Nursery funding

Local authorities to propose school-based nurseries for phase three

The DfE has today (Wednesday 4 February) published guidance for submitting proposals for its third phase of school-based nurseries funding.

This pot of money – almost £325 million – will be made available for:

  • Local authorities to draw up multi-year proposals for further SBNs or extended SBNs
  • Projects to be ready between 2027 to 2030 costing up to £1m for new nurseries or up to £500,000 for repurposing existing spaces
  • Places to be available to children from September 2027
  • Projects in primary schools, maintained nursery schools and Best Start Family Hubs
  • Proposals to be submitted by end September 2026 – ie a short window to prepare all this

Tim McLachlan, Chief Executive of NDNA said: “The Government has left the ground-work and local decision-making for the next round of school-based nursery funding to local authorities. Councils must now engage with all types of childcare provider and ensure the local sufficiency data determines a feasible plan which will increase places where they are most needed.

“We are extremely concerned that our recent research is showing that the majority of local authorities have not published a Childcare Sufficiency Assessment in the last eighteen months. We know that lessons have been learnt from the first two rounds of funding but remain anxious that local authorities will be driving these plans when 52% have not published recent data on local demand which they need to make these crucial decisions.

“We would encourage councils and schools to follow the guidance about collaborating with private and voluntary nurseries or childminders on potential delivery models that recognise the existing expertise in our sector to better meet demand.

“Previous rounds of school-based nursery funding displaced a number of well-established nurseries who were running on, or next to, school sites. In these cases, new places were not created just moved. We don’t want to see any more public money wasted to displace existing provision.

“The very short application window could encourage local authorities to cut corners and discourage well-prepared, well-researched bids which include all stakeholder input. We would urge the DfE to extend the application deadline to avoid a situation in which councils rush their proposals.”

The DfE has listened in part to NDNA’s concerns about duplicating existing provision and included this paragraph about partnering with private providers:

Collaborating with PVIs and childminders

Local authorities may choose to work with a school or owner of a BSFH building to lease buildings to a private, voluntary, or independent provider (PVI), childminder or group of childminders to operate from. These partnerships can bring additional benefits such as flexibility to offer nursery provision that better meets demand. If a local authority is considering putting forward a school or hub that already has a PVI provider on site in their funding proposal, it should first explore the possibility of continuing the existing partnership between the school / BSFH and PVI before evaluating other options. It is not the intention of this grant to displace existing like for like provision.

Read the full guidance here https://www.gov.uk/guidance/school-based-nursery-capital-grant-2027-to-2030

  • England
  • childcare
  • early education
  • early years
  • funding
  • government funding
  • local authorities
  • Maintained Nurseries
  • NDNA
  • nurseries

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