Infrastructure delivery

Guidance and support for school capital funding, building works and maintenance.

Devolved Formula Capital (DFC) Grant

DFC provides capital funding to allow schools to prioritise its buildings and grounds needs and provide investment in capital equipment including ICT. ​​

The DFC Grant for community, foundation and voluntary controlled schools is calculated by a DfE formula.

Each school has 3 years to spend each year's allocation and allocations must be spent or committed to a project by the 31st of March of the third year.​

Schools can only draw down allocations up to and including the current financial year allocation.

To review previous yearly allocations use the following downloads:

Eligibility criteria

All DFC capital expenditure amounts must exceed £2,000 per project.

It’s defined as funding spent by schools creating, enhancing or maintaining fixed assets such as buildings (within the school estate) and (fixed) equipment.

The main projects DFC can be used for include the following 

  • capital equipment - including ICT
  • long-term school estate improvement - including capital improvements, repairs, refurbishment, replacements and upgrades
  • structural improvements to buildings - including fixtures and fittings

These are investments that increase the value of school assets and directly benefit schools and the education of pupils.

Schools undertake capital i​improvements when they want to do any of the following:

  • increase an asset's useful function or capacity
  • perform a required extension of ‘useful life’
  • enhance the quality of services
  • reduce future operating costs
  • upgrade essential parts of an asset

Disqualification criteria

DFC must not be used for the following:

  • any expenditure below the minimum capital spend of £2,000
  • loose furniture
  • operating leases for equipment, ICT (including websites and warranties) or facilities*
  • purchase of small value items - including books, training materials, and services
  • routine repairs, redecoration, or maintenance included in delegated schools' budgets - these fall under 'repairs and maintenance' in operational budgets
  • temporary accommodation hire - unless this can be legitimately capitalised as part of building costs. For example, where it’s part of a larger project with a short-term requirement to re-house classes

*Finance leases may be capital but costs count as borrowing which requires Secretary of State approval which is seldom given.

Apply for DFC

It’s a school’s responsibility to seek and appoint appropriate professional advice when developing and implementing their proposals.

This is to make sure schemes and projects comply with all relevant building regulations, planning, and health and safety legislation. 

Before applying, schools should download and refer to our Checklist for school-building projects (Word, 49.4KB).

They then need to complete our DFC1 Notification of Proposed Expenditure form which confirms the following:

  • proposed schemes
  • proposed costs
  • proposed project programme dates
  • when the DFC grant will be spent

Schools should allow a minimum of 2 months for the review and release of the DFC Grant following the issue of your completed DFC1 Notification of Proposed Expenditure.

To apply for DFC download, complete and follow the instructions on our DFC1 Notification of Proposed Expenditure form (Word, 36.5KB). 

DFC3 Year-End Return Form

Schools must maintain proper records of programme plans, project works and expenditures as this needs to be reconciled against their DFC Grant.

The financial year runs from 1 April to 31 March with schools required to download and complete a DFC3 Grant year-end form (formerly known as the Form FCG3) each year.

The DFC3 form includes the following details:

  • any DFC brought forward balances and unspent grant
  • the current year's DFC allocation
  • the DFC Grant approved and received
  • the amount of the DFC Grant expended
  • the amount of the unspent DFC Grant held at the year-end
  • the balance of DFC Grant to be carried forward​

For more information about this requirement and bank account schools, download our DFC3 letter​ (PDF, 186KB)​.

Schools must keep records of all DFC allocations and expenditures including the following:

  • DFC from previous years brought forward
  • any unspent grant already transferred to the school and expenditure

​Schools must be aware of their current grant balances so they can accurately report their actual total expenditure at the end of the year through the DFC3 form and comply with ECC’s annual closure of accounts timetable.

To fulfil DFC year-end requirements download and complete our DFC3 DFC Grant year-end form (XLS, 54.3KB) and email it to infrastructure.delivery@essex.gov.uk

Contact us

For enquiries about DFC contact Jane Lewis. Include their name in your subject heading and email infrastructure.delivery@essex.gov.uk