Around 71 communities across England will benefit from the money, allocated from the New Opportunities Fund's Building Neighbourhood Nurseries programme, which will enable nursery providers to increase the number of day places available and improve childcare facilities.
One beneficiary is the Jumping Jacks Children's Centre, based in Wigton, Cumbria, which was awarded a grant of 80,000 to refurbish its first floor and to provide round-the-clock nursery care, seven days a week.
The centre will offer its rolling service from next March and will be able to take 20 children overnight. Each of the seven bedrooms will be themed in a style appropriate to the age group, and parents will be able to drop children off for the twilight session from 6pm to 8.30pm or leave them overnight from 8.30pm to 7am.
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