The Department for Education has announced the launch of the School-Based Nursery Capital Grant 2027–2030 programme, providing a significant opportunity for schools, multi-academy trusts and local authorities to expand early years provision and increase access to childcare places.
With a continued national focus on improving childcare availability and supporting working families, this latest funding programme aims to create additional nursery places through the development of new school-based nurseries and the expansion of existing facilities.
What Can the Funding Be Used For?
The funding is intended to support capital projects that increase nursery capacity, including:
- The creation of new school-based nursery provision
- Expansion of existing nursery facilities
- Associated building and refurbishment works required to accommodate additional places
One of the most notable aspects of this funding round is that, unlike previous phases of the programme, there is currently no fixed cap on project funding. Instead, applications will be assessed based on the need for places and the value for money offered by each proposal.
Who Can Apply?
Applications must be submitted by local authorities, meaning schools and trusts interested in accessing funding will need to work collaboratively with their local authority to develop suitable proposals.
This makes early engagement particularly important, allowing sufficient time to identify suitable projects, establish local demand and develop a robust business case.
The deadline for local authority submissions is 30 September 2026.
Why This Matters
Many schools are increasingly exploring opportunities to expand their early years offer, whether to better serve their local communities, support pupil recruitment pathways or make more effective use of existing estate assets.
The School-Based Nursery Capital Grant provides an opportunity to secure investment that may otherwise be difficult to fund through existing school budgets.
For schools with underutilised accommodation, surplus space or sites that could accommodate additional provision, this funding could unlock projects that deliver long-term benefits for both children and the wider community.
Key Considerations Before Developing a Proposal
Whilst the funding opportunity is welcome, successful projects will require careful planning and evidence gathering.
Schools and trusts should consider:
- Current and projected local demand for childcare places
- Suitability of existing accommodation
- Estate capacity and future strategic plans
- Planning and site constraints
- Accessibility and safeguarding requirements
- Project costs and value for money
Developing these considerations early can help strengthen proposals and support discussions with local authorities.
How Education Consultancy Services Can Help
At Education Consultancy Services, we support schools, trusts and local authorities with the planning, development and delivery of capital projects across the education sector.
Our team can provide support with:
- Feasibility studies and option appraisals
- Condition and suitability assessments
- Estate strategy reviews
- Funding and bid development support
- Project planning and delivery advice
- Design team and project management services
If you are considering expanding your early years provision or would like to explore whether your site may be suitable for this funding opportunity, we would be pleased to discuss your plans and help you assess the options available.