The School-Based Nursery Capital Grant

INTRO

Let’s talk about an important opportunity for schools in the UK.

The government has introduced a new funding initiative aimed at helping schools create or expand nurseries.

In today’s video, we will talk about how this funding works and how it can help.

Intro Vid

In 2024, the UK government allocated £15 million under the School-Based Nursery Capital Grant.

This grant provides up to £150,000 to state-funded primary-phase schools in England, to help them create or expand nursery facilities.

The grant is intended to assist schools that already offer early education, like reception classes, and have surplus space that could be used for nursery provision.

The initiative is expected to support up to 300 schools in the first round and aims to create or expand 3,000 new school-based nursery places across the country.

To support the expansion, we’ll need a lot more places and additional initiatives, especially since an estimated 85,000 new spots will be required by September 2025.

It’s important to note that this grant is not available to private nurseries, independent providers, or maintained nursery schools, as it strictly applies to state-funded schools using their existing space for nursery purposes.

Who Can Apply

Eligible schools are state-funded primary-phase schools that already provide some form of early education, such as a reception class.

These schools must have surplus space in their current buildings, and the project should be planned to be operational within the 2025-2026 academic year.

Schools must also demonstrate that there is a local demand for nursery places and that the project aligns with local authority plans for childcare provision.

Schools collaborating with Private, Voluntary, and Independent (PVI) providers or childminders may also apply, but the nursery must be located on the school premises.

Schools need to consult with their local authorities to ensure that the nursery aligns with local childcare needs.

What Funding Is Available

Schools can apply for up to £150,000 of capital funding.

The grant can only be used for capital expenditures, such as:

• Renovations or upgrades of surplus school space to accommodate nursery provision.
• Purchasing essential nursery equipment.
• Upgrading facilities to meet safety and accessibility standards.
• Improving indoor and outdoor play areas for the nursery.
• Technical advisor fees and survey costs.

However, there are restrictions.

The grant cannot be used for operational costs, including:

• Salaries for nursery staff or teachers.
• Utility bills like electricity, water, or heating.
• Ofsted registration fees or general nursery supplies like books and teaching materials.
• Routine maintenance of school buildings.

Schools must ensure they have the resources to cover the ongoing operational costs once the nursery is up and running, as the grant will not provide funds for day-to-day expenses.

Key Dates and Timeline

The application window for the School-Based Nursery Capital Grant is from October 17, 2024, to December 19, 2024.

Schools need to submit all supporting documents and their application before the deadline.

Projects must aim to be operational by the 2025-2026 academic year.

All capital works funded by the grant must be completed by March 31, 2027.

If a school cannot meet this deadline, the government reserves the right to recover the grant.

Why the Grant Was Introduced

This grant was introduced as part of the government’s strategy to increase nursery places in England.

In September 2025, all parents with children aged 9 months old will be entitled to 30 hours funding.  This inevitably will lead to dramatic increase in the number of children wanted to attend nursery or other early years provision.

Nurseries will already be seeing an increase in demand.

Though, this will increase with an estimated 85,000 more childcare places needed by September 2025.

The government hope that by using surplus space in primary-phase schools, they aim to address the shortage of affordable childcare options in certain areas.

This initiative aims to create new opportunities for early childhood education, especially in areas where existing nursery provision is limited or in high demand.

However, it is essential to note that the grant is exclusively for state-funded schools and does not apply to private nurseries or independent early years providers.

This limitation could create concerns for private nursery operators who may see increased competition from expanded school-based nursery provision.

Though, this initiative is only set to create an additional 3000 childcare spaces.

A long way off the required 85,000.

So in spite of this initiative private and independent early years providers will still see a increase in demand, and should have little cause for concern.

How to Apply

Schools interested in applying for this grant must meet the eligibility criteria and submit their application through the online application service provided by the Department for Education (DfE).

Before applying, schools need to:

Ensure that they have consulted with their local authority and that the proposal aligns with local childcare needs.

Confirm that the necessary permissions from freehold landowners or local planning authorities have been secured if needed.

Be prepared to submit all required documents, including floor plans, photographs of the affected spaces, cost breakdowns, and quotes from contractors.

The application process is competitive, and only schools that can demonstrate a clear need for nursery expansion and the ability to deliver the project within the required timeframe will be successful.

Project Risks and Responsibilities

Schools applying for the grant must be aware of the potential risks and responsibilities that come with managing a capital project. Some of the risks include:

Unexpected costs that go beyond the grant limit of £150,000.

Delays in obtaining planning permission or approvals.

Issues with contractors or technical advisers.

Challenges in recruiting qualified early years staff for the expanded nursery provision.

Schools must plan their projects carefully to avoid any unforeseen issues that could impact the success of the project.

It is essential to have a clear understanding of the budget, timeline and required resources before submitting the application.

Outro

The School-Based Nursery Capital Grant provides an opportunity for state-funded schools to expand their nursery provision.

However, it is limited to capital costs and excludes operational funding, so schools must have the necessary resources, knowledge and experiences to maintain the new nursery spaces once they are operational.

If your school is considering applying, make sure you review the full eligibility criteria, consult with your local authority, and prepare your application before the deadline on December 19, 2024.

For private nurseries and other independent providers, it is important to stay informed about how these developments may affect the local childcare landscape.

You can contact your local schools and see if they have any plans to expand or create their own nursery.  If they don’t you can propose to create one for them on their premises.  Providing an opportunity for you to expand or start your nursery.

Plus, as I mentioned the demand for childcare will dramatically increase by September 2025.  This initiative will only reach less than 5% of this increased demand.  Therefore it is likely that the government will need to introduce more things like this or face a scenario next year where parents won’t be able to find a place for their child, with nurseries likely to have long waiting lists.

If the government do introduce any new schemes or initiatives I will post about them here on the channel so make sure you subscribe so that you can hear about them early enough to apply for it.

Thousands of new childcare providers will be needed by September 2025 in order to meet the demand. You could help meet this need.  If you have any plans of opening a nursery then I can help you.

There’s never been a better and more needed time to do so.

Just check out the website www.openanursery.co.uk to get in touch.

There I offer consultations, mentorship, courses and documents to help you to open your nursery.

So, head over there to learn more.  You can click the link here to get there.

Though before you go if you found this information helpful, don’t forget to like this video, and share it with anyone who could benefit from hearing about this school-based nursery grant.

Thanks for watching!

And I look forwards to hearing from you.

God bless.