Schools wishing to open or expand nurseries will be invited to bid for a second phase of funding later this month, the government has announced today.
Up to £150,000 will be available to each applicant, which the Department for Education said will create a further 300 new or expanded school-based nurseries, and 7,000 more places, from September 2026.
The second phase will prioritise quality bids from schools serving “some of the most disadvantaged communities”, the government said.
Updated guidance for potential bidders shows that the DfE will now look at the proportion of pupils on free school meals and what the school’s Ofsted judgement is.
This was also the case in the previous round, in which the proportion of pupils receiving free school meals at successful bidders fell slightly below the national average - although the DfE said at the time that it was using the IDACI measure (Income Deprivation Affecting Children Index).
Around two-thirds (189) of the 300 school-based nurseries due to open or expand as part of the first phase will be launching this month.
Bidding to close on 11 December
Education secretary Bridget Phillipson said that school-based nurseries can offer a “nurturing and stable environment for children that carries through into primary, and a helping hand for working parents tackling dual drop-off”.
“Delivering more school-based nurseries - under our Best Start umbrella - means more choice and convenience for parents, and more opportunities to target parts of the country where families are most in need of additional support,” Ms Phillipson said.
Schools will be invited to submit bids for up to £150,000 from September 22. The bidding round will close on 11 December, with successful schools to be announced in April 2026.
The scheme has been broadly welcomed by the sector, although education leaders have warned schools not to jump into early years provision “glassy-eyed”.
However, Purnima Tanuku, executive chair of the National Day Nurseries Association (NDNA), warned that the first round of school-based nursery funding “displaced a number of established nurseries that were already running on, or next to, school sites”.
“Using public money to displace existing providers went against the policy of creating new places,” Ms Tanuku said.
