New school-based nursery funding – what you need to know

The Department for Education (DfE) has just launched the second phase of its School-Based Nursery scheme, with applications opening on 22nd September.

This round of funding includes £45m to support the creation or expansion of at least 300 new school-based nurseries across England.

Last year, there was a notable rise in the number of primary schools seeking to expand their early years provision. The public benefits of increasing nursery places to meet growing demand from working parents are well documented. For schools, expanding nursery places can create a pipeline of future pupils, as well as help children transition smoothly into reception and year one. In the current climate, DfE funding makes the scheme especially attractive for schools and academy trusts.

What schools and trusts need to consider

While the DfE guidance explains the application process, schools and trusts should also be aware of some important legal steps when making use of this funding.

Updating funding agreements

Academes looking to create new nursery places or expand existing ones will usually need to update their funding agreements to reflect increased capacity or changes to the age range. Although these changes may appear straightforward, they can sometimes prompt wider changes across the trust’s funding agreements, so careful planning is essential.

Working with existing or independent providers

If a school or trust intends to take on an existing nursery provider or share space with an independent provider, the process is more complex. The following steps may be needed:

• Conduct a due diligence exercise to identify any educational, financial or legal risks;
• Manage the transfer of assets and liabilities;
• Ensure employees are transferred to the academy trust in accordance with TUPE regulations. Consider whether the terms of employment for transferring staff should be harmonised with the school’s to avoid a two-tier workforce;
• Obtain permission from the landlord and local authority to use the school site.

How we can help

With extensive experience advising on early years provision, we can guide you through the process and help identify if any changes will affect your trust. Seeking expert advice early can save time and prevent unexpected complications.