Capital funding for financial year 2025 to 2026

Capital funding allocations and outcomes for financial year 2025-26

November 2025

This document provides the outcomes for the distribution of capital grant by the OfS for the financial year (April to March) 2025-26. It follows a competitive bidding exercise (see below) that was held between 12 June and 30 July 2025 where eligible higher education providers submitted proposals for assessment. The process was completed in October 2025.

This document and supporting information set out the allocations we have made to eligible providers, both through project and formula funding as a result of the process set out in the arrangements document below.

We are providing capital funding through two mechanisms:

Bidding exercise

• £80.8 million through a single bidding exercise, with capital monies to be distributed and spent by March 2026. The competition was open to all providers that were registered in the Approved (fee cap) category. We received 193 bids, requesting £288 million.
• We initially decided to distribute £72.75 million through the bidding process. In October 2025 we also received an additional £8.1 million as part of the Engineering Skills Package from the Department for Energy Security and Net Zero, to support projects focused on skills and training for clean energy industries. This meant we could support other additional projects through the bidding process.

Formula funding - £7.75 million through formula funding.

There is also £3.5 million for Jisc, which we confirmed in June 2025.

Overall, we are able to provide approximately £92 million in capital funding for this financial year.

Arrangements for the distribution by the OfS of capital grant for 2025-26

June 2025

This document set out how we initially intended to distribute capital grant for the financial year (April to March) 2025-26 and the process for bidding for funding. The deadline for submitting capital bids to us was 30 July 2025.

Since this document was published, we received additional capital funding as part of the Engineering Skills Package from the Department for Energy Security and Net Zero, to support projects focused on skills and training for clean energy industries. This meant we could support other additional projects through the bidding process.