Several schools have been told by the Department for Education that building repair funding they had won approval for will now be put on hold, Tes has learned.
An academy trust that had two bids for Condition Improvement Fund (CIF) cash approved in March this year has now been told by the DfE that this funding has been put on hold while a “due diligence process” is carried out.
The trust, which preferred not to be named, said the call came from the DfE today - just days before contracted work was due to begin on its school site.
Staff said contractors has been lined up to start work on their projects this weekend. These projects were said to be fully funded by CIF money totalling hundreds of thousands of pounds.
Tes understands that several other academy trusts have received similar calls from the DfE’s capital team.
The Confederation of School Trusts (CST) said that it was aware the issue had affected several trusts and has raised concerns at “the highest levels of the DfE”.
School told to ‘get legal advice’ on building work
An executive at the trust that did not want to be named said: “We’re waiting for confirmation to see if the contractors have already bought the materials and therefore have made a financial commitment.
“I asked the person I spoke to over the phone [at the DfE] what I should do if they have made a financial commitment and he said, ‘I suggest you get legal advice.’”
The trust executive told Tes they asked the DfE if it would be contacting the third-party company that wrote the bid for the trust, and were told that it would not.
Academy funding consultant Tim Warneford told Tes: “I have been contacted by several fellow consultants whose schools have received similar phone calls from the DfE telling them the release of their funding has been put on hold.
“This has left those academies who had had accepted the terms and conditions of their CIF award, and who had subsequently entered into contracts with appointed contractors, feeling very vulnerable, especially where surveys and works have commenced or were due to start during next week’s half-term.”
A spokesperson for the CST said: “The CST has heard from several trusts that the timing of these decisions to put CIF funding on hold is causing them significant issues, including some projects where work was scheduled to start in just a few days’ time. This work had already been approved and trusts need urgent details on the reasons for this change.
“We have raised these concerns at the highest levels within the DfE and will continue pressing them for a swift resolution so trusts can get on with this desperately needed work, and for reassurance that trusts will not be left out of pocket through no fault of their own.”
A consultant at a company that puts CIF bids together for trusts said “quite a few clients” had contacted the company having received calls from the DfE - though not all of the trusts it had bid for.
“They are being told this is an additional due diligence step,” the consultant said.
He added that some school trusts are being asked how far along they are in terms of the process and to send details to the DfE about what work they have committed to having done through CIF funding.
The consultant added that some of the company’s clients had been told they would receive a letter tomorrow with further details.
“They’re being told any costs that have been incurred will be covered but they should stop anything further.”
He added that some clients had reported now being told to apply to the Urgent Capital Fund if they have work that needs to be done urgently.
Mr Warneford said one of his clients has been told by the DfE that its funding is still proceeding.
A Department for Education spokesperson said: “Where the department requires further information about an application or delivery of a project, the department may put projects on hold whilst further due diligence is conducted.
“We are in touch with the affected responsible bodies to discuss next steps and will provide a further update to them by the end of June.”
The DfE declined to say how many bids have been put on hold.
The Condition Improvement Fund
CIF is a pot of money for capital works that smaller academy trusts, voluntary aided bodies and colleges are able to bid for.
The DfE publishes a list of successful projects each year. Projects approved range from urgent roof repairs and electricity works to asbestos removal and boiler replacement.
For 2024-25, 866 projects were successful across 733 schools and colleges. This was a 16 per cent reduction on the number of projects funded the year before.
The number of projects in 2023-24 was also less than the number the year before, which funding consultants said was “devastating”.
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