School based nurseries

• School based nurseries phase 3

  New guidance has been published for Phase 3: School-based Nursery Capital Grant 2027-2030

  The approach for phase 3 is a local authority-led model which will deliver provision over multiple years. Ten schools were shortlisted and have been contacted to ask if they wish to be part of Phase 3.

  We recommend that you read the guidance:

  In phase 3, local authorities have a greater role to lead the programme in alignment with their duty to secure sufficient childcare places.

  From 4 February, we [the Department for Education] are inviting local authorities to develop multi-year funding proposals to deliver new and extended SBNs between 2027 and 2030, with the first places available from September 2027.

  This builds on the success of earlier phases of the programme, giving local authorities the opportunity to work with key stakeholders to develop strategic plans for SBNs in line with their local need.

  Local authorities can apply for funding for SBN projects in state-funded primary schools, maintained nursery schools and on Best Start Family Hubs (BSFH) sites. Schools and BSFHs can partner with private, voluntary, and independent providers (PVIs) and childminders to deliver nursery provision.

  To allow local authorities to put forward proposals that meet their local need, there will be no cap on the amount of capital funding they can apply for per SBN project for phase 3, although projects must deliver good value for money.

  Funding proposals must be submitted by 5pm on 30 September 2026.

• Department for Education guidance

  Establishing school-based nursery provision  

  Early years school-based nursery provision operating outside of the typical model
  A look at different childcare operating models for school-based nurseries offering non-typical provision, how they are run and the guidance and support offered. 

  Early years provision: onsite nursery on a Best Start Family Hub site
  How a Best Start Family Hub integrates early-years education alongside other wider family support. 

  Early years provision: new preschool class within an existing space
  How the School-based Nursery Capital Grant funding helped a primary school to repurpose an existing space to create a new preschool class 

  School based nurseries – Information for childcare providers

• Background information

  What is a school based nursery?

  A school-based nursery is an early year’s setting that operates within a primary, infant or nursery school.

  It is located on the grounds of a school, often with dedicated internal and external areas. It is run by qualified early years practitioners who follow the Early Years Foundation Stage (EYFS) framework, like other nurseries, preschools, childminders and reception classes in England. Eligible children can use their funded early education hours there. Funding is based on the take up of places and hours.

  Provision for children under two requires a separate Ofsted registration.

  It might be run by the school or through an external provider that operates from the school site.

  Why is the Department for Education (DfE) providing grant funding?

  The grant funding for school-based nurseries is about increasing access, supporting disadvantaged families, making best use of school resources, and ensuring more children benefit from high-quality early education—especially where it’s needed most.

• Key considerations

  Is the project needed?

  • What challenges do the local community experience that could be alleviated by new or expanded early years provision?
  • Have you consulted an identified a need for the places?
  • Are you oversubscribed?
  • Are parents asking for different provision than is available?
  • Have governors/trustees received ‘Rights to Request’ from parents to create childcare?
  • Does data show a need for places?
  • Have you got spare capacity within the school?
  • Are school numbers in decline?
  • Does the Local Plan identify housing developments?
  • Are you on a travel to work route and can attract parents who are passing the school?
  • How does the proposal fit within the schools development plan?

  What services are you proposing to offer?

  • Most of Devon needs more places for babies.
  • Demand is for all year-round provision.
  • Will you take under 2 year olds, 2 year olds and/or three and four year olds?
  • Can you create more places?
  • Can you open for longer hours and more weeks?
  • Will the early years provision grow out of/ support and help sustain wraparound and holiday childcare for primary children?
  • Will you work with other providers to ensure all the hours local families need are available within the community through a collaborative approach to delivery?

  Where will the early years places be accommodated?

  • Have you identified space in the school for the nursery places?
  • Have you thought about the outside space as well as inside?
  • Do you need to extend the school building?
  • Will it need to be repurposed?
  • Will the provision be off the school site?
  • What impact will the project have on the rest of the school?

  Who is involved with the proposal?

  • Are all the right people involved?
  • Have governors and Trustees approved the proposal?
  • Is the early years team developing a vision for the new places?
  • Do you need to call in support from elsewhere? (support from the locality teams is available)
  • Does the Diocese need to be consulted?
  • Can what you are proposing be delivered – has a surveyor or building professional seen the proposal?
  • Has the landowner given their consent for the project (if applicable)?

  When?

  • When will the new places be available?
  • When can the project begin?
  • Is that achievable?
  • How does the timing relate to the demand?

  How will the service be delivered?

  • Will the age range be extended?
  • Will a governor run preschool or nursery be set up?
  • Will a trading arm/subsidiary company be set up?
  • Will a provider be invited onto the school site?
  • Will it be part of a Foundation Stage Unit where reception (and Y1?) are integrated with nursery children?
  • Who will have responsibility for the provision?
  • What staff are required? Will you need to recruit?

  How much will the project cost?

  • Do you know how much the proposal will cost to deliver?
  • Have you factored in everything?
  • Have you determined whether the size and number of places proposed will fit into a sustainable staffing model?
  • Can you contribute other funds to the project?
  • Is the proposal part of a larger phased project?
• Information, guidance and support

  From the DfE:

  • School-based nursery capital grant 2027 to 2030 – GOV.UK
  • Establishing school-based nursery provision 
  • Government delivers thousands more school-based nursery places 
  • Best Start in Life
  • Early Years Foundation Stage (EYFS) Framework
  • Early Years Foundation Stage nutrition
  • Making significant changes (‘prescribed alterations’) to maintained schools
  • Making significant changes to an academy 
  • Information for Schools – childcareworks.org.uk
  • Registering and inspecting school-based early years provision – childcareworks.org.uk

  About Ofsted registration:

  Local authorities have a statutory duty to provide support on registration requirements and processes. 

  As a general rule, if a school takes children under the age of two, they must have a new Ofsted registration for that service.

  • Registering and inspecting school-based provision – GOV.UK
  • Ofsted’s application review guidance sets out what to expect after schools have submitted their application form.

  About early years funding for under fives:

  • Early Years Entitlement Funding for Under 5s – Information for childcare providers 

  Contacts:

  All correspondence with DCC must be through SBN@devon.gov.uk

  You can submit an enquiry to the DfE through the customer services portal

  Once DCC approval has been given, schools may benefit from the following support:

  • Early Years and Childcare Advisers (EYCAS) will support schools to register with Ofsted. Please note that we are part way through a redesign; job titles and areas the team cover may change. This webpage will be updated in due course to reflect any changes.
  • Maintained schools may be required to complete a financial and business plan. Please contact your Schools Finance Officer and EYCAS.