Early Years Alliance calls for schools evicting PVI settings to be banned from school-based nursery scheme, as government confirms £370m funding allocation in Spending Review

Primary schools who have forced private, voluntary or independent (PVI) early years providers to leave their premises in order to apply for school-based nursery funding should not be allowed to participate in the government scheme, leading early years membership organisation the Early Years Alliance has said.

During the recent Spending Review, Chancellor Rachel Reeves confirmed that the government is pushing ahead with its plans to deliver 3,000 new or expanded school-based nurseries, which it says are at the “heart” of its Plan for Change, confirming £370m in funding for the scheme over the next four years.

This follows an initial phase in which 300 school-based nurseries received £37m in government funding to repurpose spare space for new or expanded nursery provision.

While the government has said that school-based nurseries are intended to supplement, rather than replace, PVI provision, the Alliance has received reports of number of instances of primary schools terminating leases with PVI providers previously operating on their premises in order to open their own provision and apply for funding under the government scheme.

Earlier this year, the Alliance filed a Freedom of Information request to the Department for Education (DfE), asking how many of the primary schools awarded school-based nursery funding have had PVI providers operating on their premises over the past two years, and how many had served notice on PVI providers operating on their premises over the same period. However, the DfE has since confirmed that it does not hold that information.

Commenting, Alliance CEO Neil Leitch said:

“The government has said time and time again that school-based nurseries are intended to work alongside, and not replace or displace, private and voluntary settings – and yet, as the response to our Freedom of Information request shows, this simply isn't being monitored.

“We have heard far too many reports of high-quality PVI providers, many of whom have previously enjoyed positive relationships with their local school – being told at very little notice that they must find new premises because the school in question now wants to apply for government funding to open their own provision.

“With the full rollout of the school-based nursery scheme now confirmed by government, it is absolutely critical that safeguards are put in place to ensure that any new school-based provision is not at the expense of existing PVI provision. This means ensuring primary schools who have served or intend to serve notice on PVI providers in order to apply for school-based nursery funding are not eligible to do so.

“We're clear that PVI settings are an absolutely critical part of the early years sector, especially at a time when the government is looking to significantly expand provision for younger children.

“We therefore urge policymakers to work with us to review and improve the school-based nursery application process to ensure that the ongoing rollout of this policy does not put a single PVI setting at risk.”

Case studies

“We've been operating in Doncaster for the last 32 years, but as soon as the new government legislation to create new school-based nurseries was announced, we were asked to leave our premises so that the school might build their own nursery. We were initially asked to help run their facility until September 2026. This changed to 2024 and then to 2025 as the school ran behind schedule. 

“The whole ordeal has been a devastating blow to us. Over the last 32 years we have become embedded in the community and our experienced staff often goes above and beyond to support families however they might need – ranging from helping families to access free school meals through our own resources to providing additional resources to ensure we are inclusive and all children feel welcome. 

“After spending a lot of time and money – bearing in mind we are a charity – we have finally found an alternative location in an area with great childcare need, but the building is in disrepair and requires a considerable amount of funding and skilled work before it is fit to be open.” – Alison Wilkinson,Hatchell Wood Pre-School, Doncaster.

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“At the beginning of the school year, in September 2024, we had nine two-year-olds accessing the entitlement funding – so you can imagine our surprise when the infant school served us notice to terminate our rental agreement and asked that we vacate the premises by 18 July 2025 – the end of the school year – in order for them to create their own school nursery for children from the age of three.

“We support the most vulnerable children: since 2018, we have had 11 children with identified SEN and our playgroup has been recommended to parents of children with SEN by the Specialist Support Services team due to our provision. We even have a dedicated area as a sensory room to support children with SEN. Although we have found new premises – subject to Ofsted re-registration – this entire process has caused huge distress to myself, the staff members and the families and children that we currently care for.” – Rebecca Stanford-Durdan, St Michael's Playgroup, Finedon, Northamptonshire

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“I have been running the nursery at Blossom Montessori School for over 15 years and created strong relationships with local families. Due to the fact the school is wanting to open their own nursery via the school-based nursery grant, I am having to put a considerable amount of money towards a new location to ensure it fulfils Ofsted criteria – and I consider myself one of the lucky ones! The whole situation has been incredibly disappointing.” – Sian Rumble, Blossom Montessori School, Surrey

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“I have operated a small nursery setting – graded Outstanding last year – for over five years on an academy school's premises. Just this February, we were told our lease was not being renewed due to the school wanting to open their own nursery. 

“On the whole, the academy trust has not been forthcoming with communications, denying their intentions when I inquired months prior to their formal announcement.  They will also be implementing improvements I have previously requested and been denied. The justification I was provided was that the school needed the money. I am disappointed with how this was handled and that the government left gaps in their policy allowing this to happen.” – Anonymous

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“After a period of uncertainty about the nursery's future at the end of 2024, we received a formal notice to quit from the school in December 2024. When we initially took over the premises, the school encouraged us to continue working with them and even towards joining them. To say we were devastated when we found out we had been given notice to quit to enable them to apply for the schools-based nursery grant would be an understatement.

“They framed their application as a way to offer more to parents, such as longer hours or staying open during school holidays. They never even had the courtesy to have a discussion with us to see whether we could work together. The poor communication and handling of the whole issue has not only negatively impacted us but the many parents who love our setting and ethos.” – Anonymous