Key changes and announcements in 2025: S2e’s reflections
As we approach the end of 2025, we take a moment to reflect on the key announcements and changes that have, or will, affect the education estate.
Legal Changes:
1. Procurement Act 2023
The new Procurement Act came into force on 24th February 2025 bringing in significant changes to public sector procurement. Its overall aim is to bring about a more flexible, strategic approach.
Why it is it important?
While the education sector is exempt from some of the reporting requirements, the act requires changes in procurement practices for capital projects for schools and colleges over certain procurement thresholds.
2. Martyn’s Law
Also known as The Terrorism (Protection of Premises Act 2025) came into law in April 2025 and is expected to come into force in 2027. It is designed to improve security in public venues and will affect all public premises holding over 200 individuals.
Why is it important?
All settings within scope of the legislation, including schools, will need to have in place public protection procedures. This includes evacuation (to get people out of the premises), invacuation (to move people to a safe place), lockdown (to secure premises against attackers) and communication (to alert people on premises to the danger).
Funding announcements
1. UK Infrastructure: A 10-Year Plan
In June, HM Treasury set out £725 billion of investment over the next decade, intended to drive a coordinated approach to infrastructure delivery across all public sectors and the private sector, with a particular focus on maintenance.
Why is it important?
The strategy commits to £38 billion in education capital spending between 2025–26 and 2029–30 and includes all currently planned capital projects to be government-funded up to 2034–35. Maintenance funding for schools is set to increase to nearly £2.9 billion by 2034–35. It remains unclear whether responsible bodies will benefit from long-term budget setting with multi-year maintenance allocations; further clarity is expected when the Department for Education (DfE) releases an estate strategy aligned with the Infrastructure Strategy next year.
2. The School Rebuilding Programme (SRP) is to be expanded
The Infrastructure Strategy confirmed that the DfE intends to expand the existing SRP to include a further 250 schools, bringing the total to 750 schools benefiting from the programme up to 2035. The DfE is currently tendering for an updated contractor framework, with further details on school selection expected next year.
Why is it important?
Although proactive maintenance is said to be a priority for this government, the SRP expansion will receive £20 billion of the total £38 billion committed, supporting the rebuilding of just 3.5% of schools.
3. Decarbonisation funding cancelled
The cancellation of the Low Carbon Skills Fund (LCSF) in May, followed by the Public Sector Decarbonisation Scheme (PSDS) in June, leaves significant questions about how decarbonisation of the school and wider public estate will be funded.
Why is it important?
We end 2025 with an even greater gap in decarbonisation funding. While securing funding through the two cancelled schemes had become increasingly challenging, they nonetheless represented a pathway, and an intention, towards decarbonising the public estate. In their place, the newly formed Great British Energy has pledged to install solar panels on 200 schools. The shift in policy at the Department for Energy Security and Net Zero (DESNEZ) reflects the new government’s ambition to become a clean-energy superpower. Despite these changes, it has reaffirmed the UK’s legally binding commitment to reach net zero by 2050 and still expects all schools to publish Climate Action Plans by the end of this year. Future funding may come through Public–Private Partnerships (PPPs), which the government has suggested could play a role in decarbonisation initiatives going forward.
4. Early Years Focus
A commitment of £370 million has been announced for the School-Based Nursery Capital Grant (SBN) to help primary and maintained nursery schools expand or create new nursery places. Applications for Phase 2 close this month, while details of an expanded Phase 3 are expected next year.
Why is it important?
The SBN capital grant forms part of the government’s broader focus on early years, which also includes expanded childcare funding and the introduction of breakfast clubs. Schools interested in opening an SBN but yet to apply should be aware that Phase 3 is expected to be delivered via local authorities, making early engagement essential.
5. Post-16 and Skills
The Industrial Strategy and the Post-16 and Skills White Paper introduced significant changes and funding commitments. These include £100 million for 10 technical excellence colleges, £375 million to support post-16 capacity and £1.7 billion for FE colleges to maintain the condition of their estates.
Why is it important?
After years of disruption following the reclassification of colleges back into the public sector and the conclusion of many capital schemes previously available, these announcements offer longer-term clarity for estate investment. Whether the scale of funding is sufficient remains to be seen and the exploration of local-authority-backed loans may indicate otherwise.
New guidance and policy
The School Estate Management Standards
New guidance released in April provides greater clarity on the strategic expectations for schools in managing their estates. The standards are intended to complement existing guidance, such as Good Estate Management for Schools, by setting out a defined set of actions that schools should take.
Why is it important?
The guidance offers a clearer, more actionable framework for responsible bodies, supporting more consistent estate management practices and helping schools prioritise investment, compliance, and long-term planning.
Structural assessments and investigations
Published on the 11th December, this guidance sets out the statutory requirement for responsible bodies to ensure their buildings are structurally safe and provides an overview of when and how to appoint a structural engineer.
Why is it important?
The guidance indicates that responsibility, and the funding to carry out structural assessments, will remain solely with responsible bodies. We will be reflecting further on this guidance to assess implications and actions for schools, colleges and trusts and will provide an update in the new year.
Final thoughts
It has been a year of contradictions: much has been announced, yet the lived reality for much of the education estate has remained unchanged. Annual maintenance budgets have increased, but not enough to deliver meaningful impact for most. The SRP will be extended, but only a small proportion of schools will benefit. And while government-wide strategies have been released, they offer little indication of a material shift in approach for school and college estates.
Perhaps more is still to come. The anticipated White Paper is due early next year. We await the DfE’s estate strategy. Research into older school buildings is expected, and the Condition Data Collection 2 will conclude. Will there finally be clarity on decarbonisation funding?
We can leave these questions for 2026. For now, we wish you a restful break and a happy new year.
