How to Fund a School Gym: DfE Approved Leases and CIF Grants

Getting a new school gym off the ground is rarely a question of whether the school needs one. Most headteachers, PE leads and school business managers already know how much a dedicated fitness suite would benefit students. The real question is always the same: how do we pay for it?

The good news is that there are several well-established funding routes available to schools in England, and many of them can be combined. Whether you are looking to kit out a small fitness room or build a full gym from scratch, this guide covers the two main options: DfE approved leases and the Condition Improvement Fund.

At Hire Fitness, we have spent 25 years helping schools across the UK and Ireland design, install and maintain school gym equipment using all of these funding routes. Here is what you need to know about each one.

DfE Approved Leasing

Leasing is the most popular way for schools to fund gym equipment because it removes the need for a large upfront payment. For a detailed comparison of leasing versus purchasing, see our guide to leasing vs buying gym equipment for schools. Instead, the school spreads the cost over a fixed period, typically three to five years, with regular monthly or quarterly payments.

Since April 2024, the DfE introduced changes under IFRS 16 that affect how leases are classified. The old distinction between “operating leases” and “finance leases” has effectively been removed for accounting purposes. Under the new rules, all leases are classified as borrowing under the Education Act 2002, and the Secretary of State must grant consent for them.

However, the DfE has issued a General Consent covering common categories of leased assets, meaning schools do not need to apply individually for approval on most equipment leases. This consent applies to both maintained schools (from April 2024) and academies (from September 2024).

For schools, the practical effect is that you can still lease gym equipment through a DfE approved framework without getting bogged down in paperwork. The key is to work with a supplier who understands the education leasing landscape and can structure the agreement properly.

The benefits of leasing for schools include:

  • No large capital outlay. The school does not need to find tens of thousands of pounds from its budget in one go.
  • Fixed payments that make budgeting straightforward for the school business manager.
  • Access to higher quality commercial grade equipment that would be too expensive to buy outright.
  • Equipment is maintained and serviced throughout the lease term, so the school does not carry the maintenance burden.

At Hire Fitness, our DfE approved leases allow schools to spread the cost of a complete gym installation over three to five years. Every secondary school in the UK has access to pre-approved lease funding of up to £250,000, making it possible to equip even large fitness suites without upfront capital. This includes the equipment itself, delivery, installation by DBS checked engineers, and ongoing maintenance.

Condition Improvement Fund (CIF)

The Condition Improvement Fund is a competitive capital funding programme run by the DfE. It provides grants for building and infrastructure improvements at academies, sixth form colleges and voluntary aided schools.

For 2025 to 2026, the DfE allocated almost £470 million to the CIF programme. Of the 4,124 eligible schools, 1,868 applied for 2,846 projects, and 789 projects at 656 schools were approved.

CIF is primarily designed for building condition improvements rather than loose equipment purchases. The fund focuses on projects that address health and safety issues, building compliance and buildings in poor condition. The minimum project threshold for primary and special schools is £20,000.

So how does CIF relate to gym equipment? If your school needs to renovate or build a fitness suite as part of a wider building improvement project, CIF can cover the construction and fit-out costs. The gym equipment itself might not be eligible as a standalone CIF bid, but if the project involves converting an unused space into a gym, the building works, flooring, ventilation and fixed infrastructure could be funded through CIF, with the equipment funded separately through a lease.

CIF applications for 2026 to 2027 opened in October 2025. If your school is eligible, it is worth considering whether a gym conversion project could form part of a condition improvement bid.

Combining Funding Sources

The most effective approach we see schools take is combining two or more funding routes. For example:

An academy might apply for CIF funding to convert an unused classroom into a fitness suite, then lease the gym equipment separately over five years.

A secondary school might use its delegated capital budget for the room fit-out and flooring, then spread the equipment cost through a lease.

Where to Start

If you are considering a school gym project and are unsure which funding route suits your school, we can help. For practical advice on getting started with a limited budget, read our PE teacher’s guide to setting up a school gym on a budget. Hire Fitness has been working with schools across the UK for 25 years, and we understand the funding landscape. We offer free consultations and 3D gym design to help you plan a realistic project that works within your budget.

Get in touch with our schools team to discuss your options.