fund.

A list of successful applications at stage 2 of bidding for the FE capital transformation fund is available.

Post-16 capacity fund

The post-16 capacity fund supports post-16 education providers to accommodate demographic increases in learners aged 16 to 19.

What funding is available

The most recent funding round made £140 million available for bidding providers to deliver projects creating additional capacity from September 2024.

When to apply

The application window for the latest funding round closed on 11 November 2022.

Previous allocations

A list of projects that made successful bids for post-16 capacity funding is available.

T Levels capital fund

The T Levels capital fund is available to support providers with a 16 to 19 funding contract delivering T Levels courses with industry placements from September 2023.2024.

What funding is available

WaveThe 5most ofrecent thefunding, Twave Levels5, capitalmade fundover is£100 expectedmillion available to besupport launchedmore inthan autumn100 2022.

Wave 4 of the T LevelsLevel capitalprojects. fund is now closed for applications. We expect to announce successful applicants in July. This waveinvestment iswill worthensure overthat £150T millionLevel andstudents is formed of 2 parts:can:

• alearn buildingin andmodern, facilitiesfit-for-purpose improvementbuildings grant,suitable whichfor providersdelivering needT toLevel bid forqualifications
• aaccess industry-standard specialist equipmentequipment, allocation,which awardedwill tohelp providerspromote usingprogression ainto formulaskilled allocationemployment

TheProviders specialistdelivering equipmenta allocationT isLevel usuallyroute paidfor early in the calendarfirst yeartime in whichSeptember providers2024 firstare delivereligible Tto Levels,receive toa specialist allowequipment themallocation in timewave 5. We expect to procuremake equipment.payments in early 2024.

When to apply

The T Levels capital fund is currently closed for applications. We expect wave 5 to open for applications in autumn 2022.

Sign up for T Levels capital fund alerts to find out when the next stage of the fund is opening.

Previous allocations

A list of the successful applications for T Levels capital fund wave 35 is available.

Higher technical education skills injection fund

The skills injection fund was previously known as the higher technical education growth fund.

The fund will supporthelp providers offer more higher technical qualifications (HTQs).

The higher technical education (HTE) skills injection fund 2 builds on the success of:

• the HTE growth fund, which launched in 2021 and has invested £14.5 million to developsupport HTQs in high-qualityoccupational provisionroutes atfrom levelscycles 1 and 2
• the HTE skills injection fund, which launched in 2022 and has seen over £21 million allocated to support all level 4 and 5,5 HTE qualifications includingin highercycles technical1, qualifications.
  2 and 3

What funding is available

The skillsfund injectionis fundfor willproviders providepreparing additionalto fundingdeliver foracross collegesall and15 universitiesoccupational routes up to investthe in2025 equipmentto and2026 facilitiesacademic thatyear.

The HTE skills willinjection supportfund technical2 studieshas ina keytotal areasbudget suchof as£48.8 digital,million constructionfor the 2023 to 2024 and healthcare.

Up2024 to £322025 millionfinancial ofyears.

When additionalto fundingapply

The willapplication bewindow availablefor throughround 2 of the HTE skills injection fund foris eligiblenow providers.closed.

WhenPrevious to applyallocations

FurtherA informationlist willof follow.successful applicants is available for:

• higher technical education skills injection fund (round 1)
• higher technical education skills injection fund (round 2)

Strategic development fund

The The strategic development fund provides(SDF) provided capitalinvestment andto programmedifferent fundingEnglish toregions supportfor changesthe in2022 localto teaching2023 andfinancial trainingyear facilities(round and2 provision.of the programme).

It supports FEThe SDF provided collegesinvestment acrossto anenable areaareas toacross upgradeEngland to:

• reshape their facilities,teaching equipment and curriculumtraining toprovision
• update better meet the needs of their localfacilities economy in preparation for the rollout of of local skills improvement plans.
  plans (LSIPs)

What funding is available

TheThis fundfunding consistsis no longer available.

Previous allocations

A list of £92the millionsuccessful (£50applicants millionappointed capitalto fundingpilot the SDF and £42LSIPs millionis programmeavailable funding).for:

• 2022 to 2023
• 2021 to 2022

Local skills improvement fund

EachThe arealocal mayskills applyimprovement forfund up(LSIF) is designed to £1.5enable millionFE capitalproviders fundingacross anda £1.25geographic millionarea ofto programmerespond funding.collectively to the priorities in the LSIPs.

WhenWhat tofunding applyis available

TheThe LSIF is strategicavailable developmentacross fund2 isfinancial currently closed for applications.years:

Sign

• £80 upmillion forin strategic2023 developmentto fund2024 alerts(£40 tomillion findrevenue outand when£40 themillion nextcapital)
• £85 stagemillion ofcapital fundingin is2024 opening.

  Previousto allocations

  2025

AThe LSIF builds liston of the successfulSDF, applicantswhich appointedwas topiloted pilotin the2021 strategicto development2022 fund and localrolled skillsout improvementacross plansEngland in 20212022 to 20222023.

When to apply

The LSIF fund is available.currently closed for applications.

Institutes of Technology

Capital investment is to fund new-builds, refurbishments and specialist equipment.

Institutes of Technology are collaborations between FE colleges, universities and employers to offer higherHTE technical education and training at higher skills levels in key science, technology, engineering and mathematics (STEM) sectors such as digital, construction, advanced manufacturing and engineering, where employer demand is greatest.

What funding is available

The government is investing up to £290 million to provide the capital investment required to establish a comprehensive network of Institutes of Technology across England.

When to apply

The fundingapplication window for Institutes of Technology funding is now closed.

Previous allocations

A list of the Institutes of Technology in operation and those currently in development is available.

College capital loans

College capital loans will provide funding to eligible capital projects in the 2023 to 2024 and 2024 to 2025 financial years. These loans will cover funding gaps resulting from commercial borrowing restrictions following the reclassification of the FE sector.

Capital loans are repayable and lending is subject to terms and conditions.

What funding is available

There is no limit to the amount of capital loan you can apply for. You must provide evidence of the level of commercial borrowing you intended to take before 29 November 2022. We will consider projects and loan amounts on a case-by-case basis.

If your application meets the eligibility and assessment criteria, we’ll develop proposed repayment terms for your college.

You must take the loan between 1 June 2023 and 31 March 2025.

When to apply

The application window for college capital loans closed on 31 May 2023.

Funding assistance for building condition issues

FE colleges that require requiring funding assistance to address urgent building condition issues should contact their place-based team in the first instance. This includes issues that either:

• put the safety of your pupils or staff at risk
• threaten the closure of the whole or a significant part of your establishment