Policy paper

West Midlands Combined Authority Integrated Settlement 2025 to 2026

Published 20 December 2024

Applies to England

Functional Responsibility Fund Home Department Allocation Mechanism Funding totals for 2025/26*
Local growth and Place UK Shared Prosperity Fund Ministry of Housing, Communities and Local Government (MHCLG) National formula £32,735,765 RDEL, £13,727,835 CDEL
Local growth and Place Investment Zones MHCLG Existing allocation £6,400,000 RDEL, £9,333,000 CDEL
Local growth and Place Made Smarter Department for Business and Trade (DBT) National formula £1,226,400 RDEL
Local growth and Place Growth Hubs DBT National formula TBC
Local growth and place Create Growth Department for Culture, Media & Sport (DCMS) New integrated settlement formula £425,000 RDEL
Local transport Bus Service Improvement Plan Department for Transport (DfT) National formula £37,066,610 RDEL
Local transport Bus Service Improvement Plan Capacity and Capability DfT National formula £125,000 RDEL
Local transport Bus Service Operators Grant DfT National formula £1,792,259 RDEL
Local transport Bus Service Operators Grant Plus DfT National formula £11,000,000 RDEL
Local transport Active Travel Fund DfT National formula TBC
Local transport Active Travel Capability Fund DfT National formula TBC
Local transport Local Electric Vehicle Infrastructure Fund DfT National formula TBC
Adult skills Adult Education Budget Department for Education (DfE) National formula £140,000,000 RDEL
Adult skills Free Courses for Jobs DfE National formula Included in figure above**
Adult skills Skills Bootcamps DfE TBC TBC
Housing and regeneration Brownfield Infrastructure and Land Fund MHCLG Existing allocation £34,000,000 CDEL
Housing and regeneration Brownfield Housing Fund MHCLG National formula £26,114,324 CDEL
Housing and regeneration Brownfield Land Release Fund MHCLG New integrated settlement formula £2,583,567 CDEL
Buildings’ retrofit Warm Homes: Social Housing Fund Department for Energy Security and Net Zero (DESNZ) New integrated settlement formula £29,172,000 CDEL
Buildings’ retrofit Public Sector Decarbonisation Scheme DESNZ New integrated settlement formula £3,348,000 CDEL
Buildings’ retrofit Warm Homes: Local Grant DESNZ New integrated settlement formula £5,280,000 CDEL
Employment support Connect to Work Department for Work and Pensions (DWP) National formula £5,720,000 RDEL
Total Quantum       TBC

The West Midlands Combined Authority’s City Region Sustainable Transport Settlement (CRSTS) CDEL allocation for financial year 2025 - 26 is £211,477,000m. CRSTS funding will be consolidated into West Midlands’ integrated settlement from financial year 2026 - 27.  This is one year early, and reflects an agreement between the Combined Authority and DfT in recognition of a bespoke bus funding settlement.

*provisional – these figures may be revised at the time of final publication.

** subject to WMCA delivering 80% of their available Free Courses for Jobs funding across an academic year.

‘New integrated settlement formulae’ have been agreed for funds that are allocated competitively but fall in scope of the integrated settlements. These formulae will only be used for areas which receive integrated settlements. 

For non-competitive funding lines, the MCAs’ share of these funds will be determined using the ‘National formula’ for these funds. These formulae will be used for all areas eligible for the relevant funding line.  

More information on the approach to formulae in the integrated settlements is set out in the MoU annex.