Case Study

Childcare Business Grants Scheme (CBGS)

Client: Department of Education | Sectors: Economic Growth

Ecorys manages the Childcare Business Grant Scheme on behalf of the UK Department for Education. On this programme since January 2017, we have processed almost 4,000 small grant applications and paid out more than £1.5 million.

The scheme makes payments of between £300 and £1,000 to new OFSTED registered childcare businesses to support them to enter the childcare market, as part of the UK government's commitment to offering 30 hours per week of free childcare to all parents. As well as checking eligibility for the grant and approving applications, We are also responsible for light touch audits for a selection of grants. We conduct an annual survey, assessing the business impact of the grant. The grants application process is highly automated and supported by a helpline.

The October 2018 impact survey analysed responses from more than 300 childcare businesses that had received a grant.

Key findings included:

- that businesses used the grant chiefly to pay for training or equipment

- 66% reported they would have struggled to set up their business without the grant

- that more than 40% of recipient businesses could now offer places to children with Special Educational Needs or Disabilities as a result of the grant

- that grant recipients were spread across England

The Childcare Business Grants Scheme closed in 2019. There are no plans from the Department for Education to start a new Childcare Business Grants Scheme.