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April 2, 2025
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£302m Boost for FE Colleges

For the first time, the government is allowing colleges full discretion on how they allocate the funding, giving them the flexibility to prioritise their most pressing needs

Further education colleges across England are set to receive a share of £302 million to repair and improve their buildings, as part of the government’s Plan for Change. The funding will help fix leaky roofs, broken windows, and outdated facilities, ensuring colleges can continue to provide high-quality education and training.
The money, first revealed in the Chancellor’s October Budget, marks the first condition allocation for further education colleges in two years. It underscores the government’s commitment to strengthening the education sector and boosting economic growth by maintaining and upgrading learning environments.
This investment is aimed at creating a more attractive and functional space for students and staff alike, supporting colleges in their mission to upskill the workforce and provide essential vocational training.
For the first time, the government is allowing colleges full discretion on how they allocate the funding, giving them the flexibility to prioritise their most pressing needs. This approach acknowledges that individual institutions are best placed to assess their own requirements and make improvements that will have the greatest impact.
A Step Towards Economic Growth
Skills Minister Jacqui Smith highlighted the significance of the funding, stating:
“Further education colleges are at the heart of our mission to grow the economy and train the next generation of skilled workers under our Plan for Change. But the college estate we inherited is simply not fit for purpose. Today’s funding addresses these issues, allowing colleges to focus on what they do best: breaking down barriers to opportunity and inspiring the workforce of the future.”

“As well as modernising our facilities, the project significantly improved our energy efficiency, cutting costs by 40% and making a major step forward in our carbon reduction edits.”
-Andrew Harrison, Vice Principal at Calderdale College

Boost for Greater Manchester and Leeds
In addition to the national funding allocation, colleges in Greater Manchester and Leeds will benefit from an extra £20 million in capacity funding for 16- to 19-year-olds. This funding will address a shortage of places and ensure that more young people can access crucial skills training.
One of the institutions set to benefit is Calderdale College in West Yorkshire, which will use the investment to expand its construction and professional trades workshops. The funding will also support the development of additional classroom space within Mill Studios, the college’s digital and creative centre. Andrew Harrison, Vice Principal for Corporate Services at Calderdale College, welcomed the funding:

“We welcome this investment from the government’s Autumn Budget, which will enable us to further enhance the experience for our students. This follows the success of our recent £7.5 million transformation project, completed in August 2024, which focused on refurbishing our ageing estate. “As well as modernising our facilities, the project significantly improved our energy efficiency, cutting costs by 40% and making a major step forward in our carbon reduction efforts.”

Further Investment in Technical Training
This funding forms part of a broader £625 million investment in post-16 education, aimed at training up to 60,000 more engineers, electricians, and builders by 2029. As part of this initiative, the government has committed £100 million to establish ten new Technical Excellence Colleges, further strengthening the UK’s vocational education system.
The government is also making changes to apprenticeship programmes, with new shorter apprenticeships and modifications to English and maths requirements. These changes are expected to help up to 10,000 more apprentices qualify each year in key industries.
In addition, new Construction Skills Hubs, funded by industry, will speed up the training of workers vital to the government’s homebuilding drive.
With this latest investment, the government aims to ensure that further education colleges remain a cornerstone of skills development, economic growth, and career opportunities for young people across England.

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