NPO extension funding: Application process to open next month

The portal for National Portfolio Organisations to apply for 2026/27 extension funding will open next month, Arts Council England (ACE) has said.

Under plans set out in January, the 2023-26 National Portfolio is being extended by an additional year in response to ‘external challenges’ the sector is facing.

The process of applying for funding for an additional year was delayed but ACE says the application portal will now open at midday on Monday 4 November 2024 and close midday on Thursday 19 December. Guidance for applicants will be published on the day the application process opens.

The single year extension follows a similar portfolio extension for 2022/23 in the wake of the Covid pandemic.

On that occasion the total funding pot increased slightly to £410.4m from £405.5m for each of the previous three years – a rise of 1.2%. Inflation during the 2018 to 2022 period averaged 3.5% a year according to Bank of England figures. Since 2022 inflation has been around 10%.

ACE is yet to say whether core funding for 2026/27 will remain at current levels or rise to take inflationary pressures into account.

Earlier this month ACE said that, given the government’s position on public spending, the arts and culture sector should not assume increases to the funding it distributes over the next two to three years.

Risk assessment

Organisations applying for extension funding will be provided a draft budget for 2026/27 and a yes/no answer to question about whether activity will remain broadly in line with that for the 2023-26 period.

If activity is to change, organisations will need to provide a short statement outlining the changes.

ACE will then conduct a risk assessment of applications that will take into account financial viability, governance and management, and activity against outcomes.

It is aiming to notify applicants of its decision by end of May 2025.

Meanwhile, ACE has also announced that organisations relocating out of London under its Transfer Programme will automatically be offered a grant for 2025/26 if they complete their move ahead of the 31 October deadline.

“This will be a direct award for one year and will not require the completion of an application form,” ACE said.

Their funding agreements for 2025/26 will be issued at the end of January 2025 with the Post-Transfer funding period running from 1 April 2025 – 31 March 2026, bringing them in line with the rest of the Portfolio.

They will also be eligible to apply for extension funding 2026/27 via the main Portfolio Extension Programme.