Urgent Capital Support: the key points

The Department for Education (DfE) published updated guidance back in June 2025 on Urgent Capital Support (UCS). This guidance outlines important changes that schools, academies, and sixth-form colleges need to be aware of when applying for emergency capital funding.  We thought it was probably worthwhile reminding schools about the update, now that the school holidays are over and the new academic year has kicked in. Please see our Q&A below.

What is Urgent Capital Support (UCS)?

UCS is a funding mechanism designed to help:

• academies;
• sixth-form colleges; and
• voluntary Aided (VA) schools that do not receive School Condition Allocation (SCA) and are facing urgent building-related issues that may result in the closure of all or part of their site.

In short – UCS is for emergencies that cannot wait for the next round of the Condition Improvement Fund (CIF). It is not intended for planned maintenance or long-term capital improvement projects.

What are the key points in the Urgent Capital Support guidance?

• Funding is typically provided as a loan, with grants available only in exceptional cases (but we are aware of blended projects).
• Applications can be submitted at any point during the year.
• Institutions must show that the issue presents a real and immediate threat to health, safety, or educational continuity.

What’s new in the guidance?

The core purpose of UCS remains the same, but the 2025 update introduces a more structured and rigorous framework. Key changes:

Introduction of defined categories (A–G)

Applicants must now classify their urgent issue under one of the following categories:

• Structural failure
• Asbestos risks
• Electrical faults
• Fire protection issues
• Other critical safety threats

Sustainability requirements

Applicants must show alignment with the government’s net-zero goals, referencing:

• The Output Specification 2022; and
• environmental impact considerations.

Stricter financial scrutiny

• Applications must now include a detailed financial commentary.
• Evidence of reserve levels and funding commitments is required.

Loan-first model

• The default funding method is a loan.
• Grant funding is reserved for only the most exceptional circumstances .

Post-approval monitoring

• Approved projects must submit monthly progress updates.
• Completion documentation is now mandatory to avoid clawback.

Are you eligible for UCS?

To be eligible, you must:

• Not receive School Condition Allocation (SCA)
• Be facing an urgent condition issue that poses a risk to safety or continuity
• Demonstrate that the issue cannot wait for CIF
• Have a clear understanding of your organisation’s financial position and ability to fund a loan

What do I need to show in my application?

Your application must include the following:

• An independent condition report
• Supporting evidence of suitability issues
• A financial health assessment
• A project funding template
• A feasibility study, if applicable

Final thoughts

The 2025 UCS guidance raises the bar for emergency capital funding. Schools and trusts must be well-prepared, evidence-led, and financially clear when applying linking it clearly to the requirements of the Guidance.  It seems that aligning with sustainability goals and meeting new reporting standards will be critical to a successful bid.

Ciara Campfield is a partner and Head of Business and Social Enterprise at Stone King.