CIF 2026–27 outcome: better news, but the bigger picture remains unchanged

Last week, the Department for Education (DfE) announced the outcome of the 2026–27 Condition Improvement Fund (CIF), allocating £450 million across 813 projects at 684 eligible institutions.

Top-line results appear encouraging. Successful schools increased by 3% year-on-year, while successful projects rose by 4%, the first increase in total successes since 2020–21 and a welcome pause following years of declining success rates.

For schools that applied, 40% secured funding compared to 35% last year, while project success rates increased from 28% to 32%.

Unsurprisingly, much of the immediate coverage has focused on these positive headline statistics. And while these figures represent an improvement on recent years, the wider picture is more nuanced: this was a better year, but not a fundamentally different one.

Despite more schools and projects receiving support, total CIF funding fell by 3% compared to last year. With overall condition funding remaining relatively flat (total School Condition Allocation increased by 3% year-on-year) and the number of CIF-eligible institutions shrinking by 5%, the longer-term trend of declining CIF funding has resumed.

This trend is unlikely to reverse. The Government’s schools white paper outlined an expectation that all schools will eventually move into strong trusts, suggesting the shift away from CIF eligibility towards larger multi-academy trusts receiving formula-based capital allocations will continue.

Overall project costs remain high

2026-27 funding levels are similar to those seen in 2023–24 in cash terms. However, 27% more projects received capital support in 2023–24 than this year, a reminder of how inflationary pressures have impacted delivery costs over the past three years.

Last year’s sharp reduction in successful projects was partly driven by average project costs increasing by nearly 20%. While costs have reduced, they have only done so by around 3%, remaining 15% higher than average project costs in 2024–25.

The fact that more schools and projects received funding this year, despite relatively high project costs and a smaller overall funding pot, suggests other factors are contributing to the increase in beneficiaries.

Our deeper analysis, coming soon, will explore whether regional variations and shifts in the types of successful projects are helping drive this more positive overall picture.

The reality of CIF competition remains unchanged

Although outcomes have improved, the overall nature of CIF remains highly competitive, continuing to prioritise urgent condition need over preventative maintenance.

This year’s successful schools represent just 17% of the 3,925 eligible institutions (up from 16% last year), leaving 83% without significant capital funding to maintain their buildings.

Projects addressing critical health and safety risks or major building condition failures continue to be prioritised ahead of more proactive, preventative maintenance works. For responsible bodies seeking to take a strategic, planned approach to estate management, this remains a persistent challenge.

Preparing for change: what comes next for CIF-eligible institutions

The DfE has acknowledged the limitations of the current funding model for CIF-eligible institutions and committed to reform.

The DfE’s Education Estate Strategy, published in March, sets out an ambition to enable responsible bodies to take a more proactive and strategic approach to estate management, prioritising long-term maintenance, renewal, resilience and risk.

Importantly, it acknowledges the limitations of the current urgent-need model and outlines plans to replace the existing CIF programme from Autumn 2028, supported by improved estate data collection and potentially removing the requirement for full bid submissions.

While further detail is still awaited, the proposed timeline suggests there may be one further round of CIF in its current form for 2027–28 before reforms take effect.

What education estates teams should be doing now

We are entering an important period of transition. While uncertainty remains around future reforms, there are practical steps institutions can take immediately.

The strongest position for any CIF-eligible responsible body is to align with the overall direction set out in the DfE’s Education Estate Strategy by developing a more strategic understanding of estate need.

This means:

  • undertaking robust condition surveys;

  • improving understanding of building capacity and space utilisation;

  • identifying opportunities to improve thermal performance and energy efficiency;

  • developing long-term capital priorities based on condition, risk and resilience.

Regardless of how condition funding evolves, organisations with a clearer evidence base and a stronger strategic estate plan will be best placed to respond.

How we can help

Our team of education estate and energy specialists has supported clients in securing CIF funding since the programme’s inception.

We have continually evolved alongside changing DfE requirements, helping clients strengthen applications and improve competitiveness in an increasingly challenging funding environment.

Underpinned by sector analysis and deep education estate expertise, we help responsible bodies understand not just today’s funding landscape, but what comes next, ensuring clients remain ahead of emerging opportunities, policy changes and estate priorities.

For responsible bodies looking to respond proactively to the DfE’s Education Estate Strategy, we have created an eBook summarising the key priorities and practical actions institutions can take now. You can download it here.