Key takeaways
£102M fund targets primary care upgrades
NHS aims to modernise facilities and boost capacity.
Practices must align with local strategies
Funding depends on clear plans and patient impact.
Legal agreements carry long-term commitments
Practices must understand grant terms before signing.
The Primary Care Utilisation and Modernisation Fund (UMF)
The Primary Care Utilisation and Modernisation Fund (UMF) is a £102 million capital fund allocated by NHS England during the 2025/2026 financial year, with the aim to improve Primary Care Facilities throughout the country. The UMF was introduced in the Government’s autumn budget following the governments spring 2024 spending review which acknowledges years of under investment in the primary care infrastructure. This article will explore how the UMF will be delivered over the course of this summer.
Aims and purpose
The Government’s stated intention is to shift care from hospitals to the community-and has recognised that this will necessitate modernising and improving primary care facilities. By improving the layout of premises and promoting a more effective workflow, the expected outcome is additional capacity so that more appointments can be offered and services delivered.
How the Funding will be disbursed
The UMF scheme is only available for utilisation during the 2025/2026 financial year and will be managed in accordance with the National Health Service General Medical Services Premises Costs Directions 2024 by NHS England and ICBs. Allocations have already been decided and a list of practices which will receive the money has been released. Practices were required to submit a proposal for spending which should align with local integrated care systems infrastructure strategies and approval will depend upon the value of money, how many patients it will benefit and how many more appointments will be enabled. In order to make an allocation, ICBs must adhere to a four-stage process which in summary, consists of:
Identifying opportunities – it is essential for practices to have a clear understanding of their current estate and the potential that it has in order to align with the fund’s objectives. Site surveys and practices assessment can highlight these opportunities.
Develop a PID – a compelling PID must be drafted alongside the ICB which should outline aims and the purpose of the project, demonstrating that there is a business case for the works.
Submit to the ICB – the ICB will prioritise and submit eligible projects to NHS England regional teams.
Implementation – If successful primary care entities should work closely with the ICB to implement the project within the guidelines of the scheme.
Prior to the implementation phase there are final approvals from NHS England to ensure that the proposal is fair and that the rules to the funding agreement have been adhered to. There is no commitment to funding before all of these approvals have taken place.
The funding scheme represents a progressive step in the development of modernising and improving primary healthcare facilities, and in turn taking pressure off hospitals by having improved community premises.
Legal obligations
To help streamline the process, NHSE has released a short-form Grant Agreement available only for UMF grants under £144,000. For larger amounts, the standard form NHSE Grant Agreements (leasehold or freehold) and, in appropriate cases, Legal Charges are required. Under these agreements, the practice will agree with NHSE and the ICB to use the improved practice premises for a guaranteed minimum period of time failing which they may be required to repay some or all of the grant.
Practices should ensure they understand their legal obligations before signing a Grant Agreement. Rebecca Wakefield from Hill Dickinson’s specialist Health Real Estate team will be presenting a training session on the legal documents for Primary Care Commissioning CIC on Monday 6th August. Register your interest in attending here.
Hill Dickinson has a dedicated Primary Care team.
