Major Nursery Expansion Set to Transform UK Childcare by 2026

Government Investment in Nursery Provision

The UK nursery sector is undergoing significant transformation as the government invites schools to bid for up to £150,000 funding from a £45 million pot to create a further 300 new or expanded school-based nurseries, with places available from September 2026. This major initiative represents a crucial step in addressing childcare accessibility across England, particularly in areas where families need support most.

The expansion comes at a critical time for working families struggling to balance employment with childcare responsibilities. The second phase will prioritise quality bids from schools serving some of the most disadvantaged communities, ensuring that the benefits reach those who need them most urgently.

Addressing Workforce Challenges

Despite positive developments, the nursery sector continues to face significant challenges. 57 per cent of nursery staff reportedly considering leaving the sector, raising concerns about sustainability and quality of care. Industry experts emphasise that around 70% of nurseries are not operating at full capacity as they are carrying an average of four vacancies due to workforce pressures.

The government is addressing these concerns by increasing funding, with the government upping funding for the sector to £9 billion next year to support delivery of high-quality early years education. Sector leaders have called for better pay and career progression pathways to attract and retain qualified professionals.

Impact on Working Families

The nursery expansion programme has far-reaching implications for families and the economy. School-based nurseries offer distinct advantages, including a nurturing and stable environment for children that carries through into primary, and a helping hand for working parents tackling dual drop off. This convenience factor cannot be understated, as many parents currently struggle with logistics of multiple childcare locations.

It will help ease the financial pressure many parents face and enable more, particularly mothers, to return to work or increase their hours, as quality, affordable childcare is one of the biggest barriers to work. By expanding nursery provision in strategic locations, the government aims to boost labour market participation whilst giving children the best possible start in life. The coming months will be crucial as schools prepare applications and families await increased access to vital childcare services that support both child development and parental employment opportunities.