When it applies
The rule applies to MATs above a published size threshold and to certain sixth-form colleges with reserves capacity. Single academies under the threshold are exempt. The current banding is published in the technical guidance for the round.
Source of contribution
The contribution can be drawn from reserves, from School Condition Allocation, from Devolved Formula Capital, or from a Salix or commercial loan provided the loan is itself approved. The source must be evidenced in the governor pack.
Effect on VFM score
A contribution at the floor satisfies the eligibility gate. A contribution materially above the floor lifts the value-for-money score. The estimator caps the lift at 18 of 30 in the VFM weight to avoid over-claiming.