DfE Unveils Phase 2 SBN Capital Grant: Boosting Nursery Places for 2025-26

The Department for Education (DfE) have announced the second phase of the School-Based Nursery (SBN) Capital Grant programme.

The SBN Grant 2025 to 26 is for state-funded primary-phase schools in England that already offer some early education (such as a reception class), seeking to create or expand a SBN, as well as maintained nursery schools in England seeking to expand nursery provision on their current school premises. We have outlined some of the key information below:

Dates to Know:

Applications Open – 22 September 2025
Application Deadline – 5pm on 11 December 2025
Decisions announced – April 2026
Funding released – June 2026
Projects Operational by – September 2027

Do you qualify for this funding?

• Schools that were successful in phase 1 are not eligible to apply
• The project should be on a primary school site with a reception or a maintained nursery school site.
• Special Schools and Pupil Referral Units (PRUs) are not eligible to apply.
• Project must result in a net increase in the number of childcare places (a minimum of five additional childcare places)
• Project must be deliverable with up to £150,000 of DfE capital funding, including any applicable non-recoverable VAT, however this amount can be exceeded if combined with other funding sources.
• SBN must be operational and offering new childcare places before September 2027.
• School must have written permission from the relevant freehold landowner (e.g. Local Authority, foundation/trust, or religious body) to use the land for nursery provision and carry out the proposed works.
• School must have discussed project with the Local Authority’s Planning, Place and Provision (PPP) team and the Early Years (EY) lead (or appropriate delegates) and received formal approval.

Synergy CPC LLP has an excellent track record in supporting our school clients with gaining funding, as well as overseeing the implementation of school’s successful grant funded capital projects. If you believe you may qualify for this funding stream, please contact us on enquiries@synergyllp.com  or via our website Contact – Synergy LLP for more information and assistance with your application.