{"id":1818724,"date":"2026-09-15T15:29:19","date_gmt":"2026-09-15T13:29:19","guid":{"rendered":"https:\/\/lexpress-franchise.com\/en\/articles\/how-to-open-a-nursery-in-the-uk\/"},"modified":"2026-09-15T15:08:02","modified_gmt":"2026-09-15T14:08:02","slug":"how-to-open-a-nursery-in-the-uk","status":"publish","type":"post","link":"https:\/\/lexpress-franchise.com\/en\/articles\/how-to-open-a-nursery-in-the-uk\/","title":{"rendered":"How to open a nursery in the UK in 2026"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><strong>Providing childcare without Ofsted registration is a criminal offence, and registration costs \u00a3220 and takes around 12 weeks. What decides whether a nursery pays is set elsewhere: the ratios fix the staff cost of every child-hour, and councils set the hourly rate for funded places, which since September 2025 cover children from nine months for eligible working families.<\/strong><\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\"\/>\n\n\n\n<p class=\"wp-block-paragraph\">A nursery is regulated twice over. Ofsted registers the provider and approves each set of premises, and the Early Years Foundation Stage framework then governs how the setting runs, down to how many adults must be present for each age group. The rules below are those of England; Scotland, Wales and Northern Ireland register and fund childcare under their own systems.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-primary-color has-text-color has-link-color wp-elements-1\">What is a nursery business?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">A day nursery provides care and early education for children from birth to school age, on premises that are not someone&#8217;s home. Ofsted calls this <strong>childcare on non-domestic premises<\/strong>, the category covering nurseries, pre-schools, playgroups and holiday clubs. A full-day nursery joins the <strong>Early Years Register<\/strong>, which covers children up to 31 August after their fifth birthday and requires the EYFS framework to be met; the Childcare Register, for older children, can be joined free at the same time. Its income comes from two sources: council funding for entitled hours, and fees parents pay for everything else.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-primary-color has-text-color has-link-color wp-elements-2\">How to open a nursery in the UK, step by step<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The checklist, in the order openings usually run:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Capacity and staffing worked out from the ratios, age group by age group<\/li>\n\n\n\n<li>Funding and fees modelled: council rates for funded hours, parent prices for the rest<\/li>\n\n\n\n<li>Premises found and the planning position confirmed<\/li>\n\n\n\n<li>Manager and nominated individual appointed<\/li>\n\n\n\n<li>Company formed, with VAT treated as a cost<\/li>\n\n\n\n<li>Suitability checks completed under the September 2026 rules<\/li>\n\n\n\n<li>Ofsted application made, allowing at least four months for a September start<\/li>\n\n\n\n<li>Rooms fitted out to the safer sleep and space requirements<\/li>\n\n\n\n<li>Staff recruited to ratio, with every DBS check back before day one<\/li>\n\n\n\n<li>Places filled room by room, with occupancy tracked weekly<\/li>\n<\/ul>\n\n\n\n<table id=\"tablepress-945\" class=\"tablepress tablepress-id-945\">\n<thead>\n<tr class=\"row-1\">\n\t<th class=\"column-1\">Stage<\/th><th class=\"column-2\">What typically happens<\/th>\n<\/tr>\n<\/thead>\n<tbody class=\"row-striping\">\n<tr class=\"row-2\">\n\t<td class=\"column-1\">Months 1 to 3<\/td><td class=\"column-2\">Local demand and council funding rates checked, premises found, planning confirmed, company formed<\/td>\n<\/tr>\n<tr class=\"row-3\">\n\t<td class=\"column-1\">Months 3 to 6<\/td><td class=\"column-2\">Conversion works, manager and nominated individual appointed, Ofsted application submitted<\/td>\n<\/tr>\n<tr class=\"row-4\">\n\t<td class=\"column-1\">Months 6 to 8<\/td><td class=\"column-2\">Ofsted decision within around 12 weeks, registration visit, staff recruited and checked<\/td>\n<\/tr>\n<tr class=\"row-5\">\n\t<td class=\"column-1\">Months 9 to 24<\/td><td class=\"column-2\">Rooms filled one age group at a time until occupancy covers the staffing<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n<h3 class=\"wp-block-heading\">1. Work out the capacity and the staff cost per child-hour<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The EYFS sets minimum ratios: <strong>one adult to three children under two<\/strong>, <strong>one to five for two-year-olds<\/strong>, and <strong>one to eight for three- and four-year-olds<\/strong>, or one to thirteen where a Level 6 qualified practitioner works directly with the children. Under the framework in force from 1 September 2026, ratios apply across the whole provision rather than room by room. Dividing an hour of a practitioner&#8217;s cost by the ratio gives the staff cost of every child-hour, before any other expense:<\/p>\n\n\n\n<table id=\"tablepress-946\" class=\"tablepress tablepress-id-946\">\n<thead>\n<tr class=\"row-1\">\n\t<th class=\"column-1\">Age group<\/th><th class=\"column-2\">Ratio<\/th><th class=\"column-3\">Staff cost per child-hour<\/th><th class=\"column-4\">Council funded rate, 2026\/27<\/th><th class=\"column-5\">Left after ratio staff<\/th>\n<\/tr>\n<\/thead>\n<tbody class=\"row-striping\">\n<tr class=\"row-2\">\n\t<td class=\"column-1\">Under two<\/td><td class=\"column-2\">1:3<\/td><td class=\"column-3\">\u00a34.79<\/td><td class=\"column-4\">\u00a311.34 to \u00a312.42<\/td><td class=\"column-5\">\u00a36.55 to \u00a37.63<\/td>\n<\/tr>\n<tr class=\"row-3\">\n\t<td class=\"column-1\">Two-year-olds<\/td><td class=\"column-2\">1:5<\/td><td class=\"column-3\">\u00a32.87<\/td><td class=\"column-4\">\u00a38.32 to \u00a39.03<\/td><td class=\"column-5\">\u00a35.45 to \u00a36.16<\/td>\n<\/tr>\n<tr class=\"row-4\">\n\t<td class=\"column-1\">Three and four<\/td><td class=\"column-2\">1:8<\/td><td class=\"column-3\">\u00a31.79<\/td><td class=\"column-4\">\u00a35.98 to \u00a36.49<\/td><td class=\"column-5\">\u00a34.19 to \u00a34.70<\/td>\n<\/tr>\n<tr class=\"row-5\">\n\t<td class=\"column-1\">Three and four, Level 6 practitioner<\/td><td class=\"column-2\">01:13<\/td><td class=\"column-3\">\u00a31.10<\/td><td class=\"column-4\">\u00a35.98 to \u00a36.49<\/td><td class=\"column-5\">\u00a34.88 to \u00a35.39<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n<p class=\"wp-block-paragraph\">The ratio is the reason funded rates for babies are almost twice those for three-year-olds, and the table shows the consequence: after the ratio staff, an under-two funded hour leaves more than a three- or four-year-old hour does. What is left still has to pay the manager, the cook, cover for breaks and holidays, rent and everything else, which is why the age mix a nursery takes shapes its margin as much as its prices do.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">2. Model funded hours against fees<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Since September 2025, eligible working parents in England receive 30 funded hours a week, over 38 weeks, from the term after their child turns nine months until school; all three- and four-year-olds receive 15 universal hours. Councils pay providers an hourly rate they set each year within the government&#8217;s formula, and must pass at least 97% of the funding for the entitlements to providers. Rates differ by council: for 2026\/27, North East Lincolnshire pays \u00a35.98 for three- and four-year-olds and \u00a311.34 for under-twos, Buckinghamshire \u00a36.49 and \u00a312.42. Everything outside the entitlement is paid by parents. The Coram Childcare Survey 2026 puts the average price of 25 hours a week at a nursery in England at <strong>\u00a3188.75<\/strong> for a child under two before any funding, about \u00a37.55 an hour, and \u00a3174.85 for a two-year-old.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The split matters for cash flow and for value. One 86-place nursery advertised for sale took about 59% of its income from council funding and 41% from private fees. Funding arrives on the council&#8217;s schedule, and from April 2026 councils fund all the entitlements on termly headcounts. Many providers also offer the entitlement stretched across the year, fewer hours over more weeks, which evens out income for both sides.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">3. Find premises and confirm the planning position<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">In England a day nursery falls within <strong>Use Class E(f)<\/strong>, so a move from another Class E use is not a material change of use. A conversion from anything else needs planning permission, and recent conversions show what is involved: a former police station bought for \u00a3915,000 in 2026, a former social club approved for up to 80 children and 20 staff with part of its car park turned into a garden, and a disused church given a \u00a3250,000 redesign for 70 places. Ofsted approves the premises themselves, and operating from premises it has not approved is an offence in its own right.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Rents are substantial. A semi-fitted former nursery building of 7,216 square feet was advertised at <strong>\u00a387,500<\/strong> a year, about \u00a312 a square foot, and a 2,830 square foot London nursery was let at <strong>\u00a384,498<\/strong>, about \u00a329.86 a square foot, on full repairing and insuring terms with uncapped RPI reviews every five years and a rent deposit of about \u00a339,400. Nurseries are not retail, hospitality or leisure properties, so the standard business rates multipliers apply: 43.2p below \u00a351,000 rateable value and 48.0p above it.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">4. Appoint the manager and the nominated individual<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Two roles are filled before applying. The manager holds at least a Level 3 childcare qualification, and an organisation appoints a nominated individual, accountable for the registration, who cannot be the appointed manager unless they also sit on the governing body. Both are paid before a nursery has any income, which is why pre-opening payroll is the largest pre-opening cost after the premises. The qualifications staff hold also decide who counts in the ratios, under updated qualification standards that apply from 1 September 2026.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">5. Choose the structure and treat VAT as a cost<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">A private company limited by shares is the usual structure, with every director and governing body member counted as part of the registered person. Childcare supplied by a registered provider is exempt from VAT rather than zero-rated, so a nursery cannot recover the VAT it pays on furniture, equipment, fit-out and services. Every supplier price below therefore costs the nursery its VAT-inclusive figure: a cot listed at \u00a3374.99 excluding VAT costs \u00a3449.99.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">6. Complete the suitability checks under the 2026 rules<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Everyone connected with the registration needs an <strong>enhanced DBS check with barred lists<\/strong> and must complete an EY2 form, and at least one person caring for children must hold a paediatric first aid qualification. The framework in force from 1 September 2026 tightened three points that affect an opening timetable:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>No start before the check<\/strong>: new employees may not begin work until their enhanced criminal record check has been received, so the DBS turnaround sits inside the recruitment timeline<\/li>\n\n\n\n<li><strong>Volunteers<\/strong>: enhanced checks now extend to volunteers, including supervised ones<\/li>\n\n\n\n<li><strong>Reporting<\/strong>: the threshold for notifying Ofsted of allegations has been lowered, and changes to the manager, nominated individual, premises or structure must still be reported within 14 days<\/li>\n<\/ul>\n\n\n<div class=\"lf-gut-blog-post-cta-efference\" style=\"border-color: #fcb900;\"><div class=\"lf-gut-blog-post-cta-efference__icon\" style=\"color: #fcb900;\"><svg class=\"icon-thumb-up\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"35\" height=\"35\" viewBox=\"0 0 48 48\" fill=\"none\" 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17.2897ZM25.9937 14.0848C25.3555 13.8433 24.6881 13.9027 24.1473 14.0902C23.612 14.2757 23.0868 14.6256 22.7523 15.1185L24.4072 16.2415C24.4528 16.1744 24.5875 16.0543 24.8023 15.9799C25.0114 15.9074 25.1841 15.9169 25.2859 15.9554L25.9937 14.0848ZM22.7504 15.1213L18.9104 20.8212L20.5691 21.9387L24.4091 16.2387L22.7504 15.1213ZM15.9998 29.6399V20.48H13.9998V29.6399H15.9998ZM15.9998 20.48C15.9998 20.2144 16.0287 20.0485 16.0604 19.9495C16.0888 19.8605 16.1152 19.837 16.121 19.8316C16.1424 19.812 16.2914 19.7 16.8798 19.7V17.7C16.1482 17.7 15.3571 17.8179 14.7685 18.3583C14.1585 18.9183 13.9998 19.7102 13.9998 20.48H15.9998ZM16.8798 19.7H17.8198V17.7H16.8798V19.7ZM17.8198 19.7C18.3941 19.7 18.5477 19.8104 18.574 19.8344C18.5776 19.8376 18.6998 19.9386 18.6998 20.48H20.6998C20.6998 19.7014 20.532 18.9123 19.9205 18.3556C19.3318 17.8195 18.5455 17.7 17.8198 17.7V19.7ZM18.6998 20.48V29.6399H20.6998V20.48H18.6998ZM18.6998 29.6399C18.6998 30.1755 18.5805 30.2788 18.5752 30.2838C18.5511 30.3061 18.3996 30.4199 17.8198 30.4199V32.4199C18.56 32.4199 19.3484 32.2937 19.9343 31.751C20.539 31.191 20.6998 30.4043 20.6998 29.6399H18.6998ZM17.8198 30.4199H16.8798V32.4199H17.8198V30.4199ZM16.8798 30.4199C16.2914 30.4199 16.1424 30.3079 16.121 30.2883C16.1152 30.2829 16.0888 30.2593 16.0604 30.1704C16.0287 30.0714 15.9998 29.9055 15.9998 29.6399H13.9998C13.9998 30.4097 14.1585 31.2015 14.7685 31.7616C15.3571 32.302 16.1482 32.4199 16.8798 32.4199V30.4199Z\"\/><\/svg><\/div><h3 class=\"lf-gut-blog-post-cta-efference__title lf-transform-none\">Good to know<\/h3><div class=\"lf-gut-blog-post-cta-efference__lede\">\n<div class=\"wp-block-lexpress-highlighted-text-v2 lf-gut-blog-post-cta-efference__lede\">\n<p class=\"wp-block-paragraph\">Buying an existing nursery does not transfer its registration. Ofsted registration attaches to a legal entity and to approved premises, so the buyer cannot provide childcare there until the new entity is registered or the premises are approved under an existing registration. If the seller resigns before the buyer is registered, <strong>the setting must stop operating<\/strong>. A share sale, where the buyer acquires the company that already holds the registration, avoids that gap, which is why some nurseries advertised for sale are offered as share sales.<\/p>\n<\/div>\n<\/div><\/div>\n\n\n<h3 class=\"wp-block-heading\">7. Apply to Ofsted and allow for the timescale<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Applications for the Early Years Register go through Ofsted&#8217;s online form, the fee is <strong>\u00a3220<\/strong>, and Ofsted aims to decide within <strong>12 weeks<\/strong>, longer in some cases. A registration visit follows. Ofsted&#8217;s own guidance suggests allowing at least four months for a September opening, and no childcare may be provided until the certificate is issued. The fee is then payable every year on the anniversary of registration, and each additional setting carries its own approval and fee.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">8. Fit out to the space and safer sleep requirements<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The EYFS sets minimum indoor space per child by age, and from September 2026 the safer sleep requirements sit in the body of the framework rather than in separate guidance. Real prices from UK early years suppliers, VAT included because a nursery cannot recover it:<\/p>\n\n\n\n<table id=\"tablepress-947\" class=\"tablepress tablepress-id-947\">\n<thead>\n<tr class=\"row-1\">\n\t<th class=\"column-1\">Item<\/th><th class=\"column-2\">Price including VAT<\/th>\n<\/tr>\n<\/thead>\n<tbody class=\"row-striping\">\n<tr class=\"row-2\">\n\t<td class=\"column-1\">Basic wooden nursery cot with mattress<\/td><td class=\"column-2\">\u00a3449.99 at TTS<\/td>\n<\/tr>\n<tr class=\"row-3\">\n\t<td class=\"column-1\">Folding rest mat<\/td><td class=\"column-2\">From \u00a319.79 at Hope Education<\/td>\n<\/tr>\n<tr class=\"row-4\">\n\t<td class=\"column-1\">Sleep pod with accessories<\/td><td class=\"column-2\">\u00a3387.59 at Hope Education<\/td>\n<\/tr>\n<tr class=\"row-5\">\n\t<td class=\"column-1\">Mobile sleep mat store with ten mats<\/td><td class=\"column-2\">\u00a31,020 at Pentagon Play<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n<p class=\"wp-block-paragraph\">A baby room of nine under-twos needs a cot or safe sleep space for each child who naps there, alongside changing units, highchairs and the outdoor area the EYFS requires access to every day.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">9. Recruit to ratio<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Recruitment is the operational constraint: a nursery that cannot staff to ratio cannot take the child, however long its waiting list. Real openings show the scale. A conversion for 80 children planned for up to 20 staff, and a purpose-built 110-place setting opened with a team of 20 moving in and seven new jobs, roughly one member of staff for every four places once managers, cooks and cover are counted.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Pay<\/strong>: the National Living Wage is <strong>\u00a312.71<\/strong> an hour at 21 and over from 1 April 2026, <strong>\u00a310.85<\/strong> at 18 to 20 and <strong>\u00a38.00<\/strong> for apprentices under 19 or in their first year<\/li>\n\n\n\n<li><strong>Employer costs<\/strong>: employer National Insurance at 15% above \u00a35,000 a year, offset by the \u00a310,500 Employment Allowance, and none on apprentices under 25 up to \u00a350,270<\/li>\n\n\n\n<li><strong>Apprentices<\/strong>: for employers that do not pay the apprenticeship levy, a \u00a32,000 hiring payment applies to apprentices aged 16 to 24 starting from 1 October 2026, on top of \u00a31,000 for those aged 16 to 18<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">10. Fill the rooms and track occupancy<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">A nursery does not open full. Rooms fill one age group at a time, settling-in sessions come before regular hours, and each room only pays once it reaches enough children to cover its ratio staff. Nurseries offered for sale show what a filled setting looks like: one rated Good advertises 100% occupancy for up to 26 children, and others report relying on word-of-mouth referrals with no marketing at all. Occupancy by room, tracked weekly, is the figure that shows when the next member of staff can be hired.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-primary-color has-text-color has-link-color wp-elements-3\">Types of nursery business<\/h2>\n\n\n\n<table id=\"tablepress-948\" class=\"tablepress tablepress-id-948\">\n<thead>\n<tr class=\"row-1\">\n\t<th class=\"column-1\">Type<\/th><th class=\"column-2\">How it works<\/th>\n<\/tr>\n<\/thead>\n<tbody class=\"row-striping\">\n<tr class=\"row-2\">\n\t<td class=\"column-1\">Full day care nursery<\/td><td class=\"column-2\">Open roughly 7.30am to 6.30pm, from a few months old, the most capital-intensive format<\/td>\n<\/tr>\n<tr class=\"row-3\">\n\t<td class=\"column-1\">Pre-school or playgroup<\/td><td class=\"column-2\">Sessional provision for older children, lower staff cost because the ratios are looser above age three<\/td>\n<\/tr>\n<tr class=\"row-4\">\n\t<td class=\"column-1\">Workplace or campus nursery<\/td><td class=\"column-2\">On an employer&#8217;s or institution&#8217;s site, often won by tender<\/td>\n<\/tr>\n<tr class=\"row-5\">\n\t<td class=\"column-1\">School-based nursery<\/td><td class=\"column-2\">Run by or with a school; the government funded new nurseries in 300 schools from a \u00a337 million capital pot, which adds local competition<\/td>\n<\/tr>\n<tr class=\"row-6\">\n\t<td class=\"column-1\">Out-of-school and holiday club<\/td><td class=\"column-2\">On the Childcare Register where all children are over five<\/td>\n<\/tr>\n<tr class=\"row-7\">\n\t<td class=\"column-1\">Childminding<\/td><td class=\"column-2\">A separate registration on domestic premises, the lowest-capital route into the sector<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n<h2 class=\"wp-block-heading has-primary-color has-text-color has-link-color wp-elements-4\">How much does it cost to open a nursery in the UK?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">No official UK average start-up cost exists for a nursery. What can be stated is what the regulator charges, what the statutory cost base is, and what real openings and sales show:<\/p>\n\n\n\n<table id=\"tablepress-949\" class=\"tablepress tablepress-id-949\">\n<thead>\n<tr class=\"row-1\">\n\t<th class=\"column-1\">Item<\/th><th class=\"column-2\">Published figure, England<\/th>\n<\/tr>\n<\/thead>\n<tbody class=\"row-striping\">\n<tr class=\"row-2\">\n\t<td class=\"column-1\">Ofsted Early Years Register<\/td><td class=\"column-2\">\u00a3220 to join and \u00a3220 a year after, with the Childcare Register free at the same time<\/td>\n<\/tr>\n<tr class=\"row-3\">\n\t<td class=\"column-1\">Childcare Register only<\/td><td class=\"column-2\">\u00a3114; a reduced Early Years Register fee of \u00a335 applies to small-scale provision<\/td>\n<\/tr>\n<tr class=\"row-4\">\n\t<td class=\"column-1\">Business rates<\/td><td class=\"column-2\">Rateable value \u00d7 43.2p below \u00a351,000, 48.0p from \u00a351,000 to \u00a3499,999<\/td>\n<\/tr>\n<tr class=\"row-5\">\n\t<td class=\"column-1\">Premises, examples<\/td><td class=\"column-2\">\u00a387,500 a year for 7,216 sq ft; \u00a384,498 a year for 2,830 sq ft in London<\/td>\n<\/tr>\n<tr class=\"row-6\">\n\t<td class=\"column-1\">Equipment, example<\/td><td class=\"column-2\">\u00a3449.99 a cot, VAT included and not recoverable<\/td>\n<\/tr>\n<tr class=\"row-7\">\n\t<td class=\"column-1\">Staff<\/td><td class=\"column-2\">\u00a312.71 an hour at 21 and over; employer NI 15% above \u00a35,000, less the \u00a310,500 Employment Allowance<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n<p class=\"wp-block-paragraph\">Reported openings show the range: a purpose-built 110-place nursery cost \u00a3980,000, of which \u00a3680,000 was a bank loan, while conversions of existing buildings start from the purchase or lease of the building plus works, such as the \u00a3250,000 redesign of a former church for 70 places.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">What nurseries sell for<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Buying a nursery that already trades skips the registration wait for the setting, but the price reflects its earnings. Nurseries advertised through business brokers, in the figures their agents published:<\/p>\n\n\n\n<table id=\"tablepress-950\" class=\"tablepress tablepress-id-950\">\n<thead>\n<tr class=\"row-1\">\n\t<th class=\"column-1\">Places<\/th><th class=\"column-2\">Reported turnover<\/th><th class=\"column-3\">Reported earnings<\/th><th class=\"column-4\">Guide price<\/th>\n<\/tr>\n<\/thead>\n<tbody class=\"row-striping\">\n<tr class=\"row-2\">\n\t<td class=\"column-1\">Up to 26<\/td><td class=\"column-2\">\u00a3266,233<\/td><td class=\"column-3\">EBITDA \u00a365,617<\/td><td class=\"column-4\">\u00a3100,000, leasehold<\/td>\n<\/tr>\n<tr class=\"row-3\">\n\t<td class=\"column-1\">32<\/td><td class=\"column-2\">\u00a3240,000<\/td><td class=\"column-3\">Adjusted net profit \u00a362,000<\/td><td class=\"column-4\">\u00a3100,000, leasehold<\/td>\n<\/tr>\n<tr class=\"row-4\">\n\t<td class=\"column-1\">46<\/td><td class=\"column-2\">Not stated<\/td><td class=\"column-3\">EBITDA \u00a377,000<\/td><td class=\"column-4\">\u00a3300,000, leasehold<\/td>\n<\/tr>\n<tr class=\"row-5\">\n\t<td class=\"column-1\">86<\/td><td class=\"column-2\">\u00a3680,000<\/td><td class=\"column-3\">Adjusted net profit \u00a3135,000<\/td><td class=\"column-4\">Offers invited<\/td>\n<\/tr>\n<tr class=\"row-6\">\n\t<td class=\"column-1\">67, London<\/td><td class=\"column-2\">\u00a31.38 million projected<\/td><td class=\"column-3\">EBITDA \u00a3450,000 projected<\/td><td class=\"column-4\">\u00a32.475 million, leasehold<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n<p class=\"wp-block-paragraph\">Turnover runs at about \u00a37,500 to \u00a310,200 a place outside London on these listings and about \u00a320,600 a place in the London example, and guide prices range from about 1.5 to 5.5 times reported earnings. The gap is the area, the Ofsted grade, the lease and how much of the earnings depend on the seller working in the business.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Opening a nursery on a lower budget<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The lower-capital routes avoid a purpose-built setting: a pre-school or playgroup in a hall with sessional hours and looser ratios, a nursery in a building already in Class E use, or childminding as a separate registration on domestic premises. Start Up Loans lends up to <strong>\u00a325,000<\/strong> per applicant at a fixed <strong>7.5%<\/strong>, unsecured, well short of a full day nursery but enough for some sessional settings.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-primary-color has-text-color has-link-color wp-elements-5\">Nursery franchise opportunities in the UK<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Franchising in the UK is governed by general contract law, with no franchise statute and no statutory pre-contract disclosure, as set out in <a href=\"https:\/\/lexpress-franchise.com\/en\/articles\/what-is-a-franchise\/\">what a franchise is<\/a>. Nursery franchising is established here, with Monkey Puzzle, Banana Moon and others operating networks of individually owned settings. None of them publishes entry terms on its own public pages, so any precise figure circulating for a nursery franchise comes from a third party rather than the brand. Where the regulatory responsibility sits matters more than the fee:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>The franchisee is the registered person<\/strong>: registration, the nominated individual and the manager are all the franchisee&#8217;s, and the Ofsted grade attaches to their setting<\/li>\n\n\n\n<li><strong>Expansion is gated on performance<\/strong>: Ofsted inspects a provider that applies to expand before its first inspection, and is likely to refuse approval where the provider is graded needs attention or worse<\/li>\n\n\n\n<li><strong>Cancellation is collective<\/strong>: where Ofsted cancels a registration, including for non-payment of fees, the cancellation applies to all settings under that registration<\/li>\n<\/ul>\n\n\n<div class=\"lf-gut-blog-post-cta-efference\" style=\"border-color: #9b51e0;\"><div class=\"lf-gut-blog-post-cta-efference__icon\" style=\"color: #9b51e0;\"><svg class=\"icon-thumb-up\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"35\" height=\"35\" viewBox=\"0 0 48 48\" fill=\"none\" style=\"color: #9b51e0;\"><path fill=\"currentColor\" d=\"M21.4998 4.89989L20.8499 4.13985L20.8474 4.14202L21.4998 4.89989ZM26.5397 4.89989L27.1922 4.14197L27.1842 4.13526L26.5397 4.89989ZM29.6998 7.62011L30.3547 6.86441L30.3522 6.86223L29.6998 7.62011ZM40.4197 18.3401L41.1776 17.6877L41.1754 17.6851L40.4197 18.3401ZM43.1398 21.5L43.8998 20.8501L43.8977 20.8476L43.1398 21.5ZM43.1398 26.54L43.8977 27.1924L43.9044 27.1845L43.1398 26.54ZM40.4197 29.6999L41.1754 30.3549L41.1776 30.3523L40.4197 29.6999ZM29.6998 40.4199L30.3521 41.1778L30.3547 41.1756L29.6998 40.4199ZM26.5397 43.1399L27.1896 43.8999L27.1921 43.8978L26.5397 43.1399ZM21.4998 43.1399L20.8474 43.8978L20.8553 43.9045L21.4998 43.1399ZM18.3398 40.4199L17.6849 41.1756L17.6874 41.1778L18.3398 40.4199ZM7.57978 29.6999L8.34803 29.0597L8.34206 29.0527L7.57978 29.6999ZM4.87977 26.52L4.11427 27.1635L4.11748 27.1672L4.87977 26.52ZM4.87977 21.52L4.11747 20.8728L4.11428 20.8766L4.87977 21.52ZM7.57978 18.3401L8.3421 18.9873L8.348 18.9803L7.57978 18.3401ZM18.3398 7.62011L17.6874 6.86223L17.6849 6.86442L18.3398 7.62011ZM22.6797 31.88L23.3869 31.1729L23.3416 31.1276L23.291 31.0886L22.6797 31.88ZM30.6198 30.4801L29.6694 30.1688L29.6583 30.2028L29.6496 30.2375L30.6198 30.4801ZM32.8597 23.64L31.917 23.3064L31.9131 23.3175L31.9094 23.3288L32.8597 23.64ZM26.3998 20.0802L25.4113 19.9286L25.4089 19.9442L25.407 19.9598L26.3998 20.0802ZM26.8597 17.0802L25.8819 16.8706L25.8758 16.8995L25.8713 16.9286L26.8597 17.0802ZM25.6398 15.0201L25.2859 15.9554L25.3046 15.9625L25.3235 15.9688L25.6398 15.0201ZM23.5798 15.68L22.7523 15.1185L22.7504 15.1213L23.5798 15.68ZM22.1496 5.65993C23.1528 4.80216 24.8649 4.79607 25.8953 5.66452L27.1842 4.13526C25.4146 2.64371 22.6067 2.63762 20.8499 4.13986L22.1496 5.65993ZM25.8873 5.65777L29.0474 8.37799L30.3522 6.86223L27.1921 4.14201L25.8873 5.65777ZM29.0448 8.3758C29.4608 8.73632 30.0056 9.02413 30.5348 9.22184C31.064 9.41956 31.6657 9.56005 32.2197 9.56005V7.56005C31.9738 7.56005 31.6155 7.49056 31.2347 7.34832C30.8539 7.20605 30.5387 7.0239 30.3547 6.86442L29.0448 8.3758ZM32.2197 9.56005H35.6198V7.56005H32.2197V9.56005ZM35.6198 9.56005C37.1875 9.56005 38.4797 10.8522 38.4797 12.4199H40.4797C40.4797 9.74759 38.292 7.56005 35.6198 7.56005V9.56005ZM38.4797 12.4199V15.8201H40.4797V12.4199H38.4797ZM38.4797 15.8201C38.4797 16.3655 38.6209 16.9672 38.8174 17.4959C39.0139 18.0247 39.3014 18.5765 39.6641 18.995L41.1754 17.6851C41.0181 17.5036 40.8356 17.1854 40.6921 16.7993C40.5486 16.4129 40.4797 16.0547 40.4797 15.8201H38.4797ZM39.6619 18.9925L42.3819 22.1524L43.8977 20.8476L41.1776 17.6877L39.6619 18.9925ZM42.3797 22.1499C43.2375 23.153 43.2436 24.8652 42.3751 25.8956L43.9044 27.1845C45.396 25.4149 45.402 22.607 43.8998 20.8501L42.3797 22.1499ZM42.3819 25.8876L39.6619 29.0476L41.1776 30.3523L43.8977 27.1924L42.3819 25.8876ZM39.6641 29.045C39.3035 29.461 39.0157 30.0058 38.818 30.535C38.6203 31.0642 38.4797 31.6659 38.4797 32.22H40.4797C40.4797 31.974 40.5492 31.6157 40.6915 31.2349C40.8338 30.8541 41.0159 30.5389 41.1754 30.3549L39.6641 29.045ZM38.4797 32.22V35.6201H40.4797V32.22H38.4797ZM38.4797 35.6201C38.4797 37.1878 37.1875 38.48 35.6198 38.48V40.48C38.292 40.48 40.4797 38.2924 40.4797 35.6201H38.4797ZM35.6198 38.48H32.2197V40.48H35.6198V38.48ZM32.2197 38.48C31.6744 38.48 31.0726 38.6211 30.544 38.8176C30.0152 39.014 29.4633 39.3015 29.0448 39.6642L30.3547 41.1756C30.5362 41.0183 30.8544 40.8358 31.2405 40.6923C31.6269 40.5488 31.9851 40.48 32.2197 40.48V38.48ZM29.0474 39.662L25.8874 42.382L27.1921 43.8978L30.3521 41.1778L29.0474 39.662ZM25.8899 42.3798C24.8867 43.2376 23.1746 43.2437 22.1442 42.3753L20.8553 43.9045C22.6249 45.3961 25.4328 45.4021 27.1896 43.8999L25.8899 42.3798ZM22.1521 42.382L18.9922 39.662L17.6874 41.1778L20.8474 43.8978L22.1521 42.382ZM18.9947 39.6642C18.5787 39.3037 18.0339 39.0159 17.5047 38.8182C16.9755 38.6205 16.3738 38.48 15.8198 38.48V40.48C16.0657 40.48 16.4241 40.5495 16.8048 40.6917C17.1856 40.834 17.5008 41.0161 17.6849 41.1756L18.9947 39.6642ZM15.8198 38.48H12.3597V40.48H15.8198V38.48ZM12.3597 38.48C10.792 38.48 9.49976 37.1878 9.49976 35.6201H7.49976C7.49976 38.2924 9.6875 40.48 12.3597 40.48V38.48ZM9.49976 35.6201V32.1999H7.49976V35.6201H9.49976ZM9.49976 32.1999C9.49976 31.6539 9.35826 31.0572 9.16508 30.5353C8.9714 30.0121 8.69178 29.4723 8.348 29.0598L6.81156 30.3401C6.96777 30.5276 7.14815 30.8478 7.28945 31.2296C7.43127 31.6127 7.49976 31.966 7.49976 32.1999H9.49976ZM8.34206 29.0527L5.64205 25.8728L4.11748 27.1672L6.81749 30.3472L8.34206 29.0527ZM5.64525 25.8766C4.79794 24.8685 4.79794 23.1715 5.64525 22.1635L4.11428 20.8766C2.64159 22.6285 2.64159 25.4115 4.11428 27.1635L5.64525 25.8766ZM5.64205 22.1672L8.34206 18.9873L6.81749 17.6928L4.11748 20.8728L5.64205 22.1672ZM8.348 18.9803C8.69178 18.5677 8.9714 18.028 9.16508 17.5047C9.35826 16.9828 9.49976 16.3861 9.49976 15.8401H7.49976C7.49976 16.074 7.43127 16.4273 7.28945 16.8104C7.14815 17.1922 6.96777 17.5124 6.81156 17.6999L8.348 18.9803ZM9.49976 15.8401V12.4199H7.49976V15.8401H9.49976ZM9.49976 12.4199C9.49976 10.8522 10.792 9.56005 12.3597 9.56005V7.56005C9.6875 7.56005 7.49976 9.74759 7.49976 12.4199H9.49976ZM12.3597 9.56005H15.8198V7.56005H12.3597V9.56005ZM15.8198 9.56005C16.3651 9.56005 16.9669 9.4189 17.4956 9.22247C18.0244 9.02599 18.5762 8.7385 18.9947 8.3758L17.6849 6.86442C17.5034 7.02171 17.1852 7.2042 16.799 7.34769C16.4127 7.49123 16.0544 7.56005 15.8198 7.56005V9.56005ZM18.9922 8.37798L22.1522 5.65777L20.8474 4.14202L17.6874 6.86224L18.9922 8.37798ZM19.1685 30.4314L22.0685 32.6714L23.291 31.0886L20.3911 28.8486L19.1685 30.4314ZM21.9726 32.5871C22.3408 32.9552 22.8395 33.1544 23.2304 33.2648C23.645 33.3819 24.0864 33.44 24.4598 33.44V31.44C24.2731 31.44 24.0145 31.4081 23.7741 31.3401C23.6565 31.3069 23.5592 31.2695 23.4859 31.233C23.4093 31.1948 23.3839 31.1699 23.3869 31.1729L21.9726 32.5871ZM24.4598 33.44H27.9998V31.44H24.4598V33.44ZM27.9998 33.44C28.799 33.44 29.5865 33.1456 30.2139 32.6881C30.842 32.2301 31.3818 31.5549 31.5899 30.7226L29.6496 30.2375C29.5777 30.5252 29.3675 30.83 29.0356 31.072C28.7031 31.3145 28.3205 31.44 27.9998 31.44V33.44ZM31.5701 30.7913L33.8101 23.9512L31.9094 23.3288L29.6694 30.1688L31.5701 30.7913ZM33.8025 23.9735C34.1312 23.0445 34.0165 22.0828 33.4742 21.3419C32.9352 20.6053 32.0571 20.2 31.0798 20.2V22.2C31.5024 22.2 31.7444 22.3647 31.8603 22.5231C31.973 22.6772 32.0483 22.9354 31.917 23.3064L33.8025 23.9735ZM31.0798 20.2H27.3398V22.2H31.0798V20.2ZM27.3398 20.2C27.3373 20.2 27.3416 20.1997 27.3504 20.2035C27.359 20.2074 27.3692 20.2142 27.3782 20.2243C27.3876 20.235 27.3914 20.2444 27.3923 20.2472C27.3932 20.2503 27.3881 20.2367 27.3925 20.2005L25.407 19.9598C25.2548 21.2156 26.1799 22.2 27.3398 22.2V20.2ZM27.3882 20.2317L27.8482 17.2317L25.8713 16.9286L25.4113 19.9286L27.3882 20.2317ZM27.8375 17.2897C28.1304 15.9229 27.2511 14.5031 25.956 14.0714L25.3235 15.9688C25.7084 16.0971 25.949 16.5575 25.8819 16.8706L27.8375 17.2897ZM25.9937 14.0848C25.3555 13.8433 24.6881 13.9027 24.1473 14.0902C23.612 14.2757 23.0868 14.6256 22.7523 15.1185L24.4072 16.2415C24.4528 16.1744 24.5875 16.0543 24.8023 15.9799C25.0114 15.9074 25.1841 15.9169 25.2859 15.9554L25.9937 14.0848ZM22.7504 15.1213L18.9104 20.8212L20.5691 21.9387L24.4091 16.2387L22.7504 15.1213ZM15.9998 29.6399V20.48H13.9998V29.6399H15.9998ZM15.9998 20.48C15.9998 20.2144 16.0287 20.0485 16.0604 19.9495C16.0888 19.8605 16.1152 19.837 16.121 19.8316C16.1424 19.812 16.2914 19.7 16.8798 19.7V17.7C16.1482 17.7 15.3571 17.8179 14.7685 18.3583C14.1585 18.9183 13.9998 19.7102 13.9998 20.48H15.9998ZM16.8798 19.7H17.8198V17.7H16.8798V19.7ZM17.8198 19.7C18.3941 19.7 18.5477 19.8104 18.574 19.8344C18.5776 19.8376 18.6998 19.9386 18.6998 20.48H20.6998C20.6998 19.7014 20.532 18.9123 19.9205 18.3556C19.3318 17.8195 18.5455 17.7 17.8198 17.7V19.7ZM18.6998 20.48V29.6399H20.6998V20.48H18.6998ZM18.6998 29.6399C18.6998 30.1755 18.5805 30.2788 18.5752 30.2838C18.5511 30.3061 18.3996 30.4199 17.8198 30.4199V32.4199C18.56 32.4199 19.3484 32.2937 19.9343 31.751C20.539 31.191 20.6998 30.4043 20.6998 29.6399H18.6998ZM17.8198 30.4199H16.8798V32.4199H17.8198V30.4199ZM16.8798 30.4199C16.2914 30.4199 16.1424 30.3079 16.121 30.2883C16.1152 30.2829 16.0888 30.2593 16.0604 30.1704C16.0287 30.0714 15.9998 29.9055 15.9998 29.6399H13.9998C13.9998 30.4097 14.1585 31.2015 14.7685 31.7616C15.3571 32.302 16.1482 32.4199 16.8798 32.4199V30.4199Z\"\/><\/svg><\/div><p class=\"lf-gut-blog-post-cta-efference__title lf-transform-none\">Editor&#8217;s tip<\/p><div class=\"lf-gut-blog-post-cta-efference__lede\">\n<div class=\"wp-block-lexpress-highlighted-text-v2 lf-gut-blog-post-cta-efference__lede\">\n<p class=\"wp-block-paragraph\">Ofsted publishes every setting&#8217;s inspection report, which makes this one of the few UK sectors where a buyer or a prospective franchisee can check performance independently. Before buying a nursery, read the last two reports alongside the occupancy by room, the split between funded and fee income, the lease terms, and whether the business is sold as shares, because a share sale keeps the registration and an asset sale does not.<\/p>\n<\/div>\n<\/div><\/div>\n\n\n<h2 class=\"wp-block-heading has-primary-color has-text-color has-link-color wp-elements-6\">The practical difficulties operators report<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Ratios against wage rises<\/strong>: staffing levels are fixed by law while the wage floor rises each April, so pay increases cannot be absorbed by thinning cover<\/li>\n\n\n\n<li><strong>Funded rates are set by the council<\/strong>: a large share of income arrives at an hourly rate the provider does not set, on the council&#8217;s schedule<\/li>\n\n\n\n<li><strong>Recruitment gates growth<\/strong>: a room opens only when qualified staff are in post, and since September 2026 only once their DBS check is back<\/li>\n\n\n\n<li><strong>Premises cost before income<\/strong>: rent, conversion and pre-opening payroll all run during a registration process of 12 weeks or more<\/li>\n\n\n\n<li><strong>New competition from schools<\/strong>: government capital is funding nurseries in schools, adding places in some areas<\/li>\n\n\n\n<li><strong>A published grade<\/strong>: the inspection outcome is public and directly affects enrolment, expansion and resale value<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading has-primary-color has-text-color has-link-color wp-elements-7\">The bottom line<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">A nursery is cheap to register and expensive to run. Ofsted charges \u00a3220 and takes about 12 weeks, but the ratios fix the staff cost of every child-hour, councils set the rate for funded hours, and VAT on every purchase is a cost the nursery cannot recover. On illustrative figures, ratio staff take about \u00a34.79 of each under-two hour and \u00a31.79 of each hour for a three- or four-year-old, against 2026\/27 funded rates of about \u00a311 to \u00a312 and \u00a36. Occupancy by room and the age mix decide whether the setting pays, and a share sale, not an asset sale, is how a trading nursery changes hands without stopping.<\/p>\n\n\n\n        <div class=\"lf-gut-faq-v2-block\">\n                            <span                    class=\"lf-gut-faq-v2-block__title\"\n                    style=\"text-transform: none;\"\n                >\n                    Frequently asked questions about opening a nursery in the UK                <\/span>\n                        \n\n<div class=\"wp-block-lexpress-faq-v2-item lf-gut-faq-v2-block__item\"><h3 class=\"lf-gut-faq-v2-block__question-wrapper\"><button class=\"lf-gut-faq-v2-block__question\" type=\"button\" aria-expanded=\"false\" data-target=\".lf-gut-answer-ns4p8kq2n\"><span class=\"lf-gut-faq-v2-block__question-text\">Do you need Ofsted registration to open a nursery?<\/span><span class=\"lf-gut-faq-v2-block__question-icon\"><img loading=\"lazy\" class=\"icon-thumb-up\" src=\"https:\/\/feb26.lexpress-franchise.com\/wp-content\/uploads\/2026\/06\/i-chevron-white.svg\" alt=\"\" width=\"16\" height=\"16\" decoding=\"async\"\/><\/span><\/button><\/h3><div class=\"lf-gut-faq-v2-block__answer lf-gut-faq-v2-answer-ns4p8kq2nlf-gut-answer-ns4p8kq2n\">\n<p class=\"wp-block-paragraph\">Yes, in England. Providing childcare without being registered is an offence, and so is operating from premises Ofsted has not approved. A day nursery joins the Early Years Register, which requires meeting the EYFS framework. Registration attaches to the legal entity and to each set of premises.<\/p>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-lexpress-faq-v2-item lf-gut-faq-v2-block__item\"><h3 class=\"lf-gut-faq-v2-block__question-wrapper\"><button class=\"lf-gut-faq-v2-block__question\" type=\"button\" aria-expanded=\"false\" data-target=\".lf-gut-answer-ns7q3vx5m\"><span class=\"lf-gut-faq-v2-block__question-text\">How much does Ofsted registration cost for a nursery?<\/span><span class=\"lf-gut-faq-v2-block__question-icon\"><img loading=\"lazy\" class=\"icon-thumb-up\" src=\"https:\/\/feb26.lexpress-franchise.com\/wp-content\/uploads\/2026\/06\/i-chevron-white.svg\" alt=\"\" width=\"16\" height=\"16\" decoding=\"async\"\/><\/span><\/button><\/h3><div class=\"lf-gut-faq-v2-block__answer lf-gut-faq-v2-answer-ns7q3vx5mlf-gut-answer-ns7q3vx5m\">\n<p class=\"wp-block-paragraph\">\u00a3220 to join the Early Years Register, with the Childcare Register free at the same time, and \u00a3220 a year after that. Joining only the Childcare Register costs \u00a3114, and a reduced Early Years Register fee of \u00a335 applies to small-scale provision. Each additional setting carries its own fee.<\/p>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-lexpress-faq-v2-item lf-gut-faq-v2-block__item\"><h3 class=\"lf-gut-faq-v2-block__question-wrapper\"><button class=\"lf-gut-faq-v2-block__question\" type=\"button\" aria-expanded=\"false\" data-target=\".lf-gut-answer-ns2r9mt6p\"><span class=\"lf-gut-faq-v2-block__question-text\">What are the staff ratios in a UK nursery?<\/span><span class=\"lf-gut-faq-v2-block__question-icon\"><img loading=\"lazy\" class=\"icon-thumb-up\" src=\"https:\/\/feb26.lexpress-franchise.com\/wp-content\/uploads\/2026\/06\/i-chevron-white.svg\" alt=\"\" width=\"16\" height=\"16\" decoding=\"async\"\/><\/span><\/button><\/h3><div class=\"lf-gut-faq-v2-block__answer lf-gut-faq-v2-answer-ns2r9mt6plf-gut-answer-ns2r9mt6p\">\n<p class=\"wp-block-paragraph\">In England, one adult to three children under two, one to five for two-year-olds, and one to eight for three- and four-year-olds, or one to thirteen where a Level 6 qualified practitioner works directly with the children. From September 2026 the framework makes clear that ratios apply across the whole provision.<\/p>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-lexpress-faq-v2-item lf-gut-faq-v2-block__item\"><h3 class=\"lf-gut-faq-v2-block__question-wrapper\"><button class=\"lf-gut-faq-v2-block__question\" type=\"button\" aria-expanded=\"false\" data-target=\".lf-gut-answer-ns5c8wn3f\"><span class=\"lf-gut-faq-v2-block__question-text\">How much do councils pay nurseries for funded hours?<\/span><span class=\"lf-gut-faq-v2-block__question-icon\"><img loading=\"lazy\" class=\"icon-thumb-up\" src=\"https:\/\/feb26.lexpress-franchise.com\/wp-content\/uploads\/2026\/06\/i-chevron-white.svg\" alt=\"\" width=\"16\" height=\"16\" decoding=\"async\"\/><\/span><\/button><\/h3><div class=\"lf-gut-faq-v2-block__answer lf-gut-faq-v2-answer-ns5c8wn3flf-gut-answer-ns5c8wn3f\">\n<p class=\"wp-block-paragraph\">Each council sets its own rates within the government formula. For 2026\/27, North East Lincolnshire pays \u00a35.98 an hour for three- and four-year-olds, \u00a38.32 for two-year-olds and \u00a311.34 for under-twos, and Buckinghamshire \u00a36.49, \u00a39.03 and \u00a312.42.<\/p>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-lexpress-faq-v2-item lf-gut-faq-v2-block__item\"><h3 class=\"lf-gut-faq-v2-block__question-wrapper\"><button class=\"lf-gut-faq-v2-block__question\" type=\"button\" aria-expanded=\"false\" data-target=\".lf-gut-answer-ns8v2zr4k\"><span class=\"lf-gut-faq-v2-block__question-text\">How much do parents pay for nursery in England?<\/span><span class=\"lf-gut-faq-v2-block__question-icon\"><img loading=\"lazy\" class=\"icon-thumb-up\" src=\"https:\/\/feb26.lexpress-franchise.com\/wp-content\/uploads\/2026\/06\/i-chevron-white.svg\" alt=\"\" width=\"16\" height=\"16\" decoding=\"async\"\/><\/span><\/button><\/h3><div class=\"lf-gut-faq-v2-block__answer lf-gut-faq-v2-answer-ns8v2zr4klf-gut-answer-ns8v2zr4k\">\n<p class=\"wp-block-paragraph\">The Coram Childcare Survey 2026 puts the average price of 25 hours a week for a child under two at \u00a3188.75 before any funding, about \u00a39,438 over 50 weeks, and \u00a3174.85 for a two-year-old. Eligible working parents now receive 30 funded hours from nine months, which lowers what they pay.<\/p>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-lexpress-faq-v2-item lf-gut-faq-v2-block__item\"><h3 class=\"lf-gut-faq-v2-block__question-wrapper\"><button class=\"lf-gut-faq-v2-block__question\" type=\"button\" aria-expanded=\"false\" data-target=\".lf-gut-answer-ns6r1np9t\"><span class=\"lf-gut-faq-v2-block__question-text\">Is a nursery business VAT registered?<\/span><span class=\"lf-gut-faq-v2-block__question-icon\"><img loading=\"lazy\" class=\"icon-thumb-up\" src=\"https:\/\/feb26.lexpress-franchise.com\/wp-content\/uploads\/2026\/06\/i-chevron-white.svg\" alt=\"\" width=\"16\" height=\"16\" decoding=\"async\"\/><\/span><\/button><\/h3><div class=\"lf-gut-faq-v2-block__answer lf-gut-faq-v2-answer-ns6r1np9tlf-gut-answer-ns6r1np9t\">\n<p class=\"wp-block-paragraph\">Childcare supplied by a registered provider is exempt from VAT, so fees carry no VAT, but the nursery cannot recover the VAT it pays on furniture, equipment, fit-out and services. A cot priced at \u00a3374.99 excluding VAT costs the nursery \u00a3449.99.<\/p>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-lexpress-faq-v2-item lf-gut-faq-v2-block__item\"><h3 class=\"lf-gut-faq-v2-block__question-wrapper\"><button class=\"lf-gut-faq-v2-block__question\" type=\"button\" aria-expanded=\"false\" data-target=\".lf-gut-answer-ns3l6xq8w\"><span class=\"lf-gut-faq-v2-block__question-text\">What qualifications does a nursery manager need?<\/span><span class=\"lf-gut-faq-v2-block__question-icon\"><img loading=\"lazy\" class=\"icon-thumb-up\" src=\"https:\/\/feb26.lexpress-franchise.com\/wp-content\/uploads\/2026\/06\/i-chevron-white.svg\" alt=\"\" width=\"16\" height=\"16\" decoding=\"async\"\/><\/span><\/button><\/h3><div class=\"lf-gut-faq-v2-block__answer lf-gut-faq-v2-answer-ns3l6xq8wlf-gut-answer-ns3l6xq8w\">\n<p class=\"wp-block-paragraph\">At least a Level 3 childcare qualification. The owner does not need one, but an organisation must appoint a nominated individual accountable for the registration. Staff qualifications also decide who counts within the ratios, under standards updated from September 2026.<\/p>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-lexpress-faq-v2-item lf-gut-faq-v2-block__item\"><h3 class=\"lf-gut-faq-v2-block__question-wrapper\"><button class=\"lf-gut-faq-v2-block__question\" type=\"button\" aria-expanded=\"false\" data-target=\".lf-gut-answer-ns9p4jm1s\"><span class=\"lf-gut-faq-v2-block__question-text\">Can staff start work before their DBS check comes back?<\/span><span class=\"lf-gut-faq-v2-block__question-icon\"><img loading=\"lazy\" class=\"icon-thumb-up\" src=\"https:\/\/feb26.lexpress-franchise.com\/wp-content\/uploads\/2026\/06\/i-chevron-white.svg\" alt=\"\" width=\"16\" height=\"16\" decoding=\"async\"\/><\/span><\/button><\/h3><div class=\"lf-gut-faq-v2-block__answer lf-gut-faq-v2-answer-ns9p4jm1slf-gut-answer-ns9p4jm1s\">\n<p class=\"wp-block-paragraph\">Not from 1 September 2026. The updated EYFS framework requires new employees to wait until their enhanced criminal record check has been received before starting work, and extends enhanced checks to volunteers.<\/p>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-lexpress-faq-v2-item lf-gut-faq-v2-block__item\"><h3 class=\"lf-gut-faq-v2-block__question-wrapper\"><button class=\"lf-gut-faq-v2-block__question\" type=\"button\" aria-expanded=\"false\" data-target=\".lf-gut-answer-ns1a7kd5r\"><span class=\"lf-gut-faq-v2-block__question-text\">How much does a nursery sell for?<\/span><span class=\"lf-gut-faq-v2-block__question-icon\"><img loading=\"lazy\" class=\"icon-thumb-up\" src=\"https:\/\/feb26.lexpress-franchise.com\/wp-content\/uploads\/2026\/06\/i-chevron-white.svg\" alt=\"\" width=\"16\" height=\"16\" decoding=\"async\"\/><\/span><\/button><\/h3><div class=\"lf-gut-faq-v2-block__answer lf-gut-faq-v2-answer-ns1a7kd5rlf-gut-answer-ns1a7kd5r\">\n<p class=\"wp-block-paragraph\">No official average exists. Nurseries advertised through business brokers in 2024 and 2025 ranged from \u00a3100,000 for settings of about 26 to 32 places reporting earnings of around \u00a362,000 to \u00a366,000, to \u00a32.475 million for a 67-place London nursery projecting \u00a3450,000. Figures are the sellers&#8217;, not audited.<\/p>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-lexpress-faq-v2-item lf-gut-faq-v2-block__item\"><h3 class=\"lf-gut-faq-v2-block__question-wrapper\"><button class=\"lf-gut-faq-v2-block__question\" type=\"button\" aria-expanded=\"false\" data-target=\".lf-gut-answer-ns4d9fb2n\"><span class=\"lf-gut-faq-v2-block__question-text\">Does buying a nursery transfer its Ofsted registration?<\/span><span class=\"lf-gut-faq-v2-block__question-icon\"><img loading=\"lazy\" class=\"icon-thumb-up\" src=\"https:\/\/feb26.lexpress-franchise.com\/wp-content\/uploads\/2026\/06\/i-chevron-white.svg\" alt=\"\" width=\"16\" height=\"16\" decoding=\"async\"\/><\/span><\/button><\/h3><div class=\"lf-gut-faq-v2-block__answer lf-gut-faq-v2-answer-ns4d9fb2nlf-gut-answer-ns4d9fb2n\">\n<p class=\"wp-block-paragraph\">No, not in an asset sale. Registration attaches to the legal entity and the approved premises, so the buyer must register before providing childcare there. In a share sale the buyer acquires the company that already holds the registration, which is why some are sold that way.<\/p>\n<\/div><\/div>\n\n        <\/div>\n\n        ","protected":false},"excerpt":{"rendered":"<p>Providing childcare without Ofsted registration is a criminal offence, and registration costs \u00a3220 and takes around 12 weeks. What decides whether a nursery pays is set elsewhere: the ratios fix the staff cost of every child-hour, and councils set the hourly rate for funded places, which since September 2025 cover children from nine months for [&hellip;]<\/p>\n","protected":false},"author":994,"featured_media":1818733,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"1810719,281851,1818522,1546750,1818249,1485730","_relevanssi_noindex_reason":"","footnotes":""},"categories":[3583,875,887],"tags":[],"type-de-post":[438],"class_list":["post-1818724","post","type-post","status-publish","format-standard","has-post-thumbnail","category-entrepreneurship","category-getting-started","category-market-entry","type-de-post-articles"],"acf":[],"permalink_manager":null,"_links":{"self":[{"href":"https:\/\/lexpress-franchise.com\/en\/wp-json\/wp\/v2\/posts\/1818724","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lexpress-franchise.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lexpress-franchise.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lexpress-franchise.com\/en\/wp-json\/wp\/v2\/users\/994"}],"replies":[{"embeddable":true,"href":"https:\/\/lexpress-franchise.com\/en\/wp-json\/wp\/v2\/comments?post=1818724"}],"version-history":[{"count":5,"href":"https:\/\/lexpress-franchise.com\/en\/wp-json\/wp\/v2\/posts\/1818724\/revisions"}],"predecessor-version":[{"id":1818903,"href":"https:\/\/lexpress-franchise.com\/en\/wp-json\/wp\/v2\/posts\/1818724\/revisions\/1818903"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/lexpress-franchise.com\/en\/wp-json\/wp\/v2\/media\/1818733"}],"wp:attachment":[{"href":"https:\/\/lexpress-franchise.com\/en\/wp-json\/wp\/v2\/media?parent=1818724"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lexpress-franchise.com\/en\/wp-json\/wp\/v2\/categories?post=1818724"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lexpress-franchise.com\/en\/wp-json\/wp\/v2\/tags?post=1818724"},{"taxonomy":"type-de-post","embeddable":true,"href":"https:\/\/lexpress-franchise.com\/en\/wp-json\/wp\/v2\/type-de-post?post=1818724"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}