Digarbon scheme funding window closes in JuneThe Department for Education has published its allocations under the £184 million post-16 capacity funding programme for 2026 to 2030, with 19 local authorities given the opportunity to increase space for their 16-to-19 provisions, where demand exceeds their current square footage.
This time around, the post-16 programme directs capital funding to mayoral combined authorities, combined county authorities, and a handful of unitary and county councils, rather than to colleges and sixth forms directly. There was no bidding process, with eligibility being demand-led: areas were qualified on the basis that an increase in 16-to-19 learners could not be accommodated in the existing capacity.
What the allocations show
The funding has been split across two tranches. The first £86.98 million was paid to eight strategic authorities in February 2026; this week’s update announced that the remaining £97.09 million will be paid to 11 further authorities this coming Spring 2026.
The largest individual allocations are:
- East Midlands Combined County Authority – £22.05 million.
- West Midlands – £19.92 million.
- Greater Manchester – £11.68 million.
- Lancashire Combined County Authority – £11.55 million.
- Cambridgeshire and Peterborough – £11.17 million.
- North East – £11.07 million.
- Liverpool City Region – £10.94 million.
- South Yorkshire – £10.11 million.
- Greater Lincolnshire Combined County Authority – £9.97 million.
A full list of the 19 recipients and their allocations is set out in the DfE methodology document published alongside the announcement, which explains how each authority’s share was calculated.
How the funding reaches providers
Money now does not flow directly to colleges, sixth-form colleges, or school sixth forms, but sits with the strategic authority, which is then responsible for deploying it into 16-to-19 capacity across its area. A memorandum of understanding between the DfE and each strategic authority sets out the terms.
The big change for providers in those areas is that all discussions about proposed works need to involve the strategic authority rather than the DfE. For providers outside the 19 areas, it’s important to note that the criteria remain critical to securing funding and will continue to be an important factor in future funding rounds.
What this means for school and college estates
This scheme comes at a time when many sixth form and FE colleges are weighing up the condition of their existing buildings. Some will need straightforward extensions, whereas others will be looking at whether underutilised space could be rationalised to release value, fund expansion elsewhere on site, or sharpen an inefficient teaching layout. Decisions made over the next twelve months will shape post-16 provision in these areas for the rest of the decade.
The next thing to watch is how individual strategic authorities communicate their deployment plans, and how quickly providers in line for new capacity move from allocation to specification.
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