£45m nursery expansion targets schools in deprived areas

Schools in England with higher levels of disadvantage and strong Ofsted ratings will be prioritised in the next round of government funding aimed at expanding nursery provision.

The Department for Education (DfE) has launched the second phase of its capital investment programme, inviting primary schools to apply for a share of £45 million to create or expand nurseries in unused classroom spaces.

Schools can apply for up to £150,000 each, with the goal of creating around 300 new or expanded nursery classes offering up to 7,000 additional places by September 2026.

The funding follows last year’s £37 million allocation, which supported the creation of 300 nurseries on school sites. According to the government, 189 of those are expected to be operational this month.

In this latest round, the DfE has updated its eligibility criteria. Applications will now be scored using a points-based system that considers both the proportion of pupils eligible for free school meals and the school’s Ofsted grade. For example, schools located in the 10% most deprived areas in England will receive the highest score for disadvantage, while those rated ‘Outstanding’ by Ofsted will also rank highly.

Value for money and local need will still be considered, but no longer form the sole basis for funding decisions.

Education Secretary Bridget Phillipson said: "The change we have delivered for working people this September is just the beginning - through our Plan for Change we are determined to give more children the best start in life.

"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."