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School-based Nursery Capital Grant

The School-based Nursery (SBN) Capital Grant for 2025 to 2026 is available for eligible state-funded primary-phase schools and maintained nursery schools to apply for up to £150,000 of capital funding to create or expand a school-based nursery. This is the second phase of the school-based nurseries programme. It builds on the foundations of phase 1 (SBN Capital Grant 2024 to 2025) and has an increased focus on supporting disadvantaged families to access early years provision. The online application service will open at 10.00AM on 24 September 2025 and can be accessed through the following link https://apply-for-school-based-nurseries-capital-grant.education.gov.uk/. We will not accept applications made through other routes or after this deadline.

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Contents

Summary

Following the successful delivery of the School-based Nursery (SBN) Capital Grant 2024 to 2025 (phase 1), the government remains committed to expanding SBNs across England and has pledged almost £370 million of further funding between 2025 and 2030 to support future phases of the programme.  

The objective of the SBN programme is to build capacity in areas of need, especially in deprived areas, enhancing the overall local offer without negatively impacting provision in close proximity, including that delivered by external providers. The Best Start in Life strategy recognises that children growing up in poverty or facing social challenges often lack access to high-quality early education, which can significantly impact their readiness for school and long-term outcomes. 

The School-based Nursery Capital Grant 2025 to 26 is for state-funded primary-phase schools in England that already offer some early education (such as a reception class), seeking to create or expand an SBN, as well as maintained nursery schools in England seeking to expand nursery provision on the current school premises. Schools that were successful in phase 1 and received SBN capital grant funding are not eligible to apply for phase 2, but will be eligible to work with their local authority as part of phase 3. Special Schools and Pupil Referral Units (PRUs) will not be eligible to apply for phase 2. 

For the purposes of this grant, SBNs can operate as: 

• nursery classes embedded in a primary school 

• expansions to nursery classes on the site of current maintained nursery schools 

• nursery units led by governors or academy trusts 

• childminders and private, voluntary, and independent (PVI) nurseries contracted to deliver nursery provision on a school site, or operating on a school's behalf.  

You can apply for up to £150,000 of capital funding to create or repurpose space for nursery provision. While we encourage schools to consider any spare space for their project, unlike phase 1, the use of surplus space is not a requirement for phase 2 of the programme. 

You are encouraged to consider the use of other funding sources alongside this grant to complete your project. Doing so can strengthen your application by increasing its value-for-money score. However, you must ensure there are no conflicts between funding sources. The grant cannot be used to reimburse expenditure incurred before the grant is awarded. 

If you are a primary school or a maintained nursery school interested in opening or expanding a SBN, but are not eligible or ready to apply for phase 2, you can register your interest via the registration of interest form. This will be available from 24 September 2025 to 5pm 11 December 2025. After the deadline the form will be closed for registrations.

Eligibility

The School-based Nursery (SBN) Capital Grant for 2025 to 2026 is available for eligible state-funded primary-phase schools and maintained nursery schools to apply for up to £150,000 of capital funding to create or expand a school-based nursery. You must meet all the following eligibility criteria in order to complete and submit an application. If you are ineligible for the funding and submit inaccurate or misleading information, this could constitute as fraud, and funding can be withdrawn and/or reclaimed. Please note that Special Schools and Pupil Referral Units (PRUs) will not be eligible to apply for phase 2.

• Previous SBN Grant Participation:You must not have received funding through the SBN Capital Grant 2024- 2025. However, you can register your interest for phase 3. 

• Project Aim:Your project must result in a net increase in the number of childcare places, taking into account any existing provision on site or provision in close proximity including that delivered by external providers. 

• Project Budget:Your project must be deliverable with up to £150,000 of DfE capital funding, including any applicable non-recoverable VAT, however, can exceed that amount if combined with other funding sources. 

• Project Timeline:Your SBN must be operational and offering new childcare places before September 2027. 

• Project Location:Your project must be:  An SBN located on a primary-phase school site that already offers Early Years education (e.g. a reception class), or  Part of a maintained nursery school site. 

• Landowner Permission: You must have written permission from the relevant freehold landowner (e.g. Local Authority, foundation/trust, or religious body) to use the land for nursery provision and carry out the proposed works. 

• Local Authority Approval:You must have discussed your project with the Local Authority’s Planning, Place and Provision (PPP) team and the Early Years (EY) lead (or appropriate delegates) and received formal approval for your project. You will be required to upload copy of a Local Authority Approval Form completed and signed by your LA alongside your application.

Objectives

The objective of the SBN programme is to build capacity in areas of need, especially in deprived areas, enhancing the overall local offer without negatively impacting provision in close proximity, including that delivered by external providers. The Best Start in Life strategy recognises that children growing up in poverty or facing social challenges often lack access to high-quality early education, which can significantly impact their readiness for school and long-term outcomes.

By establishing nurseries within schools in these communities, the programme seeks to provide accessible, nurturing environments where children can thrive from the earliest stages, helping to close the attainment gap and support stronger, fairer futures for all.

Dates

  • Online application service, including registration of interest, opens 10AM 24 September 2025.

  • Recommended date to log in to the online application service to begin submitting your application is 13 November 2025.

  • Deadline for applicants to fully submit applications with all supporting documents is 5PM, 11 December 2025.

  • Applicants notified of outcome, grant letters issued to successful bidders and project initiation April 2026.

  • Projects aim to be operational September 2026.

  • Deadline for capital funding provided to be spent, or the Secretary of State for Education may claw back funds provided 1 September 2027 

Please note this timeline is indicative and may be subject to change

How to apply

You can use the template application form (MS Word Document, 583 KB) to help gather the necessary information ahead of applying for the grant through the online application service.

The online application service will open at 10.00AM on 24 September 2025. Submit your application, including all supporting documents, by 5pm on 11 December 2025.

We will not accept applications made through other routes or after this deadline.

Supporting information

Make sure that you carefully read the:

To apply, your project must meet all the eligibility criteria detailed in the guidance. This includes securing support from your local authority using the local authority approval form (MS Word Document, 389 KB) and obtaining consent from your landlord or relevant freehold landowner where necessary. You need to do this before applying online for funding.