Public Sector RM&I: Tackling the Maintenance Backlog in 2026
Public Sector Maintenance Backlog:
In 2026, the UK public sector’s maintenance backlog has reached £49bn, with urgent repairs needed across MOD, NHS, and schools. While funding for critical repairs and decarbonisation is increasing, local authorities are prioritising essential works due to ongoing budget pressures.
Public Sector RM&I: Tackling the Maintenance Backlog in 2026
The UK’s public sector faces a critical challenge: a maintenance backlog now estimated at £49 billion, with urgent needs across Ministry of Defence (MOD) properties, schools, and NHS facilities. Despite increased funding for essential repairs, local authority budgets remain under severe pressure, forcing a shift in priorities towards critical repairs and compliance-driven upgrades. As we move into 2026, the landscape for public sector repair, maintenance, and improvement (RM&I) is shaped by economic uncertainty, decarbonisation targets, and the need for resilient, energy-efficient infrastructure.
The Scale of the Challenge: £49 Billion and Rising
According to the National Audit Office, the government’s maintenance backlog has grown steadily in recent years, reaching at least £49 billion by late 2025. MOD properties, schools, and NHS facilities each account for over £10 billion of this total, making up 88% of the backlog. The urgent need for increased funding is clear, especially as the cost of inaction continues to rise.
“There is an urgent need for a sector-wide increase in funding for basic repairs and maintenance across the public property estate.”
– Construction Products Association, Autumn 2025
Funding and Output: What’s Changing in 2026?
Public non-housing RM&I output is forecast to rise by 2.0% in 2026, following a 1.0% increase in 2025. This growth is driven by increased allocations for decarbonisation, energy-efficiency upgrades, and emergency repairs – particularly in response to issues like RAAC (reinforced autoclaved aerated concrete) in schools and hospitals.
- MOD, NHS, and Schools: Each faces a backlog of over £10 billion.
- Local Authority Budgets: Despite a 6.8% increase in core spending power for English councils in 2025/26, real-terms funding per capita has declined, and many councils are redirecting non-ringfenced maintenance funds to social care and other urgent needs.
- Decarbonisation Funding: The Public Sector Decarbonisation Scheme (PSDS) Phase 4 will provide £86 million in 2025/26 and £427 million in both 2026/27 and 2027/28 for energy-efficiency upgrades.
Decarbonisation and Energy-Efficiency: Priorities and Constraints
Decarbonisation and energy-efficiency upgrades are now central to public sector RM&I. The government’s Net Zero and Warm Homes Plan targets are driving investment in insulation, heat pumps, solar PV, and building fabric improvements across the public estate.
- Schools: The School Condition Allocation (SCA) for 2025/26 is £1.84 billion, up 15% from 2024/25, but still below 2021/22 levels after inflation. The maintenance backlog in English schools alone is estimated at £13.8 billion.
- NHS: The NHS estate’s backlog maintenance rose 17.6% to £13.8 billion in 2023/24. The government has committed £6 billion per year for NHS maintenance and repair from 2025/26 to 2034/35, with a focus on critical infrastructure risk and RAAC removal.
- MOD: One-third of Single Living Accommodation (SLA) and two-thirds of Service Families Accommodation (SFA) are now considered unfit for purpose, with the Defence Select Committee highlighting urgent need for investment.
Local Authorities: Critical Repairs Over Routine Maintenance
With budgets under pressure, local authorities are prioritising urgent and compliance-driven repairs over routine maintenance. According to Unison, councils face a £4.1 billion funding shortfall in 2026/27, and 57% plan to cut spending on repairs and maintenance. Non-essential works are often postponed, and funding for routine maintenance is frequently redirected to social care and emergency needs.
Compliance, Safety, and New Legislation
- Fire Safety and Cladding Remediation: Social housing providers and local authorities are prioritising fire safety, cladding remediation, and compliance with the Social Housing (Regulation) Act and Renters’ Rights Bill, which impose stricter repair timescales.
- RAAC and Structural Risks: Emergency repairs to address RAAC in schools and hospitals are ongoing, with the government aiming to eradicate RAAC from the NHS estate by 2035 and from schools via targeted grant funding.
- Decent Homes Standard: Consultations are underway to make the Decent Homes Standard a regulatory requirement in social housing by 2035 or 2037, driving further investment in repairs and upgrades.
The Outlook for 2026: Facts, Figures, and Forecasts
Public Non-Housing RM&I Output:
2024: £7.7bn
2025: £7.8bn (+1.0%)
2026: £8.0bn (+2.0%)
2027: £8.3bn (+4.0%)
Key Growth Drivers:
- Decarbonisation and energy-efficiency upgrades (PSDS, Warm Homes Plan)
- Emergency repairs (RAAC, fire safety, cladding)
- Increased compliance and regulatory requirements
Constraints:
- Local authority budget pressures
- Labour and skills shortages
- Rising construction and materials costs
The public sector’s RM&I landscape in 2026 is defined by a massive maintenance backlog, rising compliance demands, and the urgent need for decarbonisation. While funding for critical repairs is increasing, local authorities and public sector bodies must continue to make tough choices, prioritising essential works over routine maintenance. The sector’s ability to deliver on decarbonisation and energy-efficiency targets will depend on sustained investment, skilled labour, and innovative solutions from suppliers and contractors.
Tricel brings extensive experience supporting RM&I programmes across the public sector, working closely with water utilities, local authorities and infrastructure contractors to address ageing assets and maintenance backlogs. With a strong track record in the refurbishment, upgrade and replacement of water storage systems, wastewater and water treatment systems, and pumping solutions, Tricel helps public sector clients extend asset life, improve compliance and deliver value within constrained budgets. Its practical, site-ready solutions and understanding of operational pressures enable faster, lower-disruption maintenance interventions that align with long-term resilience and regulatory requirements.
Frequently Asked Questions
The backlog is estimated at £49 billion, with MOD, NHS, and schools each accounting for over £10 billion.
Output is forecast to rise by 2.0% in 2026, following a 1.0% increase in 2025.
Decarbonisation, energy-efficiency upgrades, emergency repairs (RAAC, fire safety), and compliance with new legislation.
Budget pressures and rising costs mean councils must prioritise urgent and compliance-driven repairs over routine maintenance.
The Public Sector Decarbonisation Scheme (PSDS) will provide £86 million in 2025/26 and £427 million in both 2026/27 and 2027/28
Sources
- Construction Products Association, Autumn 2025 Forecasts
- Office for National Statistics (ONS), Construction Output September 2025
- Glenigan Construction Review, October 2025
- National Audit Office, Public Sector Maintenance Backlog
- Department for Education, School Condition Allocations
Read More...
- Water Industry Insights & Innovations
- Cold Water Storage Tanks
- Case Studies
Water Resources and Environmental Destination Framework: 2026 Policy and Practice
The UK’s water sector is undergoing a transformation. The Environment Agency’s Environmental Destination framework and new 2026 regional water resource plans are setting ambitious targets for sustainable abstraction, climate adaptation, and local engagement. Find out what this means for policy, practice, and the future of water resilience.
Public Sector RM&I: Tackling the Maintenance Backlog in 2026
The UK’s public sector faces a £49bn maintenance backlog in 2026, with urgent needs in MOD, NHS, and schools. Funding for critical repairs is rising, but local authority budgets remain under pressure, driving a focus on essential works and decarbonisation.
UK Construction Market Outlook 2026: Navigating Uncertainty, Finding Opportunity
2026 brings cautious optimism for the UK construction sector, with output forecast to grow by 2.8%. Infrastructure and industrial construction are set to lead the recovery, while private housing and commercial sectors face ongoing headwinds. Explore what this means for Tricel Water UK, its customers, and project partners.
Tricel Water: CHAS Accredited Water Tank Supplier You Can Trust
Discover Safe Contractor Approved CHAS accredited certification, ensuring water systems meet the highest safety, compliance, and quality standards.
