Labour Party leader Sir Keir Starmer and shadow education secretary Bridget Phillipson during a visit to Nursery Hill Primary School, in Nuneaton, Warwickshire
4 min read
Early years providers could be “discouraged” from taking part in the Government’s push to increase the number of school-based nurseries, the sector has warned.
According to Early Years Alliance CEO Neil Leitch, the arrangement as it currently exists risks not being “long-term” and “secure” enough to convince providers to participate.
The intervention comes as the Labour Government starts to implement its manifesto pledge to create 3,000 new school-based nurseries, after Education Secretary Bridget Phillipson said that the early years were her “number one priority”.
Prime Minister Keir Starmer is also expected to set out plans to boost “school readiness” in a speech on Thursday focused on delivering the Government’s missions.
The first round of applications for schools across England to apply for funding to open new nurseries or expand existing ones opened earlier this term and will close before Christmas on 19 December.
Primary schools can now apply for the first phase of funding, with up to £150,000 of £15m available to support up to 300 new or expanded nurseries to be open from September 2025.
While it is understood that there has been a high level of school interest in the policy, there are concerns that early years providers may be put off taking part in the scheme due to the Government guidance provided to schools.
Neil Leitch, CEO of the Early Years Alliance – the largest early years membership organisation – told PoliticsHome that the current guidance provided to schools could actually discourage existing early years providers from taking part.
Current guidance for schools on establishing school-based nursery provision states: “Leasing surplus space to PVIs [Private, Voluntary and Independent] or childminders can be beneficial, providing early education places and additional income for schools.”
But it cautions that schools “should be mindful” of how long the surplus space is leased for and “whether you will need this space for other purposes in the future”.
The guidance warns that granting a lease “will give [providers] a right of exclusive possession for a fixed term of years” and schools “will not be able to reoccupy this space until the lease expires”.
However, it says that a more flexible option — a license of occupation — could be granted.
“This is a more flexible agreement which does not create an interest in the land and can be more easily terminated. A license grants a licensee a non-exclusive right to use space for specific hours or days and can be used to allow occupation for a period of, for example, up to 12 months.”
Leitch highlighted this part of the guidance as a potential deterrent to early years providers.
“Effective partnerships between schools and early years providers must play a central role in government plans to use schools to expand early years provision,” he told PoliticsHome.
“However, we are concerned that current guidance risks discouraging providers from being involved.
“In particular, the fact that the guidance contains little protection to prevent schools from asking for the space back – and in turn asking the provider to close their provision – is especially worrying.
“Given that providers are already facing a wide range of significant challenges – including years of underfunding and an acute staffing crisis – the need for stability when opening new provision has never been more important.
“As such, if this policy is to have any chance of alleviating the sector’s capacity challenges, guidance must reflect the fact that any partnerships between schools and providers are both secure and long-term. “
It comes after PoliticsHome revealed that the Early Years Alliance had written to Chancellor Rachel Reeves outlining the sector’s concerns in the aftermath of the Budget in October.
The sector warned at the time that the Treasury must make the sector exempt from National Insurance changes or commit to fully funding them, otherwise its wish that every family should be able to access affordable early education “will be nothing more than a pipe dream”.
A Department for Education Spokesperson told PoliticsHome: “We are committed to breaking the unfair link between background and opportunity, starting with a reformed, sustainable early years system that ensures every child gets the best start in life.
“We are making progress at pace with our commitment to deliver thousands of new school-based nurseries, and continue to work closely with local authorities, schools and providers to make sure that the right support is in place for them to deliver the high-quality and sustainable early education places that parents deserve.”
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