£500 grants for childcare start-ups


From April 2013, grants of up to £500 will be available for those setting up a nursery or childminding business, thanks to a £2m scheme to be announced by the Government.  The money is designed to help with legal and insurance costs, health and safety training and equipment. Advice and mentoring will also be offered as part of the scheme.

Maria Miller , Women and Equalities Minister, said childcare was an important part of getting women into work.

“There are more women in work than ever before and they are playing a vital role in our economic recovery but good quality, affordable and reliable childcare is the key to even more women being able to work,” she said.

“More childcare options mean more women can take up jobs, help support their families and realise their own career ambitions.

“The childcare industry is already a major employer of women and this scheme will provide huge opportunities for female entrepreneurs to start up and run their own businesses.

“This is an injection of cash designed to stimulate the sector in tough times. The new scheme will provide more childcare places but will also help get up to 6,000 new childcare businesses off the ground.”

Earlier this year, Downing Street launched a review of childcare provision in the UK as research suggested six out of 10 parents felt there was insufficient childcare in their area.

This review came after the Department for Education released a report showing almost a quarter of childcare providers in England were making a loss despite fees being among the highest in the world


5 thoughts on “£500 grants for childcare start-ups

  • November 26, 2012 at 4:38 pm

    Hi, I set up last year as a childminder and struggled financially. I had apparantly missed out on the original set up grant so had to start with no financial help. So now I have been running for a year, does that mean I miss out on the grant? Seems very unfair it is coming back in. Would have really helped and still would with future training!

  • November 14, 2012 at 12:21 pm

    I deem this as proof of just how out of tuuch this government is. I have been running my own nursery for eleven years, we have always provided good quality care as endorsed by our Ofsted reports. During this current recession we have seen a fall in members of which we have never experienced, this is due to an unpresidented number of mothers being made redundant along with raising the qualifying band for tax credits associated to child care costs.

    £500 pounds would not cover half of our insurance cost let alone any other nessasary cost required to set up a child care business.

    The government should take time to talk to providers on the front line and offer support to those who have years of experience in providing quality care and are committed to providing a Prfofessional service where staff are continually evolving as reflective practitioners through being committed to drgree level qualifications and professional training. They shoulde also deliver sufficient funding to be able to pay these professionals accordingly – £500 is just another example of early years being held with a deficit view!!

    Yours a flabbergasted provider!

  • November 14, 2012 at 12:15 pm

    If government research showed that existing childcare provision operating at a loss, why on earth do they think that pumping start up money into new provision is going to solve this problem? Many childcare providers are already struggling and setting up new provision in already saturated areas is going to be of no use whatsoever. If research is suggesting that 6/10 parents feel there is insufficient childcare in their area, then what is the point of the sufficiency duty placed upon local authorities and why is the government proposing deregulation of some of the key childcare services if not simply to cut costs without a thought for safeguarding the children and the workers caring for them?

  • November 14, 2012 at 11:52 am

    Anne Abraham says:
    Your comment is awaiting moderation.
    November 14, 2012 at 11:50 am
    Hi there,

    I am in the process of starting up a Children’s care home in Croydon, Surrey, for 3 children with learning difficulties aged 7 to 17 years.
    I have just received my ofsted registration certificate and would like to know if I would qualify for this grant.
    I look forward to your reply.

    Thank you.
    Anne Abraham

  • November 14, 2012 at 11:45 am

    Unfortunately this just shows how ‘under the duvet’ the Government is, if they think that £500 will help with setting up a new business. For a private 50 place nursery that will just about pay the OFSTED fee for a new registration, it won’t come anywhere near paying for the insurance of a building required for that many children.

    Why oh why does the Government not listen to PVI settings and take away the 20% VAT charged on all our costs (which comes straight off the bottom line – profit) and reduce our business rates to a reasonable cost for the services offered. That would put an immediate profit and cash injection into most businesses thereby going some way to reducing the loss made on all the three and four years olds we have in our settings who are not funded enough to cover costs.


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