The rise in schools-based nurseries and the practicalities for growing trusts

The Department for Education (DfE) recently committed funding and approved 300 new school-based nurseries in a bid to boost early education.

In this article we explore what’s required and the key considerations for academy trusts considering taking on a nursery. 

Navigating the world of adding nurseries to academies can feel like solving a complex puzzle, especially with the ever-changing policies from the DfE. It's like trying to keep up with the latest fashion trends, just when you think you've got it, everything changes!

Breaking the process down into bite-sized pieces 

Initially, the simplest route is to include the nursery during the academy's conversion process. The DfE has recently softened its stance a bit here, allowing nurseries that are governor-led (affectionately known as section 27 nurseries) to join the academy without the hassle of a long consultation or the need to shuffle them into a subsidiary company. 

However, if you decide to add the nursery post-conversion, things get a little more intricate. 

A common scenario for a little context: an on-site charity-run nursery is losing steam and sees a bright future by partnering with the neighbouring academy. Keen to secure the continued progression for pre-school aged children into Reception the school are keen to press ahead. 

The trust then has to juggle a few balls - they need to vary the school’s Funding Agreement with the DfE to accommodate the nursery-aged children, sort out any property rights that the current providers may have, and smoothly transition the staff, assets, and contracts. The scenario quickly turns into a mini academy conversion.

Due diligence

And of course, there’s the due diligence. Trusts need to ensure that the educational, financial and legal risks associated with the nursery are explored and any major issues addressed – especially when transferring employees. 

If the nursery serves toddlers under two years old, then the Ofsted registration requirements will need to be checked to keep everything compliant.

Often, the nurseries are run by dedicated volunteers who might be a bit wary of this whole process. It's important to tread gently and ensure they don't feel overwhelmed, especially since their legal budget might be tight or non-existent.

Nurseries as a subsidiary

In another twist, some academies might opt to place the nursery into a subsidiary company. 

Broadly similar to the above (but without the Funding Agreement element) this option can be handy if the trust operates multiple nurseries, wants accommodate different employment practices or if the nurseries are not naturally co-located with any of the trust’s school.

Compartmentalising nurseries in this way can be neat and tidy, but managing subsidiaries can be time consuming and certainly requires serious planning before they are set up. 

Conclusion

So, there you have it, a peek into the labyrinth of adding nurseries to academies. Whether it's a straightforward addition at conversion or a more complex arrangement down the line, it's all about planning, understanding the nuances, and keeping everyone informed and comfortable throughout the process.