Phase 2 School-Based Nursery Capital Grant: A £45 Million Investment

The government has announced the second phase of the school-based nursery capital funding programme, following last years success in Phase 1. With over 4,000 extra school-based nursery places available across England this September, the programme has been to expanded with further investments.

Phase 1 has already delivered significant results across England. Following the government’s initial investment of £37 million, 189 of the 300 government-funded new or expanded nurseries are set to be up and running this month.

Phase 2

As part of the government’s aim to give every child quality provision care, it will invite more schools to bid for up to £150,000 funding from a £45 million pot to create a further 300+ new or expanded school-based nurseries.

What to expect in Phase 2?

• Funding: Up to £150,000 per school from a total £45 million investment
• Timeline: Open to applications between the 22 September and the 11 December 2025
• Target: 300 new or expanded nurseries delivering up to 7,000 additional places
• Operational Date: September 2026

Maintained nursery schools

Maintained nursery schools are now also eligible to apply, alongside the existing eligible primary schools that provide early years provision.

Application Process and Requirements

Based on the Phase 1 experience, successful Phase 2 applications will need to demonstrate:

• Local Need: Clear evidence of demand in the local area
• Space Utilisation: Effective use of existing school space
• Financial Planning: Detailed cost plans and competitive quotations
• Community Consultation: Evidence of stakeholder engagement where required
• Project Readiness: Clear timeline for delivery by September 2026

Schools can choose to operate nurseries internally or partner with private or voluntary sector providers, offering flexibility in delivery models.

How Munday & Cramer Can Support Your Application

At Munday & Cramer, we have extensive experience supporting educational institutions through funding applications. Our team of specialists can help with:

• Strategic Planning: Helping you assess your school’s readiness and potential for nursery expansion.
• Business Case Development: Creating well-evidenced proposals that demonstrate need and viability.
• Application Support: Guiding you through the application process when future rounds open.
• Project Planning: Supporting the implementation of successful bids

With over 40 years’ of experience in the education sector, we understand the unique challenges and opportunities that school-based nursery projects present.

Contact M&C today!

Don’t miss this opportunity to secure up to £150,000 in school-based nursery capital funding to create vital childcare provision for your community. With the right preparation and professional support, your school could be among the next 300 to benefit from the transformative school-based nursery capital grant programme.