Capital Funding Allocations

Wednesday 19th January 2011 Written Statements

[The Minister of State, Department for Education (Mr Nick Gibb)]

My hon. Friend the Under-Secretary of State with responsibility for schools, Lord Hill of Oareford, has made the following statement:

“Today I am announcing capital funding allocations for 2011-12 to address sixth-form college (SFC) priority building condition needs; SFC devolved formula capital (DFC); and basic-need funding for 16 to 19-year-old student places.

The capital settlement for the Department for Education (DFE) was extremely tight, with a 60% reduction in 2014-15 compared with the historic high of 2010-11. We have therefore had to consider very carefully how the balance of capital funding is allocated in order to ensure that it is targeted to the areas of greatest need.

I know that there are sixth-form colleges with building needs which have missed out on previous capital programmes. I have therefore allocated more than £57 million to address priority building condition needs within the sixth-form college sector.

Even where funding is tight, it is essential that buildings and equipment are properly maintained, to ensure that health and safety standards are met, and to prevent a backlog of decay building up which is very expensive to address. I am therefore also pleased to announce that in 2011-12 all sixth-form colleges will become eligible for devolved formula capital at a rate of £4,000 per college plus £22.50 per student. This means the average allocation to a sixth-form college will be in the region of £40,000. This funding is primarily for planned maintenance and is in addition to the £57 million for building condition needs.

The Government are committed to ensuring that all young people have the opportunity to continue in education and training after the age of 16. I therefore want to ensure that funding is available to meet the need for additional places where there are demographic pressures in schools, academies and sixth-form colleges: £30 million will be made available in the coming financial year for basic need funding for 16 to 19-year-old student places in these institutions.

The YPLA is currently working with officials in my Department on the criteria and process for distributing funds for 2011-12 and we expect to be able to make further details available shortly so that institutions can access funds as soon as possible in the new financial year. We will involve representatives from the sector as we develop the detail of the allocations process.

Capital funding for 2012-13 onwards will take into account the outcome of the review of DFE capital programmes, which the Secretary of State for Education has commissioned, and which is expected to report shortly.”