School-Based Nursery Capital Grant Funding – Phase 3 (2027–2030)

School-Based Nursery Capital Grant Funding – Phase 3 (2027–2030)

North Yorkshire Council – Information for Schools and Early Years Providers

 

The Department for Education (DfE) has released guidance for Phase 3 of the School‑Based Nursery (SBN) Capital Grant, 2027 to 2030: School-based Nursery Capital Grant 2027 to 2030 - GOV.UK. This phase continues to support the national aim of increasing high‑quality early years places, particularly in areas with limited provision or high levels of disadvantage.

 

Programme Overview

Phase 3 is local authority–led, with councils invited to submit multi‑year, strategic proposals to the Department for Education (DfE) to include multiple schools. Funding is intended to support the creation or expansion of early years places on school sites, in areas where a clear sufficiency need has been identified.

Eligible sites include:

  • State‑funded primary schools
  • Maintained Nursery Schools
  • Best Start for Life Family Hubs (BSFHs)
  • Provision delivered directly by the school or by a PVI provider (including childminders) operating on the school site

Not eligible: Special Schools, Alternative Provision (AP), and Pupil Referral Units (PRUs).

 

Projects must:

  • Deliver a net increase in early years places
  • Offer strong value for money, especially in areas of disadvantage
  • Be operational by September 2030

There is no fixed cap per project, though most schemes are expected to cost under £1 million.

 

Key Features of the 2027–2030 Programme

  • Local authority coordination: Councils will lead the development and submission of proposals, ensuring alignment with local sufficiency needs and wider early years strategies, including ensuring sufficiency of places for children with SEND.
  • Multi‑year planning: Funding can support phased or complex projects over several years, but all places must be available by September 2030.
  • Focus on need and value for money: Proposals must demonstrate clear evidence of local demand and deliver new cost‑effective Early Years places.
  • Schools previously funded under Phases 1 or 2 who wish to apply for further funding to expand, must show that Phase 3 proposals create additional places beyond earlier expansions.
  • DfE assessment criteria: Proposals will be ranked primarily on:
    • Deprivation indicators (FSM and IDACI)
    • Value for money (cost per place)
  • Submission deadline Local authorities must submit proposals to the DfE by 5:00pm on 30 September 2026.

 

Opportunities for Schools and Providers

Phase 3 offers opportunities to:

  • Expand existing nursery provision to meet rising demand
  • Create new nursery spaces where schools have suitable accommodation
  • Support integrated early years services through Best Start Family Hubs (BSFHs)
  • Target areas with limited provision or high disadvantage
  • Develop partnerships with PVI providers to operate provision on school sites

Proposals must not displace existing like‑for‑like provision. They should complement the local childcare market and strengthen overall sufficiency.

 

North Yorkshire Council’s Approach

North Yorkshire Council has supported schools through Phases 1 and 2 of the SBN programme:

  • Phase 1: 2 successful school applications
  • Phase 2: 11 successful school applications

For Phase 3, North Yorkshire Council will:

  • Conduct supply and demand mapping to identify priority areas with clear sufficiency need
  • Identify schools within areas where potential new or expanded nursery provision would be feasible and meet need.
  • Reconsider schools that previously applied, or expressed interest in phase 3.
  • Consider any school applications outside of priority areas which may meet the council’s eligibility criteria.

 

How Schools Can Apply or Express Interest

  • Identified schools in priority areas will be contacted directly to discuss the possibility of an application.
  • Previous applications and expressions of interest from schools will be contacted to discuss the possibility of an application.
  • Any school wishing to be considered, and not contacted directly by the Local Authority, may express an interest by emailing EYexpansion@northyorks.gov.uk 

 

North Yorkshire Council will work with all interested schools to:

  • Assess sufficiency need including provision for children aged 0-3 years, children from disadvantaged families and children with SEND
  • Explore feasibility and site suitability
  • Support development of proposals for inclusion in the local authority’s submission