Parents need quality, affordable childcare in their local area, so that every child can have the best start in life.
Already, phase 1 of the school-based nursery capital grant is making a difference to thousands of families across the country, supporting the childcare expansion. 300 schools received funding this year to create up to 6000 new nursery places. As part of our plan to create thousands of new places in school-based nurseries, we have now entered the second phase of the programme, focusing on supporting families in disadvantaged areas to better access early years provision.
Between the 22 September and the 11 December, primary schools can apply for up to £150,000 of funding to create or expand on-site nurseries. Maintained nursery schools are now also eligible to apply.
But what are school-based nurseries and who will benefit? Here’s everything you need to know.
What is a school-based nursery?
A school-based nursery is nursery provision located on a school site. The nursery setting may operate independently from the school or could be run by the school.
Some will offer childcare for ages three and four, whereas others will cater for younger children. This will depend on the individual setting as there are different regulations for schools to follow depending on the age group.
Why are nurseries in schools popular with parents?
Quality school-based nursery provision is popular with parents, especially families with children of different ages. It can mean a single point of contact, easier drop-offs and pick-ups and continuity of care from the beginning of a child’s education.
What are the other benefits of school-based nurseries?
The entire diverse childcare sector provides valuable care, with schools at the heart of our communities. School-based nursery settings see lower staff turnover, serve a greater proportion of children with SEND and are more prevalent in deprived areas.
Teachers have told us the benefits of nurseries on site, saying it helps them build strong relationships between nursery and school staff, which can lead to smoother transitions into school for children.
How many new school-based nurseries are being created?
From the first round of funding, 300 new school-based nurseries are due to create places, with the majority in 2025-26 academic year.
Schools are on track to deliver over 4,000 new early years places this September.
Backed by £45 million of funding, phase 2 will deliver at least 300 new or expanded school-based nurseries, ready to offer new childcare places in the 2026-27 academic year.
Where will the new nurseries be located?
The majority of phase 1 school-based nurseries are in the North or Midlands, including around one in ten in the North East – increasing access to childcare in areas where it's most needed.
For phase 2, our goal is to build capacity in areas of need. We aim to build new school-based nurseries all over the country, especially in places that are disadvantaged.
How is this being funded?
The government has pledged almost £370 million to further fund the programme.