School & Early Years Funding: The Complete Cosy Guide

The government has now funded over 630 new or expanded school-based nurseries across England. Almost £325 million more is committed through to 2030. Whether your school has just received Phase 2 funding - or you're planning for Phase 3 - Cosy is here to help you create a space children will thrive in. And we'll design it for free. For more information and guidance on establishing school-based nursery provision click here or contact one of our experts.

Phase 1 - Complete

300 Schools | £37 Million

Closed. Nurseries opened September 2025. Up to 6,000 new places created.

Phase 2 - Act Now

331 Schools | £45 Million

Schools confirmed 22 March 2026. Nurseries must open September 2026. Fit-out needed now. Find out more information below.

Phase 3 - Coming

£325 Million | 2027–2030

LA proposals due 30 Sep 2026. Nurseries open from Sep 2027. Start planning now.

Congratulations. If your school has just been confirmed for Phase 2, you're one of 331 schools sharing £45 million to create or expand a school-based nursery.

Your nursery must be open and welcoming children by September 2026. That gives you approximately six months to design, fit out and equip your space.

Your capital grant can be spent directly on furniture, sensory play equipment, outdoor areas, storage and fittings - exactly what Cosy specialises in.

Our free space design service was built for exactly this moment. Tell us about your space and we'll handle the rest - layout drawings, furniture selections, outdoor planning and installation support. All at no charge.

Sept 2026
Nursery must be open - approximately 6 months away

£45m
Nursery must be open - approximately 6 months away

6,000+
New childcare places being created through Phase 2

Free
Cosy space design service - layout to installation, no charge

✓  New build or refurbishment of nursery spaces
✓  Furniture - tables, chairs, shelving, storage units (Cosy Range)
✓  Outdoor canopies, fencing, hard & soft landscaping (Cosy Range)
✓  Sensory play equipment (Cosy Range)
✓  Architect and project management fees
✓  Toilets and changing facilities for younger children
✓  Kitchen fittings - sinks, fridges, cupboards
✓  Safety fittings, door locks and intercom systems
✓  Mechanical and electrical works
✓  Building control and planning costs

The capital grant is for physical works and durable equipment. It cannot be used for consumables, staffing or running costs. Cosy's core range of nursery furniture, storage, sensory play and outdoor equipment sits firmly within the eligible category.

DfE will review your project on completion and may claw back unspent funds. Plan your purchases early. Don't leave it to the last minute.

Our full range of nursery furniture, storage solutions, sensory play equipment and outdoor learning environments falls directly within DfE's eligible cost categories. Use your Phase 2 grant to build a space that will inspire children for years to come - and claim the full value of every purchase.

Didn't get into Phase 2? Or want to expand further? Phase 3 is the biggest phase yet. Almost £325 million. Running from 2027 to 2030. No per-project cap - from light refurbishment to full new build.

The key difference in Phase 3 is that schools don't apply directly. Local authorities submit multi-year proposals to DfE on behalf of schools in their area.

Your most important step right now is getting in front of your local authority before 30 September 2026.

Who Is Eligible for Phase 3?

State-funded primary schools, maintained nursery schools and Best Start Family Hubs. Schools that received Phase 1 or Phase 2 funding can apply again, provided the new project delivers additional places.

How Does Phase 3 Work?

Your local authority submits a multi-year proposal to DfE. Schools don't apply directly. Engage your LA now, make the case for your school and have a clear space plan ready to strengthen your project.

Key Phase 3 Dates

30 SEP 2026
LA proposal deadline

SPRING 2027
DfE notifies outcomes

SEP 2027
First nurseries open

SEP 2030
All capital spend completed

DFf explicitly allows local authorities to combine the Phase 3 SBN capital grant with their High Needs Provision Capital Allocation (HNPCA) to create more inclusive nursery environments. If SEND inclusion is central to your nursery vision, raise this with your local authority early - it can open up additional capital resource and strengthen your proposal's ranking.

Our in-house team of early years experts provides a completely free space design service - whether you're spending Phase 2 funding now or planning for Phase 3. We'll create a nature-inspired, biophilic environment that's beautiful, purposeful and tailored to your children's needs. From first conversation to final installation.

✓  Layout drawings  |  ✓  Furniture selections  |  ✓  Biophilic design  |  ✓  Outdoor Planning  |  ✓  Resource curation  |  ✓  Installation support

For more information and to speak to one of our space design experts - Click here →

 Whether you're spending Phase 2 funding right now or planning your Phase 3 application, we're here to help you make every pound count - and build a space children and families will love.

Book a Free Space Design  |  Shop Outdoor Play  | Shop Nursery Furniture

£45 Million Capital Funding Now Available for Childcare in Wales. Great news for local authorities across Wales - the Welsh Government has launched a £45 million capital funding programme to help grow and improve early years childcare provision. The programme runs from April 2025 to March 2028, with grants of up to £2 million available

£45 Million Capital Funding Now Available for Childcare in Wales. Great news for local authorities across Wales - the Welsh Government has launched a £45 million capital funding programme to help grow and improve early years childcare provision. The programme runs from April 2025 to March 2028, with grants of up to £2 million available

This funding is designed to support the expansion of:

✓  Flying Start childcare

✓  The Childcare Offer

✓  Foundation Learning within childcare settings

There is a strong focus on increasing Welsh-medium provision, encouraging co-location of services, and creating more childcare places where they are needed most.

Funding is available to local authorities in Wales, who can apply for capital grants to improve existing childcare facilities or develop new ones. Settings must be registered with Care Inspectorate Wales.

Award amounts are based on local need, identified through the childcare sufficiency assessment. This highlights where gaps in provision exist and where investment will have the greatest impact.

Total funding: £45 Million

Grant amount: Up to £2 million (100% grant funded)

Programme runs: April 2025 – March 2028

Funded by: Welsh Government

For full details on eligibility, how to apply, and terms and conditions, visit the Welsh Government’s official guidance: 
Childcare and Early Years Capital Programme 2025–2028 – GOV.WALES

If you have any questions, the Welsh Government’s Subsidy Control Unit can be reached on 
+44 (0)3000 604 400 or by email at subsidycontrolunit@gov.wales

The Department for Education is giving a further £3 million to support outdoor learning. This money is part of the National Education Nature Park programme. It will be used during the 2025–2026 school year. Schools and nurseries can improve outdoor areas for learning and nature.

More than 1,000 places will get help. This includes nurseries, schools, and colleges. Each setting can receive up to £5,000. The money must be spent on outdoor learning or nature projects.

You can use the funding for a range of nature-based resources, such as:

Gardening & Biodiversity
Tools, planters, and seeds to transform concrete areas into thriving habitats.

Fieldwork & Equipment
Scientific kits and monitoring tools to help students track and record local wildlife.

Specialist Support
 Access professional consultation and installation services to ensure long-term project success.

We’re experts at turning concrete into classrooms. We’ll give you a free design and a quote that fits your budget perfectly. Our range is sustainable, natural, and ready for whatever the British weather (or a class of Year 1s) can throw at it. Our planning team can help you turn grey areas into green ones. Everything will be tailored to your setting and budget. Click here to explore our resources. 

Read our guide on National Education Nature Park Funding

£740 Million for SEND School Places. The Government is spending £740 million to create 10,000 new school places for children with SEND. The goal is to help more children learn at schools near home. Schools can now apply for funding to improve or build new spaces.

Right now, fewer than one in ten mainstream schools have SEND units. The new funding will help schools become more inclusive. That means creating spaces where every child feels safe and supported. It’s a big step toward better local support.

Schools can use the money to build or upgrade SEND areas. These might include calm rooms, sensory zones, or tech-friendly spaces.

These areas help pupils stay calm, focus, and feel safe. That means better learning for everyone.

Our team can help design spaces that meet SEND needs. We offer sensory resources, calm corners, and outdoor learning ideas. Whatever your budget or space, we’ll help you plan the right setup. For more information and to speak to one of our space design experts - Click here

The Cosy SEND Hub has ideas, bundles, and helpful guides. You’ll find tools that match the funding. From breakout areas to sensory zones, we’re here to support you. With the right space, every child can thrive.  

Click here to view our guide.

A separate announcement confirms £3 billion to create approximately 50,000 specialist places in mainstream schools over the next three years, so more children can get support close to home. 

The plan is designed to reduce long journeys and help children stay part of their local school community. The Government notes that at least 180,000 pupils with SEND currently receive home-to-school transport.

Funding can help schools create specialist, calm learning spaces – including breakout rooms and areas that support children who may feel overwhelmed in busy classrooms, such as pupils with autism or ADHD.

The funding will be distributed through local authorities, who will work with schools and academy trusts to understand what’s needed locally. The Government also says 2026–27 allocations will be issued in spring.

If you are looking at new SEND spaces, we can help you map out what will work in your setting – from sensory zoning and safe, calming areas to inclusive outdoor learning ideas that support regulation and wellbeing.

For more information and to speak to one of our space design experts - Click here

The Cosy SEND Hub is packed with ideas, bundles and practical guides to help you turn funding into a space that truly supports children – from breakout areas to sensory zones, indoors and out. 

Click here to visit the Cosy SEND Hub.

A separate announcement confirms £3 billion to create around 50,000 specialist places in mainstream schools over the next three years, so more children can get support close to home. 

A new expectation will be set out in the SEND Code of Practice, confirming that all staff in every nursery, school and college should receive training on SEND and inclusion.

Schools, colleges and early years settings will get support they can start using quickly, including:

✓  Ready-to-use training resources created with specialist input. These will be shared nationally so settings can run SEND and inclusion training in-house for all staff.

✓  New training for teaching assistants, shaped with the sector. The aim is to help support staff feel more confident and better prepared to meet a wider range of needs.

✓  A free Early Years CPD offer for practitioners, focused on inclusive practice, child development, and practical ways to support children with SEND day to day.

The Cosy SEND Hub is packed with ideas, bundles and practical guides to help you turn funding into a space that truly supports children – from breakout areas to sensory zones, indoors and out. Click here to visit the Cosy SEND Hub

Knowing what to buy is one thing. Knowing how it all fits together is another. Our space design experts have worked with nurseries and schools across the UK to create environments that truly work for children with SEND needs. From sensory zones to calm breakout areas, we'll work with your measurements, your budget and your vision. You'll get a free space design and quotation. No guesswork. No stress.

Talk to our space design experts and let's create the perfect space for your children.

The Department for Education wants all children to have a healthy, active start to life. With PE and Sports Premium funding, schools have a helping hand to get the right resources into their playgrounds and classrooms to facilitate this goal. From expanding on your physical development continuous provision to investing in larger scale outdoor apparatus, we can help you plan out the best way to maximise your spend to support all learners. Funding is based on the number of pupils in Years 1 to 6 (children aged 5–10).

The Government will provide £320 million funding for all eligible schools. In 2025 to 2026, schools will receive 50% of the funding on 31 October 2-25 – or 27 February if the school is new, or teaching eligible pupils for the first time, followed by a second 50% payment on 30 April 2026. Schools with fewer than 16 pupils receive £1,000 per pupil. Schools with 17 or more pupils receive £16,000 plus £10 per pupil.

The Government will provide £320 million funding for all eligible schools. In 2025 to 2026, schools will receive 50% of the funding on 31 October 2-25 – or 27 February if the school is new, or teaching eligible pupils for the first time, followed by a second 50% payment on 30 April 2026. Schools with fewer than 16 pupils receive £1,000 per pupil. Schools with 17 or more pupils receive £16,000 plus £10 per pupil.

To get the best impact, schools should aim to improve five key areas:

✓  Build staff confidence and skills to teach PE and sport
✓  Get more pupils active, more often
✓  Raise the profile of PE and sport across the whole school
✓  Offer a wider range of activities, with equal access for boys and girls
✓  Increase participation in competitive sport

Schools can use the funding in lots of everyday, workable ways, such as:

✓  Providing CPD for staff to strengthen PE teaching
✓  Building movement into the school day – for example active travel and active breaktimes
✓  Offering extra support to engage the least active children
✓  Making sure all pupils can access the full range of activities, with fair and equal opportunities
✓  Running after-school clubs or bringing in specialist coaching
✓  Providing extra help so children with additional needs can take part fully in PE lessons
✓  Entering local competitions and running inter-house events to boost confidence and involvement

Schools can also use funding to provide extra swimming and water safety lessons for pupils who have not yet met national curriculum expectations, after they have completed core lessons. This can include paying for: Transport and training for a teacher to deliver swimming and water safety lessons.

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Click here to explore resources suitable for Sports Premium funding.