School-based Nursery Capital Grant funding extended to maintained nursery schools

We’re pleased to confirm that after extensive lobbying from Early Education, the DfE has extended eligibility for the School-based Nursery (SBN) Capital Grant Funding to maintained nursery schools in the second phase of the programme. Application guidelines have been published and the scheme will open for applications on 22 September, with applications closing on 11 December. If unable to submit an application during phase 2, it will be possible to register interest for phase 3, which will be for local authorities to submit bids for multi-year funding.

The guidance states that:

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.

Schools can apply for up to £150,000 of capital funding to create or repurpose space for nursery provision. Unlike phase 1, the use of surplus space is not a requirement for phase 2 of the programme.

The DfE have stated that “Maintained Nursery School (MNS) bids will be assessed using the same criteria and process for all other bids. In the event of receiving a high number of quality MNS bids, the Department will allocate funding to the highest scoring bids up to a maximum total value of £4.5 million.”

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