New Further Education College Condition Allocation
(Limited Text - Ministerial Extracts only)
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The Parliamentary Under-Secretary of State for Education (Janet Daby)
My noble Friend the Minister of State for Skills (Jacqui Smith), has made the following statement:
The Government’s first priority is economic growth, which requires a strong skills system, ensuring businesses have the expert workforces they need to grow. This Government are clear through their opportunity and growth missions that ensuring a consistent, skilled pipeline of workers is essential to the delivery of the plan for change. We need to ensure young people and adults have the opportunity to access pathways made available through education and learning. This will in turn help to drive productivity and economic growth—giving all people the opportunity to upskill and reskill to meet employer needs, fill skills shortage vacancies, and improve living standards.
Our ambition is a world class further education (FE) system that delivers for the whole nation and supports these missions. A key part of this is ensuring FE colleges are fit for the future—with better facilities and good quality sustainable buildings.
Following the autumn Budget, I am today announcing details of the investment of £302 million of capital funding to improve the condition of the further education college estate in England. An allocation of £302 million will be provided in financial year 2025-26 to all FE colleges and designated institutions in England. The aim of the investment is to ensure the FE estate is high quality and supports our skills pipeline. All FE colleges and designated institutions will receive a share of the £302 million, which will be directly allocated to them.
FE colleges are given the discretion to decide how to invest the funding in condition improvement priorities across their estates in line with guidance which the Department will publish here: https://www.gov.uk/government/publications/further-education-college-capital-allocation-2025-to-2026.
This funding is part of the £6.7 billion capital allocation the Department for Education received at the autumn Budget. This is a 19% real-terms increase from 2024-25, demonstrating the Government’s commitment to protecting education priorities against a tough fiscal context. Of this funding, £950 million is to support our skills system and provision across England in delivering the skills that will drive economic growth. As part of that investment, I am announcing today that further capital funding will be made available in 2025-26 to support capacity for rising numbers of 16 to 19 year olds in Greater Manchester combined authority and Leeds city council, which will each receive £10 million of post-16 capacity funding. This additional capacity will ensure young people continue in their education and training, spreading opportunities across the country.
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