School-Based Nursery Capital Grant 2025–2026: Phase 2 - For Schools

Nursery children The Department for Education (DfE) has launched Phase 2 of the School-Based Nursery (SBN) Grant, offering up to £150,000 in capital funding to eligible schools to create or expand nursery provision on school sites.

Applications can be made online from 22^nd September to 11^th December 2025, and you must seek Local Authority Approval before submitting your application.

Who can apply?

State-funded primary-phase schools in England with existing early education (e.g. reception class).
Maintained nursery schools seeking to expand the current provision on their premises.
Schools that received funding in Phase 1 are not eligible for Phase 2.
Schools unsuccessful in Phase 1 can apply for Phase 2.
The nursery can be operated directly by the school, or it can be outsourced to a private, voluntary or independent provider (PVI) or childminder.

Purpose of the Grant

Support the government’s commitment to expanding early years access, particularly in disadvantaged areas, and forms part of the Best Start in Life strategy
Create or expand a school-based nursery by creating new space or repurposing existing space
Must result in new early years nursery capacity for government-funded childcare entitlements e.g. universal 15 hours, extended entitlement (30 hours) for three- and four-year-olds working parent entitlement, Lewisham2s funding.
New spaces should be ready for the 2026-2027 academic year
Funding is capital funding only
£45million of funding has been allocated to Phase 2

How is Phase 2 different to Phase 1?

There is no longer a requirement to ‘repurpose vacant space’. Phase 1 focused on schools with surplus space that could be repurposed for nursery provision.
Stronger emphasis on building capacity in disadvantaged areas.
Pre-approval from the Local Authority is required before applying online.
Maintained nursery schools are now able to apply
Schools funded in Phase 1 cannot apply for Phase 2
Schools unsuccessful with applications in Phase 1 can apply for Phase 2

How to Apply

Applications must be submitted via the DfE’s online application service (open 22^nd Sep – 11^th Dec 2025 at 5pm)
A template application form is available to help schools prepare.
Applicants must upload a signed local authority approval form to the online application service before they start the application process with the DfE.
Check the terms and conditions of the grant and ensure that you seek all necessary approvals and registration requirements.
See ‘Further Information and Guidance’ below for links and useful information, including the School-based Nursery Capital Grant 2025 to 2026 - GOV.UK
Check for further updates, webinars and information from the DfE.