Munday and Cramer

School-based Nursery Capital Grant

The DFE announced that £15.0M will be made available to create up to 300 new nurseries or expanded nurseries across the UK by converting surplus school space into nursery space. This scheme is to support the 2025 scheme to provide 30 hours/week of government funded hours for childcare and early education to working parents. 

This funding is only available to schools who already offer some early year provision such as reception. The first round offers up to 300 allocations with £150,000 being granted per school, Schools can register interest for future rounds if they are not ready yet.

The DFE stated that in order to support the 2025 expansion of government-funded hours of childcare and early education for working parents to 30 hours a week, schools “will need to demonstrate how their proposals will respond to need in their local area.” Schools can choose to run the nursery internally or contract them out to private or voluntary sector providers.

Schools are invited to bid for the grant. Successful schools will be allocated funding in Spring 2025 as part of the wider investment to create up to 3,000 new nurseries as part of the first phase. The department plans to use the first phase to gather learnings for future years and gain a better understanding of how we can support underserved and impoverished communities in order to guarantee that the program is delivered in a way that will benefit all parents and children.

FAQ's

State-funded primary-phase schools that currently provide some early education, like a reception class, are eligible to apply for grant support. Projects must make advantage of any available space in the school, including primary-phase satellite locations.

Since maintained nursery schools and special schools lack the extra space provided by declining primary school enrolment, they are not eligible to apply for this funding. Nonetheless, they are urged to express interest in hiring more nursery staff in the future.

VA schools are allowed to apply, but will only receive 90% of funding (governing body to contribute 10%).

Applications deadline: Midnight 19th December (via online portal)
New account applications for portal: 12th December
Target for projects to be operational: September 2025.

  • Floor spaces
  • Photographs as records of before/after.
  • Cost plan / Addressed competitive quotations
  • Summary of consultation process and responses
  • Conversion/refurbishment costs 
  • Some new physical assets (if they can be depreciated over more than one year).
  • Professional fees

Up to £150.0K per school

Some schools may need to undergo 3-4 week consultation. Mostly for wholly-new nurseries (thus lowering age-range of school), or expanding a nursery beyond 30 places, thus reducing school capacity by 30+ places to accommodate the nursery. Must be completed ahead of the application.

You can express your interest in starting a school-based nursery in the future via the online application service, even if you are unable or unable to apply during this round. This includes educational institutions that do not fit the requirements for qualifying, are thinking about establishing a nursery in the near future, or are currently dealing with other issues that prohibit them from submitting an application.

How ready are you?

Munday + Cramer are here to support you through every step of this process.

Fill in the form below to book a free consultation considering the main aspects for a well evidenced business to underpin your nursery funding application.

Contact Us

Have additional questions about Early Years Funding? Need help compiling evidence? Here at Munday + Cramer, we specialise in bid writing, architecture, surveying, and project and facilities management. What’s more, we also have over 40 years of experience! 

To reach a member of our specialist team, get in touch today.

You can reach us on info@mcessex.co.uk or by calling 01245 326 200.