School-Based Nursery Capital Grant – Who Can Apply?
The Department for Education (DfE) has announced phase two of its School-Based Nursery (SBN) Capital Grant programme. This will create or expand a further 300 nurseries opening from September 2026, with £45million set aside in funding.
This phase two funding targets areas of greatest need, for schools/maintained nurseries looking to increase spaces and who operate in a disadvantaged area.
What Is available and who is eligible for the Nursery Capital Grant?
Schools can bid for up to £150,000 in capital funding to create or expand a school-based nursery. Those eligible include:
- Maintained nursery schools for expansions
- State-funded primary schools with a reception class.
With Phase 2, schools are no longer required to use surplus space. This means there is opportunity for schools to create new builds, extensions, or remodel, as long as value for money can be demonstrated.
Eligibility rules
There are strict eligibility rules and schools must not have already received Phase 1 funding. Schools must confirm that their project can be delivered with ≤ £150,000 of DfE capital funding and that the nursery will be operational before September 2027. In addition:
- Their project will deliver a net increase in childcare places.
- The project is on a primary school site with a reception or a maintained nursery school site.
- Written landowner consent is obtained (e.g. diocese, local authority).
- Local Authority approval has been secured.
Grants for Nurseries - How School Based Nursery Grant applications are assessed
With Phase 2 a new scoring framework has been introduced, with emphasis on disadvantaged areas (50%), Local need – 20%, Value for money – 20% and Ofsted judgements – 10%.
Find out more about eligibility criteria and how applications are assessed at the DfE website.
Key dates for your School-Based Nursery Capital Grant application
- Deadline: 11 December 2025 at 5pm
- Funding released: June 2026
- Projects operational: September 2026
Applications must be submitted online with full supporting documentation.
Support available for your Nursery Grant application
With applications requiring extensive preparation, your application needs to be completed quickly to achieve the December deadline.
Given the anticipated high demand, your school will need to provide strong evidence of need, demonstrate the disadvantaged requirement, and submit comprehensive financial documentation.
Free design and budget estimate
At Vertis, we can support your school’s application with a free preliminary building design and budget estimate.
Our school building design expertise means we can create school buildings that are sustainable and energy efficient such as this small nursery building, built for Offley Endowed Primary School to accommodate 15 pre-school children with a WC, within a budget of £150k.
Get in touch with our education building design experts - but be quick as the deadline is fast approaching.