THE SCHOOL BASED NURSERY CAPITAL GRANT PROGRAMME (ENGLAND ONLY)

Capital grants of up to £150,000 are available to eligible state-funded primary-phase schools and maintained nursery schools in England to create or expand a school-based nursery, with a focus on supporting disadvantaged families to access early years provision.

o Application deadline: THURSDAY 11th DECEMBER 2025 at 5pm. The programme opened to applications on Wednesday 24th September 2025.
o Funder: The Department for Education (the Department for Education (DfE) is a ministerial department of the Government of the United Kingdom. It is responsible for child protection, child services, education, apprenticeships, and wider skills in England).
o Who can apply: state-funded primary-phase schools in England that already offer some early education (such as a reception class), seeking to create or expand a school based nursery (SBN), as well as maintained nursery schools in England seeking to expand nursery provision on the current school premises.
o Key words: Capital, State Funded Nursery Schools, Areas of Deprivation, England.

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 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 department’s 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.

For the purposes of the Fund, SBNs can operate as:

o Nursery classes embedded in a primary school.
o Expansions to nursery classes on the site of current maintained nursery schools.
o Nursery units led by governors or academy trusts, and
o Childminders and private, voluntary, and independent (PVI) nurseries contracted to deliver nursery provision on a school site, or operating on a school’s behalf.

Eligible applicants can apply for up to £150,000 of capital funding to create or repurpose space for nursery provision. While the Department for education encourages 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.

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

The key dates in the applications process are:

1. Online application service, including registration of interest, opened at 10am on Wednesday 24th September 2025.
2. Recommended date to log in to the online application service to begin applying is Thursday 13th November 2025.
3. Deadline for applicants to fully submit applications with all supporting documents is Thursday 11th December 2025 at 5pm.
4. Applicants notified of outcome, grant letters issued to successful bidders and project initiation in April 2026.
5. Projects aim to be operational from September 2026.
6. Deadline for capital funding provided to be spent (or the Secretary of State for Education may claw back funds provided) is Wednesday 1st September 2027.

Applicants 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.
Further information, guidance and details about how to apply can be found on the GOV.UK website.

Contact details for the Department for Education are:
The Department for Education
Sanctuary Buildings
Great Smith Street
London
SW1P 3BT.
Tel: 0370 000 2288 for general enquiries.