National college capacity funding & new DfE estates strategy – the best capital funding opportunity for some time?

The Department for Education (DfE) has opened applications for new post‑16 and construction capacity funding, launched alongside its wider Education Estates Strategy, described as a “decade of national renewal”. 

The government has allocated £570 million for post‑16 capital investment between 2026-27 and 2029-30, covering both general capacity expansion and construction skills-focused facilities. Of this, £287 million is now available for bids from colleges, designated institutions, and 16-19 academies. 

Alongside this, the DfE has published a new national estates strategy that introduces an additional £710 million renewal and retrofit programme running from 2026 to 2030. The new strategy is aimed at giving colleges long‑term certainty, improving building condition, and reducing reliance on competitive bidding by increasing data-sharing and clearer planning cycles. Education Secretary Bridget Phillipson emphasised that the strategy aims to end the cycle of “patch and mend” repairs, reiterating that safe, modern, accessible environments are essential to breaking down barriers to opportunity and supporting learners to thrive. 

The sector is under increasing pressure due to demographic change: the population of 16–18‑year‑olds has already risen by 230,000 (13%) from 2017 to 2024 and is expected to grow by another 110,000 by 2028. This rising demand has left many colleges struggling for space, with some having to turn students away in high‑demand areas such as construction. 

Sector leaders have welcomed the funding. Julian Gravatt, Deputy Chief Executive at the Association of Colleges, stated that the £570 million package will help colleges expand facilities and deliver more courses aligned to workforce needs. Guidance released by the DfE sets out expectations for bidding on £191 million in post‑16 capacity funding and £96 million in construction skills capacity funding. Bids may range from £250,000 to £5 million, with scope for higher amounts where evidence justifies need.

If you're a college leader, estates professional, or strategic planner, now is the time to act. The funding window is open, demand is rising, and long‑term capital certainty is finally within reach. If you’d like support interpreting the strategy, assessing your estate, or preparing a competitive funding bid, get in touch, I’d be happy to help you navigate the opportunity.