Skip to content

Childcare Reforms - Capital Funding

Capital Funding applications now open for additional childcare places

As part of the governments childcare reforms to help parents balance work and family life, extended entitlements for funded childcare were introduced to be delivered in phases from April 2024 – September 2025.

To support the expansion of available childcare places to meet this increased demand, we are pleased to announce that applications for capital funding are now being accepted.

Application review and prioritisation

All applications received will be thoroughly reviewed by the local authority. To address the most urgent needs, we will initially prioritise applications delivering childcare in the following areas of the city, where forecasting data has identified the largest shortfall of childcare places:

Planning Areas 6 North, 1 North & South, 2 South

Applications that include childcare places for children aged 9 months to 2 years and/or support local schools with wraparound childcare before and/or after school will be particularly welcome. Applications from other parts of the city where demand is evidenced by the childcare provider are also welcome. Previous unsuccessful applicants are invited to reapply.

How to apply

Your commitment to providing excellent childcare services is invaluable, and we appreciate your continued efforts to support the childcare needs of families in our city.

Business Case and evidence – Submission deadline 20th January 2025.

  • Applications to be considered against full criteria overleaf by a panel of LA officers including finance and sufficiency officers.
  • Should eligible applications exceed the amount of funding available funding will be targeted according to the LA’s assessment of demand and value for money in terms of how many additional places will be created.
  • Funding will be allocated to projects that will deliver the maximum number of places in the areas of greatest need.
  • Successful applicants will be required to sign an individual Capital Grant agreement which will set out terms and conditions, including that:
    • Providers will be required to procure their own contractors to undertake any works and will be responsible for assessing quality and legal compliance.
    • Providers will be required to provide project updates/monitoring information to the LA on request, which in turn will be provided to the DfE.
    • Funding may be clawed back in the event the project is not completed or should the grantee not meet the agreed terms and conditions.

 

Criteria:

Applications will be accepted from all setting types i.e.group childcare settings and childminders.

1.    Application must be for a Capital project (see examples of suitable projects)

·       To be considered for capital expenditure the asset must bring an economic benefit, and be able to be depreciated, over more than one budget year.

2.    Demand

·       application should demonstrate that demand exceeds places available.

·       Application should show awareness of other provision in the local area and evidence that expansion will not negatively impact other local providers).

3.    Quality

·       For extended FEL, provision should be Ofsted rated as Good or Outstanding. In the case of expansion of existing independent out of school clubs, they should have an Ofsted rating of “met”. All schools are required to support their communities to access wraparound so applications from schools not rated as good will be considered subject to the authority being satisfied that safeguarding standards will be met.

4.    Inclusivity

·       Places created should be accessible to all children, including those with special educational needs and disabilities.

5.    Value for money

·       The project should detail the number of additional places to be delivered and cost per place will be considered. Value will be determined according to local average for the provision type.

6.    Viability

·       The project should evidence that once created the setting will be financially sustainable, however in the case of wraparound projects this is less important, and the programme is about evaluating the market and seeing what works so more leniencies will be attributed to projects that cannot evidence viability at this time.

DfE Guidance and examples of suitable projects.

The funding will be utilised to provide new places in the full range of Ofsted registered provider types.

DfE Guidance provides further details and examples of types of projects deemed suitable, as follows:

Examples of appropriate early years projects:

  • Projects that enable and/or increase access to childcare places for eligible children particularly for children under 2 years old.
  • Projects that adapt, re-model or improve existing childcare places to make them suitable for a wider range of needs.

These could be achieved through:

  • Expansion of existing childcare provision, including expanding existing provision to a different or additional site.
  • Remodelling of existing provision to create additional capacity.
  • Creation of new childcare places, whether via the creation of new settings, or expanding provision in existing providers.

Examples of appropriate wraparound projects:

  • Projects that enable the creation of new wraparound places and/or increase access to wraparound places (where suitability of space may be a concern).
  • Projects that adapt, remodel, or improve existing wraparound provision to make them suitable for a wider range of needs.
  • Purchasing fixed assets required to deliver wraparound provision. These could be achieved through:
  • Building modifications to enable use of space outside main school/setting operating hours, e.g., secure external access, outside lighting to enable outdoor space intended for year-round use.
  • Building modifications to adapt space for use to deliver inclusive wraparound childcare.
  • Improvements to storage.
  • New physical assets such as minibus purchase (to support a hub model of wrapround provision), play equipment (including outdoor play equipment), or tables and chairs.
Last updated:
Previous Wraparound Childcare