The School-based Nursery Capital Grant 2027–2030 is a capital funding programme from the Department for Education supporting local authorities to expand or create school-based nursery provision.

Delivered through Phase 3, the programme funds new or expanded nursery spaces in eligible state-funded primary schools, Maintained Nursery Schools, and Best Start Family Hubs to improve access to affordable, high-quality early education, particularly in disadvantaged areas and for children with SEND.

Local authorities must submit multi-year capital proposals demonstrating value for money and increased nursery capacity.

The School-based Nursery Capital Grant 2027–2030 provides non-statutory guidance and capital funding to help local authorities expand early years infrastructure across England.

The programme supports the government’s wider ambition to increase access to affordable, high-quality childcare and improve school readiness outcomes.

Programme Purpose and Strategic Objectives

The grant focuses on:

• Expanding early education and childcare provision

• Supporting disadvantaged communities

• Improving school readiness

• Increasing access for children with special educational needs and disabilities (SEND)

• Enabling inclusive nursery environments

• Strengthening grassroots early years provision

• Supporting multi-year capital investment planning

The overarching goal is to ensure more children benefit from high-quality early education before starting reception.

Who Can Apply?

Eligible applicants:

• Local authorities in England (Phase 3 delivery leads)

Local authorities must submit multi-year funding proposals outlining plans to create or expand nursery provision.

Individual schools cannot apply directly under Phase 3.

Eligible Delivery Settings

Projects must be delivered in one of the following eligible settings:

1. State-funded primary schools

2. Maintained Nursery Schools

3. Best Start Family Hubs (meeting eligibility criteria)

School-based nurseries may operate as:

• Nursery classes embedded within primary schools

• Expansions of nursery classes at Maintained Nursery Schools

• Nursery units governed by Maintained Nursery Schools

Ineligible Settings (Phase 3)

The following settings are not eligible under Phase 3:

• Special Schools

• Alternative Provision

• Pupil Referral Units

However, inclusivity improvements within eligible nursery environments are strongly encouraged.

What Can the Funding Be Used For?

The grant supports capital expenditure only.

Eligible uses include:

• Creating new nursery spaces

• Expanding existing nursery provision

• Repurposing existing rooms or areas

• Refurbishment works

• Construction projects

Using surplus space is encouraged but not mandatory.

Project costs may range from small refurbishments to large-scale construction, depending on local need and scale.

Combining Funding Streams

Local authorities may:

• Combine this grant with other funding sources

• Coordinate with high needs provision allocations

• Strengthen affordability through blended capital funding

There must be no conflict between funding streams.

Priority Groups and Policy Focus

The programme emphasizes supporting:

• Children in disadvantaged areas

• Harder-to-reach families

• Children with SEND

• Communities with limited access to affordable childcare

Projects should demonstrate how expanded nursery provision improves access and inclusion.

Reapplications and Previous Funding

Schools or sites funded in earlier phases may apply again if:

• The new proposal delivers additional nursery places

• The project demonstrates clear value for money

• The expansion meets current eligibility requirements

Repeat funding must result in measurable capacity growth.

Why This Grant Matters

The School-based Nursery Capital Grant is significant because it:

• Expands early years infrastructure

• Improves childcare accessibility

• Supports school readiness outcomes

• Promotes inclusive nursery environments

• Strengthens family support networks

By investing in physical capacity, the programme addresses long-term early years demand.

How Phase 3 Works – Step-by-Step Process

Step 1: Needs Assessment

Local authorities assess:

• Early years demand

• Gaps in nursery provision

• Disadvantaged area coverage

• SEND capacity requirements

Step 2: Develop Multi-Year Capital Proposal

The proposal must outline:

• Number of new nursery places

• Type of capital works required

• Project timeline (2027–2030 period)

• Budget breakdown

• Value for money assessment

Step 3: Identify Eligible Sites

Confirm delivery within:

• State-funded primary schools

• Maintained Nursery Schools

• Eligible Best Start Family Hubs

Step 4: Plan for Inclusion

Demonstrate:

• Inclusive design

• SEND accessibility

• Community reach

• Alignment with early years strategy

Step 5: Submit Proposal to the Department for Education

Proposals must comply with Phase 3 guidance and submission requirements.

Common Mistakes to Avoid

• Proposing projects in ineligible settings

• Failing to demonstrate additional nursery capacity

• Submitting unclear cost justifications

• Overlooking SEND and inclusivity considerations

• Not demonstrating value for money

Strong proposals are evidence-based, demand-led, and clearly aligned with programme objectives.

Key Definitions

School-based Nursery: Early years provision delivered within or governed by a school setting.

Maintained Nursery School: A state-funded nursery school maintained by a local authority.

Capital Funding: Investment in physical infrastructure, construction, or refurbishment rather than operational costs.

SEND: Special Educational Needs and Disabilities.

Best Start Family Hub: A community-based site providing integrated early years and family support services.

Frequently Asked Questions (FAQs)

1. Who can apply for the School-based Nursery Capital Grant?

Only local authorities in England can apply under Phase 3.

2. Can individual schools apply directly?

No. Applications must be submitted by local authorities.

3. What types of projects are eligible?

Projects creating or expanding nursery provision within eligible state-funded settings.

4. Can funding be used for operational costs?

No. The grant supports capital costs only.

5. Are Special Schools eligible?

No. Special Schools, Alternative Provision, and PRUs are not eligible under Phase 3.

6. Can funding be combined with other sources?

Yes, provided there is no funding conflict and value for money is demonstrated.

7. What is the main goal of the programme?

To expand affordable, high-quality early education access and improve school readiness.

Conclusion

The School-based Nursery Capital Grant 2027–2030 provides strategic capital investment to expand early years infrastructure across England.

By funding new and expanded nursery spaces in eligible school and family hub settings, the programme improves access to quality childcare, supports disadvantaged communities, and strengthens inclusive early education systems.

Local authorities that demonstrate clear demand, strong value for money, and inclusive design will be best positioned for successful funding approval.