How to Start a Private Preschool or Small Nursery in England

Starting a private preschool in England is one of the more regulated small business ventures you can undertake. The Early Years sector is governed by Ofsted registration requirements, the statutory Early Years Foundation Stage (EYFS) framework, specific staff-to-child ratios, premises standards, and DBS checks for every adult in the building. None of these requirements are unreasonable — they exist to protect very young children — but understanding them before you start saves enormous time and prevents the most common setup mistakes.

This guide covers what is required to start a small, private preschool or nursery in England legally, along with the micro-school alternative for families whose children are approaching compulsory school age.

Who Needs to Register with Ofsted

Any person providing early education or childcare in England on a regular basis for children under the age of eight must register with Ofsted — unless a specific exemption applies.

"Regular basis" is defined as more than two hours a day on more than five days in any calendar year. This catches almost every preschool arrangement. The registration requirement applies whether you are running a dedicated nursery premises, a home-based childminding practice, or a community preschool in a church hall.

There are two Ofsted registers: the Early Years Register (EYR) for providers caring for children from birth to the 31st of August following their fifth birthday, and the Childcare Register for older children. Most private preschools serving three to four year olds register on the Early Years Register.

Operating a setting that requires Ofsted registration without having registered is a criminal offence. The consequences include prosecution, fines, and closure.

The Early Years Foundation Stage Framework

All providers registered on the Early Years Register must implement the Early Years Foundation Stage (EYFS) statutory framework. This covers the learning and development requirements for children from birth to age five, along with safeguarding and welfare requirements.

The EYFS is less prescriptive than the National Curriculum — it is built around seven areas of learning (communication and language, physical development, personal, social and emotional development, literacy, mathematics, understanding the world, and expressive arts and design) and expects providers to observe, assess, and plan responsively based on individual children's interests and developmental stage rather than following a rigid timetable.

Assessment under the EYFS takes the form of ongoing observations and a statutory progress check at age two (completed by a key person) and an Early Years Foundation Stage Profile completed in the final term before a child enters Year 1. For a small private preschool, these documentation requirements are manageable — but they do require a systematic approach to observation records and developmental tracking.

Staff Ratios and Qualifications

Early Years settings in England must meet statutory staff-to-child ratios:

• Children under 2: 1 adult per 3 children
• Children aged 2: 1 adult per 4 children
• Children aged 3 and over: 1 adult per 8 children (rising to 1 per 13 where the manager holds a relevant Level 6 qualification and at least half the staff hold Level 3)

At least one member of staff must hold a full paediatric first aid (PFA) certificate, renewed every three years. Where two or more people are present, at least one PFA-trained person must be on the premises at all times.

Staff qualification requirements depend on the ratio model you use. To operate the more favourable 1:13 ratio for three- and four-year-olds, the manager must hold a Level 6 early education qualification (equivalent to a degree-level Early Years qualification or Qualified Teacher Status with early years experience).

Every staff member, regular volunteer, and the proprietor must hold an enhanced DBS check. As of December 2024, the government fee is £49.50 plus umbrella body administration charges for self-employed applicants. Ofsted will not register a setting where required checks are outstanding.

The Ofsted Registration Process

Registration with Ofsted begins with an online application through the Ofsted portal, submitting details of the proposed setting, its owners, and all staff. Ofsted will conduct a suitability check on the applicant and nominated individuals — including criminal record checks, health declarations, and references — and will inspect the premises before granting registration.

The inspection assesses whether the premises are suitable for the age group and proposed numbers (adequate floor space, outdoor access, toilet and washing facilities, ventilation, and heating), whether safeguarding policies are in place, and whether the setting's plan demonstrates understanding of the EYFS requirements.

Ofsted charges an application fee for registration. Once registered, settings receive routine inspections — typically every four to six years for 'Good' or 'Outstanding' settings, more frequently for settings with previous concerns.

The Children's Wellbeing and Schools Bill, progressing through Parliament in 2025/26, is expected to further tighten oversight of out-of-school settings, including registration requirements for some part-time provision that currently sits outside the Ofsted Early Years Register.

Insurance, Premises, and Legal Structure

Standard home insurance does not cover a childcare business. You need specialist public liability insurance — most providers in the Early Years sector carry £5 million or £10 million cover. If you employ any staff, employers' liability insurance covering at least £5 million is a statutory requirement under the Employers' Liability (Compulsory Insurance) Act 1969.

Running a daily preschool from a residential property requires planning permission for a change of use to Class F1(a) educational use under the Town and Country Planning (Use Classes) Order. Most small private preschools operate from community halls, church premises, or purpose-built Early Years spaces to avoid this complication.

For legal structure, a Community Interest Company (CIC) provides personal liability protection and straightforward Companies House registration, making it a practical choice for most small private preschool founders. A Charitable Incorporated Organisation (CIO) is appropriate if you intend to raise significant charitable funding and are committed to a formal charitable governance structure from the outset.

The Micro-School Alternative for Older Children

Many families who explore starting a private preschool are actually thinking about provision for children slightly older — four to eleven years old — who are approaching or already at compulsory school age. Once a child reaches compulsory school age (defined as the term following their fifth birthday), the Early Years Register requirements no longer apply, but the Education and Skills Act 2008 provisions kick in.

A setting providing full-time education to five or more children of compulsory school age must register as an independent school. Ofsted pursued 330 referrals to suspected unregistered schools in 2024–25 alone.

For families and educators thinking about small-group provision for primary-age children in home education arrangements, a micro-school or learning pod operating below the five-pupil full-time threshold offers a legal path that avoids the full independent school registration process while still providing structured, high-quality education in small groups.

The England Micro-School & Pod Kit covers the legal framework, safeguarding templates, parent agreements, and operational tools for this age group — the compulsory school age provision that sits between Early Years and formal independent school registration, and where the compliance picture is most frequently misunderstood.

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