Leaders are calling on councils to keep working closely with schools to provide new nurseries, after it was announced that they would take the reins of the government’s scheme. The schools-based nursery capital programme provides grants to allow primary schools to repurpose empty classrooms and use them for early-years provision. The government recently announced that a second wave of 331 schools will be awarded a share of £45 million in funding to open new nurseries. But the DfE decided that, from May onwards, councils will make bids on these projects rather than schools, as the programme moves to a “locally led model”. It comes after government research found school nurseries lack the staff, space or demand to offer more wraparound, holiday or pre-school childcare, particularly in poorer areas. School leaders said they recognised the change to the scheme would create “greater coherence” locally and allow councils to plan for future demand. But they stressed that schools should remain part of the process to avoid creating “further distance” between decisions and day-to-day realities for early years. Councils will be able to develop multi-year proposals for 2027-30 to create or expand schools-based nurseries in state primaries or maintained nursery schools, according to the latest guidance. But, in a change to the scheme, family hubs will be able to host nurseries for the first time, though they will have to show they have “strong links” to local schools. ‘Risk’ concerns James Bowen, assistant general secretary at school leaders’ union the NAHT, said: “Asking local authorities to take the lead when it comes to proposing additional places could help to ensure that they are created where they are most needed. “Such an approach should also lead to greater coherence at a local level.” But he added that it “will be vital that councils work closely with all providers, including schools, to understand the capacity that exists and where expansion might be desirable and possible”. James Bowen The DfE said it changed its approach in its latest guidance to reflect “the multi-year nature” of the next phase of the programme. It said the change would bring several benefits, including enabling “long-term decision-making and planning”, with councils able to consider future demand. It will also allow councils to use their “expertise and data on local need”, and to align with their statutory sufficiency duty to provide early years and school places. Lucy Fox, assistant headteacher and head of foundations at Stoke Primary School, said there was a “clear benefit to local authorities taking a strategic overview of provision. “However, there is also a risk of creating further distance between decision making and the day-to-day realities of early years practice when these links are not built.” Fox said schools “understand the needs of their communities in a very immediate way, and that insight is crucial when developing high quality provision for all. “The strongest school-based nurseries are those that work in close partnership with local authorities, where there is a shared understanding of the community and the gaps in provision.” Lucy Fox While schools could apply for grants worth up to £150,000, there will be no cap on how much funding councils can apply for per project, which could range from light refurbishment to constructing new buildings on existing sites. According to the DfE’s guidance, this is to allow them to meet local need, although they must deliver “good value for money”. ‘Include childminders’ Brett Wigdortz, founder and CEO of childminder agency tiney, said: “We have had many encouraging conversations with school leaders about our partnership model, but the biggest blocker to wider progress has often been a lack of awareness about what’s possible. “So, for this change to make a tangible difference, the DfE must promote and explain the programme clearly at a local level and ensure both schools and councils have clarity on the full range of provision they can host – and that should include childminders.” Brett Wigdortz He said that schools had the potential to add more much‑needed, convenient childcare options into the mix, particularly in deprived areas. “We are already seeing the difference these can make in local communities from our own partnerships, so it’s important this isn’t framed as a nurseries‑only opportunity. “Childminders can – and increasingly do – deliver high‑quality early years provision from school sites, often in spaces that are too small to convert into a full nursery.” Councils must submit their funding proposal by September 2026. They should find out the outcome of their bids by spring 2027 to allow nurseries to open from September 2027, but these timescales are subject to change.