School-based Nursery Capital Grants

With permission, I will make a statement to update the House on the roll-out of nurseries in our primary schools.

This Labour Government are bringing the change that families deserve. We made promises to the parents and children of this country and, not nine months in, we are acting to deliver on them. Free breakfast clubs are already being rolled out, the curriculum and assessment review is in full swing, and children’s social care is seeing the biggest overhaul in a generation. We have funding for 10,000 new places for pupils with special educational needs and disabilities, backing for up to 10,000 more apprentices to qualify, new improvement teams for our schools and a new allowance for our kinship carers—promises made, promises kept. Here, today, we go further.

This £37 million in funding for 300 primary schools to open and expand nurseries is a big step towards delivering 3,000 nurseries for schools, a big step towards delivering childcare for parents and a big step towards delivering the best start in life for all our children. I want that best start in life for every child, because I want opportunity for every child. I want every child in every village, town and city across our country to grow up knowing that success belongs to them. That is the kind of country I want to live in—the country that this Labour Government want to build, with opportunity not just for some, but for all our children.

To achieve that, we need to start early, before university or college, and even before school—in the earliest years of our children’s lives. Those years are fundamental to opportunity. That is where gaps in learning and development first appear, and the longer we wait, the wider they grow and the harder they are to close. That is why, when I am in schools, colleges and universities—even in those places—they agree that the biggest chance to make an impact on our children’s lives sits in those crucial early years. That is why this is my No. 1 priority.

If we get this right, and we set all children on the track to success, that is where they will stay. That is why, despite the huge fiscal challenges that we inherited from the Conservatives, we chose to invest more than £8 billion in the early years at the last Budget. It is why the early years are a central part of the Prime Minister’s plan for change, setting the target of a record share of children starting school ready to learn. That is why I am today announcing the 300 schools that will be delivering our first wave of new and expanded school-based nurseries. Many of these school-based nurseries will serve communities facing big challenges, where there is strong evidence of need. Overall, it means up to 6,000 more nursery places for young children where they will have the biggest impact, with most of them starting in September this year. That is vital, because that is when the final stage of the 30 hours a week childcare entitlement will kick in. When that is joined up with the offer for three and four-year-olds, working parents of children from nine months right up to the beginning of school will get 30 Government-funded hours of childcare a week.

The 300 schools are just the start. It is 300 on the road to 3,000 school-based nurseries. We will work with schools, voluntary and private providers, teachers and local partners to find and spread what works. By the end, it will mean that tens of thousands more parents have the power to choose the hours they want to work.

What a contrast with the Conservatives, because what we inherited was not just an offer that they had not bothered to fund, but a pledge without a plan, with places, promises and provision missing. Parents made decisions on the back of those promises. Again and again, I hear from parents how much they have been relying on the promises that the previous Government scattered about like confetti. Across our country, this Government are delivering change in months, when the last Government waited 13 years before signing a post-dated cheque.

The changes that we are making will give parents more control over their lives, time to choose their working hours and money back in their pockets. The last Coram report showed that the effects are starting to flow through. Childcare costs for under-threes in England have halved since the expansion, but ultimately childcare and early years education is about children. It is about launching a lifetime of learning and starting as we mean to go on, so as we roll out these school-based nurseries, we are also adding the biggest ever uplift to the early years pupil premium, closing the attainment gap and giving every child the support that they need to learn and grow, and we are supporting early years educators to build their expertise.

It is not just what is taught in those nurseries that counts, but where they are located: they are in primary schools, which is no accident. We are centring schools in their communities, starting early, working with the voluntary sector and private providers too, so that the move from nursery to school is a natural step, from one room to another, sometimes even in the same building, as is the case at St Anne’s church academy in Weston-super-Mare. Having a nursery on site means that stronger, longer lasting relationships with families can be built. Parents feel that they are part of the community, so they engage more when their child starts nursery and then moves into school. When their child starts reception, there are no big, scary changes, building the sense that school is where they are meant to be.

I saw that powerfully this week when I went to Peterborough to visit Fulbridge academy. Little Oak nursery sits at the heart of the school. While I was there, I spoke to Hannah, a working mum whose little boy, Nile, goes to the nursery. She told me all about the difference that Little Oak was making to her family, and about how her son is making friends and taking big strides in his learning, ready to join his two older siblings at school in September. The nursery plays a big part in making Fulbridge academy the centre of that community.

It is the same for free breakfast clubs, which is why we announced the 750 early adopters this year. Schools are the beating hearts of their communities, where children come together to eat, learn and grow. It is good for attendance and achievement, for behaviour and belonging, and for children and their life chances. That is the point: this is action for them, to give them the start that they deserve, because that is my No. 1 priority, built on a deep and fierce commitment to the children of this country in the first years of their lives, taking their first steps into the world.

In our youngest children’s faces and in the faces of all who work with them, we see something that for so long has been missing from our country: hope. We see the hope of a brighter and better future, the hope of a secure and prosperous world, the hope that tomorrow can be better than today and the hope that this is a Government that are on their side. That is the future that we shape together, not face alone. That is the hope that so many people in our country have—that our best days lie ahead of us. That is what the people of this country chose in the general election last July, when they chose hope over fear, and chose a brighter tomorrow, not a bitter yesterday.

And that is why I am so focused on getting on and delivering change, because it matters so much for lives now, not in some distant future. Early years are where futures are made, where life chances are won and where healthier societies are built. That is the prize on offer. Our youngest generation is the first generation for whom opportunity is open to all, right from the start, and I know that Members from across the House will agree that that is a prize worth fighting for. I commend this statement to the House.

I call the shadow Secretary of State.

We welcome the Education Secretary’s announcement, but let us be absolutely clear: the policies that she is talking about represent investment of £37 million, but the Government are taking away half a billion pounds from nurseries by failing to compensate them for the national insurance increase. That will have a catastrophic effect on nurseries up and down the country, which will be forced either to close or to put their prices up. “Catastrophic” is not my word, but that of the Early Years Alliance, following Labour’s national insurance bombshell on the childcare sector.

In her statement, the Education Secretary said that she inherited a “pledge without a plan”—what a load of nonsense! It is our plan that is delivering the expansion of funded childcare this autumn, and our plan that she today confirmed has already halved costs for under-threes, according to independent research. That is our plan, Madam Deputy Speaker, but it is her plan that is shutting nurseries up and down the country, and that will put up costs for parents.

Just last week, I hosted a roundtable with some of the unsung heroes of the sector—nursery owners. Many were in tears, struggling with very real decisions about whether they can keep their doors open. One of the owners shared with me that she is stopping her own salary so that she can continue to pay her staff the amount they deserve. Another owner was having sleepless nights worrying about how she would provide proper care for the children now that she can no longer afford the staffing costs, thanks to this Government’s decisions.

It is clearly absurd for the Government to ask the sector to absorb the increases in national insurance while keeping fees the same. The consequences of that are entirely predictable: nurseries will have to either close or put up their prices. A recent survey by the Early Years Alliance said that, sadly, around 400 nurseries that it spoke to may have to close because of this Government’s jobs tax. That is what the Education Secretary’s No. 1 priority looks like. Parents will lose out too. According to the National Day Nurseries Association, increases to national insurance contributions will force nurseries to raise their fees by 10%. Those are the obvious consequences of this Government’s decisions.

It must be profoundly draining for the right hon. Lady to come to the Chamber when faced with such good news and to bring such studied, forced negativity every single time. Six weeks ago, I was in the House delivering the news that we are supporting hundreds of schools across our country to open free breakfast clubs, and we got much of the same studied, forced negativity then. Today, not nine months into this Government, we are beginning the roll-out of school-based nurseries, as we have promised to the people of this country—[Interruption.]

I spoke about visits, and the hon. Member for Harborough, Oadby and Wigston (Neil O’Brien) should go and visit the school-based nursery that will shortly be opening in his constituency. I never hear from Conservative Members that they will be visiting those nurseries or breakfast clubs, so maybe they could take time out of their busy schedules to go and do precisely that. The only priority that they have is to bring back tax breaks for private schools, taking away resources from our state schools. That is the one idea that they have. Their idea of fresh thinking is to spend money they did not raise on plans they did not make.

On the questions asked by the right hon. Member for Sevenoaks (Laura Trott), we are investing £8 billion in expanding early years entitlements, alongside doubling the early years pupil premium, a £75 million expansion grant and compensation for school-based nurseries. The contrast between this Government and the Conservatives is like night and day. I am proud that at the Department for Education, under a Labour Government, it is week in, week out the Department for hope—the hope of a brighter and better future for our children and our country.

We have free breakfast clubs, a cutting-edge curriculum for all our children, the biggest overhaul of children’s social care for a generation, funding for up to 10,000 new school places for children with special educational needs and disabilities, backing for up to 10,000 more apprentices to qualify, new improvement teams in our schools, a new allowance for kinship carers and new support for expanding foster care. That is the difference between this Labour Government and the Conservatives. We are the party of hope. If the Conservatives’ recent leadership contest was anything to go by, they cannot decide if they are the party of fear or the party of despair.

Early years is another strand of education that was decimated by the last Government. Although those on the Conservative Benches have not valued this sector, as a former teacher, a mum and now an MP, I know its value for children and families in our communities. Although in Portsmouth we do not have one of the 300 nurseries announced in today’s first wave, I commend the Government on this initiative. I take this opportunity to commend and praise all those who work in the sector, providing opportunities for the young people in my city. I thank them for their fantastic work. I also take this opportunity to ask the Secretary of State to update the House on delivery of the planned September 2025 childcare expansion, and to explain how she expects parents to benefit from the 30-hours roll-out across the fabulous nurseries in my city.

I am grateful to my hon. Friend, who brings real expertise to this place, through her background and wealth of experience in education. Through the expansion that we are rolling out this year, parents will see considerable savings, but crucially it will ensure that all our children get the best possible start in life. While I recognise her disappointment that her own constituency did not benefit this time around, I note that Portsmouth South secured a school-based nursery this time around. Of course, this is only phase 1 of what will be a wider roll-out as time progresses.

I call the Liberal Democrat spokesperson.

Access to flexible, high-quality early years provision gives children the start they deserve and parents the choice they need to live their lives, and it is one of the best possible investments we can make in the future of our country. For those families living in childcare deserts left by the previous Conservative Government, today’s announcement will be welcome news.

I welcome the sorely needed uplift in the early years pupil premium, but school-based nurseries can only ever be part of the puzzle. We will never fix the crisis in early years without fixing the deep problems facing private and charitable providers. They deliver the vast bulk of the Government’s free entitlement, yet they face some of the toughest challenges in making ends meet. The Government’s national insurance hike, the failure to ensure that rates actually cover delivery costs and damaging guidance to local authorities on funding agreements, which came into effect this week, mean that many are struggling to stay afloat. We have already heard that the Early Years Alliance survey found that four in 10 said they would reduce their number of funded places for three-year-olds and four-year-olds in the next year. Some 94% said they would be forced to raise their fees for parents for non-funded hours, and almost a third said they were likely to permanently close. Can the Secretary of State tell me how that is extending choice for parents? Building Blocks nursery in Teddington in my constituency is now operating at a loss and faces some incredibly painful decisions that will hurt parents, children and staff.

While I welcome today’s announcement, will the Secretary of State commit to an urgent review of the rates paid for free entitlements to ensure that they cover delivery costs? Will she finally take this opportunity to recognise the deep damage that the national insurance hike is doing and ensure that early years providers are exempted? Finally, will she look again at the damaging guidance issued by her Department on charging and funding agreements?

I am grateful to the hon. Lady. Like her, I pay tribute to the big range of providers that play a crucial role in supporting our children’s early education. That extends to private voluntary providers and childminders, who are a crucial part of the sector. The announcement we are making today on school-based nurseries is designed to deal with many of the challenges that she identifies arising from the childcare deserts left behind by the Conservatives. We also know that school-based providers have a greater share of the market in more deprived areas, and 34% of those announced today will serve disadvantaged communities.[Official Report, 23 April 2025; Vol. 765, c. 9WC.] (Correction) Alongside that, I note that the hon. Lady welcomes the biggest ever uplift that we have secured in the early years pupil premium, which will make a big difference to the life chances of children from more disadvantaged backgrounds. When it comes to the rates, we will always continue to keep those under review.

The hon. Lady asks about the charging guidance that has been issued. I believe it is important that parents have greater transparency when it comes to charging and fees, and where they are able to exercise greater choice in what is being offered to them. I believe that is the right approach, not least as we move towards a system in which the vast bulk of childcare is backed by Government.

I have seen more Tory MPs changing a lightbulb than there are in the Chamber today. I welcome the statement from the Secretary of State—as does Thomas Gray primary school, a very good school in my constituency; the parents and children do a fantastic job there—and I thank her for it. Does she agree that, quite simply, actions speak louder than the many words the Opposition say?

I agree with my hon. Friend. Like him, I pay tribute to the amazing staff working right across education in our schools and nurseries for the vital work they do.

I like the right hon. Lady, and I really enjoyed her sunlit-uplands speech—anyone would think there was a leadership contest on in the Labour party. I did not quite hear the answer to the question from my right hon. Friend the Member for Sevenoaks (Laura Trott) about the way in which the increase in national insurance contributions will hit all nurseries at once, whereas at the moment we are getting an initial tranche of 300 out of an intended 3,000 new arrangements for her announcement to be fulfilled. Over how long a period does she expect to get from 300 to 3,000?

I am glad that the right hon. Gentleman likes a bit of hope and optimism; I think we could all do with a bit of hope and optimism in the current world. The leadership contest I am really looking forward to is the one that we are going to see very soon in his own party. It will be a treat for all of us in this House, although I hope it does not happen, because I would much prefer for things to carry on just as they are.

I note the questions that the right hon. Gentleman asks. We have secured an extra £2 billion in the Budget, taking the total to £8 billion for early years entitlements. In addition, we have a £75 million expansion grant, compensation for public sector employers and, alongside that, the biggest ever uplift in the early years pupil premium. We are working very closely with the sector to deliver the places and the staff required, and we will continue to do so in the months ahead.

Answer the question!

In answer to the question, this is the first phase, and we will roll out the 3,000 over the course of this Parliament.

I warmly welcome the refocusing on early years by this Government, and I also welcome the school-based nursery announcements today; I am particularly excited about the one at Tranmere Park primary school in Guiseley in my constituency. How many children do we think will be affected by this announcement, and how many parents will benefit from it?