Funding pressures in education: The cost challenge we can’t ignore

While funding streams exist, from the School Rebuilding Programme and School Condition Allocations to targeted support via the Condition Improvement Fund, Salix Finance, and the Public Sector Decarbonisation Scheme, schools frequently tell us the same story: navigating these opportunities is complex, competitive, and uncertain.

What the industry is telling us

Our recent research revealed:

• 55% of respondents see access to central or local funding as the single biggest barrier to regenerating education estates.
• 35% of respondents believe long-term funding and maintenance planning is the most important factor in futureproofing estates.
• Delays caused by unclear or unsuccessful funding bids are leaving schools exposed to escalating repair costs and rising inflation.

This shows the scale of the challenge: schools are not only battling higher costs but also struggling with the complexity and unpredictability of funding pathways.

Ageing estates, net zero and the cost conundrum

Across the UK, many school buildings are operating well beyond their design life. The emergence of RAAC has made the risks of neglect impossible to ignore, yet many estates issues remain hidden until they become urgent and costly. Reactive spending often drains limited resources, diverting attention from strategic renewal.

Overlaying this, schools are expected to decarbonise their estates and move towards net zero. Funding is available through schemes such as Salix and the Public Sector Decarbonisation Scheme. For many schools, the immediate cost of compliance feels at odds with long-term carbon reduction obligations.

The result is a growing tension: leaders must juggle short-term safety and operational needs with longer-term sustainability ambitions, all within increasingly constrained financial frameworks.

Funding stream opportunities

Several national programmes exist to help schools and trusts improve their estates, including:

• The School Rebuilding Programme continues to deliver modern, energy-efficient facilities where condition is poorest, while School Condition Allocations offer regular investment that larger MATs and local authorities can plan around.
• The Condition Improvement Fund gives academies and sixth form colleges a competitive route to address pressing issues and support growth.
• Decarbonisation is also being supported through initiatives such as Salix Finance and the Public Sector Decarbonisation Scheme.

Taken together, these streams create valuable opportunities for schools to address critical safety concerns, upgrade their estates, and progress towards net zero. Yet the complexity of criteria, the competitiveness of bids, and the unpredictability of timelines mean many schools are left uncertain about how to proceed.

The need for understanding estates

This is where specialist expertise makes the difference. At Pick Everard, our cost consultants work closely with schools and trusts to ensure every pound is accounted for and invested wisely. From early feasibility through to project delivery, we help leaders:

• Assess realistic costs at the outset and avoid hidden risks.
• Test retrofit versus rebuild options to find the most cost-effective route.
• Identify where lifecycle planning can reduce long-term spend.
• Maximise the value of funding awards by phasing works strategically.
• Delivering value for money against the department for education’s requirements.

By combining technical cost expertise with a detailed understanding of education funding streams, we help schools achieve more with the resources they have.

Funding pressures in education are not new, but they are now more complex and acute than ever. Schools face a perfect storm of ageing estates, RAAC risks, net zero obligations, and rising costs, all while navigating a fragmented and uncertain funding landscape.

At Pick Everard, we work with trusts, schools and colleges to untangle these challenges, providing the clarity, evidence, and technical expertise needed to secure funding and make budgets go further.

Speak to our education specialists today.