What is Devolved Formula Capital?

The Department for Education allocates funding each year to help maintain and improve the condition of school buildings and grounds.

In any given financial year, eligible schools can access funding through either:

  • School Condition Allocations, allocated automatically to multi-academy trusts (MATs) with at least five schools and 3,000 pupils

  • the Condition Improvement Fund, a bidding round with funds paid directly to single academy trusts, small MATs, small voluntary aided (VA) bodies and sixth-form colleges.

What is Devolved Formula Capital for?

In addition, Devolved Formula Capital (DFC) is allocated for individual schools and other eligible institutions to spend on capital projects that meet their own priorities.

DFC is direct funding for individual institutions to maintain their buildings and fund other small-scale capital projects.

Who gets Devolved Formula Capital?

It is allocated to maintained nursery, primary and secondary schools, special schools, pupil referral units, academies and free schools, non-maintained special schools, general hospital schools and sixth-form colleges. It is also allocated to those specialist post-16 institutions that have eligible state-funded pupils.

What can Devolved Formula Capital be spent on?

It provides schools with capital funding to spend according to their needs. DFC money can be used for:

  • building improvements

  • facilities improvements, including ICT

  • capital repairs and refurbishment

  • minor works

How much is Devolved Formula Capital worth?

Each institution gets a fixed sum of £4,000 and a variable amount based on their pupil numbers multiplied by the appropriate weighting per pupil, which is based on the age-phase and type of pupils – primary, secondary, sixth form, special school and boarding pupils have different weightings reflecting relative capital costs of their provision.

How is Devolved Formula Capital calculated?

The allocations are calculated afresh each year to reflect latest pupil numbers.

For example in 2022-23:

  • A school with 50 primary pupils and 500 secondary pupils would have phase-weighted pupils of (50 x 1) + (500 x 1.5) = 800

  • The number of phase-weighted pupils is multiplied by the per-pupil rate of £11.25

  • So the school would receive 800 x £11.25 = £9,000, in addition to the lump sum of £4,000

  • The total DFC allocation would be £13,000.

How is Devolved Formula Capital paid?

Local authorities receive the DFC payments for their maintained schools and are required to pass on these allocations to the schools. Academy trusts, VA bodies and other institutions receive their DFC from the DfE. Local authorities may receive a DFC payment for maintained schools that have recently converted to academies; they are required to pass this on to schools in the usual way, regardless of conversion status.

Who can advise on Devolved Formula Capital projects?

As qualified quantity surveyors specialising in education, Surveyors for Education (S2e) are in the perfect position to help schools, academies and MATs prioritise spending on building improvements. Contact us on tel: 0116 5070130 or email enquire@s2e.org.uk.

Adam RichardsSurveyors to EducationFunding, Devolved Formula Capital