DfE updates school capital funding guidance for 2026–27

The Department for Education has updated its school capital funding guidance, confirming the framework for the 2026–27 financial year.

While this is not a new funding announcement, it provides the latest confirmed position on how capital is allocated and accessed.

What’s been confirmed

• Schools will continue to access capital through three main routes:
  • School Condition Allocations (SCA) for larger Trusts and local authorities.
  • Condition Improvement Fund (CIF) for smaller Trusts and eligible bodies.
  • Devolved Formula Capital (DFC) for individual institutions.
• Eligibility thresholds for SCA remain based on size (5+ schools) and pupil numbers (3,000+).
• Updated methodology and guidance set out how allocations are calculated and what funding can be spent on.

Why this matters for Trusts

This update confirms several important points for MAT (Multi-Academy Trust) leaders:

• Planning assumptions are now fixed for 2026–27.
  Trusts can proceed with greater certainty on expected capital routes and constraints.
• Continued pressure on CIF.
  Smaller Trusts should expect continued competition for CIF funding, reinforcing the importance of strong, evidence-based bids.
• Scale remains a strategic advantage.
  Larger MATs eligible for SCA retain greater control and flexibility over estate investment decisions.
• Alignment with wider estates strategy.
  The guidance sits alongside the DfE’s broader shift towards more strategic, data-driven estate management.

Actions for CEOs and CFOs

We recommend Trusts:

1. Stress-test your capital pipeline.
   Check priority projects are aligned to eligible funding routes (SCA vs CIF vs DFC).
2. Review growth and structure plans.
   Consider whether your current scale supports optimal access to capital funding.
3. Strengthen your estates strategy and evidence base.
   Clear condition data and prioritisation will be critical—particularly for CIF bids and DfE engagement.

At Stone King, we are fortunate to have a widely skilled Education Team, who can help with all manner of education related queries. Get in touch today to find out how we can help your organisation.