Colleges have been handed an extra £5 million to fix crumbling buildings, but one in three will receive less money than last year.
The Department for Education has allocated £307 million to 175 colleges to fix leaking roofs, broken windows and worn-out facilities.
The 1.6 per cent increase follows a £302 million allocation last year, which was the first condition allocation in two years.
DfE said the £5 million funding boost is part of a £1.7 billion investment from the government’s industrial strategy to modernise college buildings by 2030.
Large college groups such as NCG and Capital City College each received more than £7 million for 2026-27, while smaller institutions were allocated as low as £7,000 (see the full allocations list).
Colleges will be given the flexibility to decide how the funding is spent, so it can be directed where it is needed most.
Julian Gravatt, deputy chief executive of the Association of Colleges, said: “This funding for college estates is sorely needed.
“However, while funding for building and site maintenance is important, what colleges desperately need is adequate funding for the increasing numbers of students wanting to enrol.”
FE colleges have been reeling from the lowest 16-19 funding rate rise in years – a 0.5 per cent increase equating to a real-terms cut – announced earlier this month.
Jo Grady, UCU general secretary, said: “New shiny buildings full of students need teachers to impart the skills and qualifications the government promised it would deliver.
“Colleges desperately need money for staff, not just for buildings.”
Funding allocations squeezed for some
DfE said this year’s funding methodology mirrored last year’s. Allocations have been based on learning hours delivered in 2024-25, space requirements for each subject, modelled non-teaching space, residential space, local construction costs and total expected space.
While the methodology does include apprenticeship delivery, it excludes learning aims such as distance learning, higher education, T Level occupational specialisms, skills bootcamps or end-point assessments.
Spending guidance confirmed colleges have the “discretion” to improve campus buildings and grounds as they wish.
But the grants cannot fund IT software and equipment or be used to expand their premises or purchase land.
FE colleges are only able to invest in a building that is owned by their FE corporation by freehold or under a long-term lease, as a minimum of 25 years, at a peppercorn or nominal rent.
Fircroft College of Adult Education saw the biggest percentage increase in funding this year, 283 per cent. It will receive £160,731, four times more than its £41,960 allocation last year.
Big winners also included City Lit, whose 26 per cent allocation rise saw its grant increase by over £200,000 to just over £1 million.
Allocations data showed 43 smaller institutions, such as Capel Manor College and Craven College, will receive less than £1 million each.
Around one-third of the 175 colleges receiving funding saw a drop in year-on-year funding.
The largest decrease was at West Nottinghamshire College, which will receive nearly £2.3 million in 2026-27, over half a million pounds less than the £2.8 million awarded last year.
Ruskin College will see its allocation drop 29 per cent this year to £21,911.
The smallest allocation in the country again went to The Marine Society College of the Sea, which received just under £7,000.
Cheshire College South & West used its allocation last year to improve its ventilation systems, its Crewe campus reception and decarbonisation initiatives on all of its campuses.
This year, it will receive £60,000 less than its £2.2 million grant award last year.
Helen Nellist, deputy principal of Cheshire College South & West, said: “The redesign of our reception area has strengthened the safeguarding of learners by improving visibility and access control, and we’ve also been able to refurbish key facilities such as toilets and changing rooms.
“Additional upgrades to lighting, energy efficiency and ventilation have improved safety, comfort and sustainability.
“This investment is making a real difference for our learners, staff and visitors.”
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