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£2m to continue Childcare Business Grants Scheme

The Childcare Business Grants scheme has been extended during 2015-16. 

The scheme aims to boost the provision of childcare in England and to incentivise entrepreneurship. It encourages and supports the starting up of new childcare businesses by providing a flat rate start-up grant.

The scheme offers grants of £250 to prospective child minders or £500 to those looking to start up nurseries in England. To date, it has supported around 4,500 new child minders, which between them could have offered up to 32,000 new childcare places.

There are three types of grant available, depending on the type of childcare business that is to be set up:

  • £250 for new childminding businesses (a childminder is someone who looks after children in their own home, either alone or with help from one or two other adults).
  • £500 for new childminding businesses (as above) that intend to provide care for disabled children.
  • £500 for larger childcare businesses, including nurseries and out-of-school clubs (which are usually run in a specialist building), and childcare businesses on domestic premises (in someone's home, but with four or more adults working there).

All costs incurred through the setting up of a childcare business will be considered as eligible. This includes: courses attended, health check, Disclosure and Barring Service (DBS) check, public liability insurance, house or commercial building insurance cover, additional car insurance to cover the transportation of the children in care, and any additional equipment that is purchased.

Those who are intending to set up a brand new childcare business in England may apply for support through this programme. Applicants are required to contact their local authority before applying for this grant. Local authorities have a statutory duty in regard to childcare, and can offer useful advice and information regarding the local situation.

Applications may be submitted at any time.