Synergy News & Blog: News
Phase 2- School-based Nursery Capital Grant 2025 to 2026

The Department for Education (DfE) announced the second phase of the School-Based Nursery (SBN) Capital Grant programme on September 4th 2025. Phase 1 of the programme, which launched last year, funded 300 new or expanded nurseries.
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 an 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
Who is Eligible?
- Schools that were successful in phase 1 are not eligible to apply
- The project is 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, can exceed that amount 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.
How Applications Will be Scored:
The bid will be scored based on the following criteria. There is a strong focus on deprivation this year with 50% of the application score calculated using two metrics to assess the level of disadvantage i.e. FSM and IDACI.
- Disadvantaged –50% of score – calculated by two metrics to assess level of disadvantage i.e. FSM and IDACI
- Local Need – 20% of score – Score calculated by integrating the following two metrics to assess the supply and demand for early years childcare in your local area i.e. Eligibility code validation data and Ofsted accessibility data.
- Value for Money – 20% of score – Project costs should be within an appropriate cost range for the number of places being delivered and the space being developed. Value for money will use a weighted scoring system that takes into account various factors.
- Ofsted Key Judgements –10% of score – Score based on your school’s most recent Ofsted judgements for Leadership and Management and Early Years Provision as published on 11 December. If a judgement for Early Years Provision is not available, the Quality of Education judgement will be used instead.
Project overview, local need, approach to education and management of provision will be assessed on a pass/fail basis.
We have 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 for more information and assistance with your application.