UK Nurseries See Major Government Investment as Thousands of New Places Open in 2026

Government Commitment to Early Years Education

The UK nursery sector is experiencing significant transformation in 2026, as the government has opened 300 new or expanded nurseries on school grounds to support working families. This development marks a crucial milestone in addressing childcare accessibility across England, with schools reporting over 4,000 extra school-based nursery places available this September.

The expansion comes at a critical time for working parents, who have long struggled with the dual challenges of childcare costs and availability. The government is increasing funding for the sector to £9 billion next year to support delivery of quality early years education.

School-Based Nurseries Transform Childcare Access

Phase 1 of the school-based nursery capital grant saw 300 schools receive funding this year to create up to 6,000 new nursery places, making a tangible difference to thousands of families across the country. The initiative focuses particularly on disadvantaged areas where childcare provision has historically been limited.

School-based nursery settings see lower staff turnover, serve a greater proportion of children with SEND and are more prevalent in deprived areas, making them an attractive option for families seeking continuity of care. Backed by £45 million of funding, phase 2 will deliver at least 300 new or expanded school-based nurseries, ready to offer new childcare places in the 2026-27 academic year.

Supporting Working Families and Economic Growth

The nursery expansion directly addresses one of the biggest barriers to employment for parents. Quality, affordable childcare is one of the biggest barriers to work, and for parents with school age children, co-located nursery provision can make daily logistics more manageable.

Formal childcare was used by just under two thirds (64%) of children aged 0 to 4, equating to 1.9 million children in 2024. The new provisions aim to increase these figures whilst maintaining the high standards that characterise the sector, with 96% of early years settings rated by Ofsted as good or outstanding.

Looking Ahead: Significance for Families and the Economy

The investment in nursery infrastructure represents more than just additional childcare places—it signals a fundamental shift in how the UK supports working families. By creating thousands of new school-based nursery places and increasing sector funding substantially, the government is addressing both accessibility and affordability concerns that have long plagued parents.

For families across England, particularly those in disadvantaged areas, these developments mean greater choice, convenience, and the ability to balance work commitments with quality childcare. As the programme continues to expand, it promises to deliver lasting benefits for child development, family finances, and broader economic growth through increased workforce participation.