School based nursery funding (Phase 2)
19 Sep 2025
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.
Phase 1
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. Three hundred schools received funding this year to create up to 6000 new nursery places. As part of the government’s plan to create thousands of new places in school-based nurseries, they have now entered the second phase of the programme, focusing on supporting families in disadvantaged areas to better access early years provision.
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.
Where can your school apply?
Schools can find more information on how to apply here.
Maintained nursery schools are now also eligible to apply.
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