DfE introduces new 'Form N' to streamline consent process for academies to open third-party operated nurseries on school sites.
This is the result of the recent Labour push to make nursery places available, and the introduction of funding by the Department for Education (DfE) to facilitate this.
How can third party nurseries occupy a school site?
Third party operated nurseries (as distinct from nurseries operated by academies themselves) usually occupy part of a school site in one of two ways, either under a licence or a lease.
An arrangement is likely to be a licence if the operator only occupies the space at certain times and when the space is not being used, it is used for other purposes by the academy. There may also often be the option for the academy to move the operator to a different space on the site, if it is required.
An arrangement is likely to be a lease if the operator is the exclusive occupier of the space, if it can treat the space as its own and exclude both the academy and third parties from the space.
Why is DfE consent required?
Academies can be required to obtain the consent of the Secretary of State to grant leases and licences; an obligation that stems from the requirements of legislation, the Academy Trust Handbook and academies' funding arrangements.
The Form N has now been introduced to streamline the consent application process to grant a lease or a licence (referred to as a 'disposal') to a third party nursery operator. The new Form N is a shortened form which asks about the terms of the proposed disposal and also asks academies to provide information on the funding for the nursery. It is hoped that Form N applications will be quicker to process but it is important for academies to consider the terms of disposal and agree those terms before submitting the Form.
What other consents might be required?
Academies will need to consider how they occupy their school site before granting a lease or a licence. Academies can own the freehold to their sites, be a tenant under a lease and there are alternative arrangements. Academies may be required to liaise with landlords and other stakeholders to obtain consent to grant a lease or a licence.
As well as consent to enter into a lease or a licence, academies should also consider whether consent is required to carry out works to make them suitable for operating a nursery and/or change the use of buildings. This can include planning consent and compliance with building regulations if there are works.
We can assist with identifying which consents will be required to grant a licence or a lease to a third party nursery, as well as supporting with the development of heads of terms and the licence/ lease itself.