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Capital Funding for Early Entitlement Expansion

WE DO APOLOGISE, BUT THE CAPITAL FUNDING IS NO LONGER AVAILABLE AS THE FUNDING HAS ALREADY BEEN DISTRIBUTED TO PROVIDERS - THANK YOU.

What is Capital Funding?

Capital funding is money available via the Local Authority to support the expansion of funded childcare places for under-5s.

Why has this funding been made available?

In March 2023, the government announced an expansion of funded childcare provision in its Spring Budget.  From September 2025 working parents will be able to access 30 hours of funded provision, for 38 weeks a year, from the term after their child is 9 months old to when they start school. The Department for Education (DfE) has allocated funding to local authorities to support the local delivery of the expanded childcare. 

Who can apply for the funding?

  • private, voluntary, independent (PVI) settings
  • schools
  • childminders
  • childcare on domestic premises

Providers must be:

  • registered with OFSTED
  • registered with the Local Authority to provide funding childcare
  • rated Good or Outstanding or Met by OFSTED

New providers can apply but their application must demonstrate how they will work towards achieving and maintaining quality of provision.

What can the funding be used for?

The funding must be used for ‘capital’ projects that create additional capacity for funded childcare. 

To be considered capital expenditure, the asset must bring an economic benefit and must continue to be in a useable state for more than one financial year. 

Examples:

  • Building work to deliver additional, inclusive, early years funded childcare places
  • Remodelling existing space, for example to improve or secure access to previously unused spaces
  • Improve storage to enable indoor space to be used more effectively in the delivery of additional funded childcare spaces
  • New physical assets such as additional tables, chairs, changing facilities

All projects must create new early entitlement capacity.

Projects that increase access to places for children from financially vulnerable backgrounds, such as those claiming ‘Lewisham 2s’ funding (also known as disadvantaged two year old funding) or children with SEND will also be considered.

What can’t the funding be used for?

The funding is not to be used for:

  • revenue expenditure of any kind -This means, for example, training, staff costs, rent, books, toys, clothing 
  • improving the quality of existing provision
  • general maintenance
  • repairs and refurbishment
  • general decoration
  • childcare providers not providing Early Years entitlements

What it the process for making a funding application?

  • Submit an expression of interest using the following link: https://forms.office.com/e/6xeYwGCJd7
  • You will be contacted by a member of the Early Years team and sent a link to the application form, with guidance notes
  • Complete the online application form and email all supporting documents / evidence
  • A site visit will be conducted to assess the area for the proposed development
  • Application will be reviewed and further information or documentation may be required
  • Application will be evaluated by the Early Entitlements Extension and Wraparound Grant Approval Panel
  • Panel decision will be notified to you by email
  • Any grant awarded will be paid to you as per the terms outlined in the application form
  • Follow up visits will be arranged to monitor progress and to ensure any funding awarded is being used according to the grant terms and conditions and as intended in an approved application. For example, the Council may need to verify that works are taking place as described in the application, that any specific requirements have been met, that equipment has been purchased in accordance with what has been approved, or to verify that the agreed number of places and type of places are being offered.
  • Please refer to the question-by-question guidance for completing the form for further information

What is the approval process for the funding and what criteria do projects need to meet?

All applications will be reviewed and assessed by the Early Entitlements Extension and Wraparound Grant Panel. 

An initial review will be made by a member of the Early Years team, who will check that all the requested information has been provided and ask any additional questions.

When evaluating each application, the following aspects are considered along with the details of the project itself:

  • Childcare sufficiency in the area
  • Demand for childcare in the area
  • The number of places being offered
  • The type of places being offered

The Panel will consider the needs of the local community and will consider projects that will adapt or improve facilities to make places available for a wider range of needs (for example to children with special educational needs and disabilities).  The Panel will also consider projects that create additional capacity for ‘disadvantaged two-year-olds’ – now known locally as ‘Lewisham 2s’. 

Funding is available on a ‘first come, first served’ basis for applications that meet Panel approval. 

Funding is limited, and it is unlikely that any funding awarded will meet the total sum of money requested by an applicant.

Please read the question-by-question guidance for further information on completing the form. 

Can you give some more examples of the types of project that could be considered?

Examples of types of projects we would consider:

  • Purchase of tables, chairs, changing facilities etc. to accommodate additional places that you have space for, but don’t have the facilities for
  • Adapting an existing room that is either unused or used for storage, for example, so that it is suitable for childcare and so more spaces can be added
  • Putting a modular building in an outside space
  • Projects that enable and/or increase access to childcare places for eligible children
  • Projects that adapt, re-model or improve existing childcare places to make them suitable for a wider range of needs
  • Central capital works required to enable delivery of the entitlement

 If you have an idea that you would like to discuss then please contact Lucy Clarke lucy.clarke@lewisham.gov.uk

How long will the process take?

This all depends on the complexity of your project, how quickly you can fully complete the application form and how quickly you provide all the required supporting information and documents.  There is usually a lot of back and forth before an application is ready to go to Panel, and so please read the guidance notes, speak to Lucy (lucy.clarke@lewisham.gov.uk) before you submit an application and complete everything with as much detail as possible.

We aim to turn applications around as quickly as we can, but please bear in mind that we are processing many applications. 

The panel meets regularly, and in some cases a decision is made straight away, and in some cases, the panel may have more questions. 

Funding is available on a first come, first served basis, for projects that meet the eligibility criteria and include all requested supporting and supplementary documents.  You should aim to complete your application as soon as possible, before all of the funding has been awarded.  The intention is for spaces to be available for September 2025.  We are now at the end of the Capital Funding process and there is only a small amount of funding left, so please bear this in mind if you are considering making an application – the money could go at any time and may well be used up by the time your application goes to Panel.

If any funding is approved, we aim to make the payment as soon as we can, as long as you are already set up as an Eligible Provider. 

Sometimes, a decision may be delayed until certain assurances or permission have been given.  For example a building project may need planning approval from the Council.  In these cases, expect the process to take longer. 

Please click here for the full guidance document and click here for the checklist of items required.

If you are interested in applying for the funding, or would like to find out more, please contact Lucy Clarke lucy.clarke@lewisham.gov.uk and submit your Expression of Interest here:  https://forms.office.com/e/6xeYwGCJd7