Up to 9,000 primaries will be affected, and education secretary Ruth Kelly has described the move as "the most significant building and refurbishment programme since the Victorian era".
The boost to the extended schools programme was welcomed by children's charities.
Anne Longfield, chief executive of 4Children, said the additional funding represented "a crucial building block" towards the goal for all schools to offer extended services by 2010. But she said ongoing investment would be crucial if services were to be high quality and sustainable.
Research by the charity showed 11,000 out-of-school year-round childcare schemes were open from 8am to 6pm, but just nine per cent of schools had on-site facilities.
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