“Not a single penny” of Building Blocks fund has been spent

Grant to improve capacity not spent

“Not a single penny” of the Building Blocks grant has been spent, according to Labour’s Marie Sherlock TD, who raised the matter recently with the Tánaiste, Simon Harris TD, during Leaders’ Questions in the Dáil.

Deputy Sherlock was referring to the government’s Building Blocks Extension Scheme, which is providing €25 million in funding to deliver 1,500 additional Early Years places. According to the Deputy, funding under the scheme is due to be spent, in total, by this December but “Pobal only sent the contracts two weeks ago. We now learn from providers that there is missing paperwork. The earliest date for construction is two or three months away and all the while construction costs have gone up since applications were submitted at the start of this year. Some providers have told me they are unsure whether they will be able to proceed with their planned expansion because the original grant will not cover the cost of works.”

Lacking urgency

During the exchange, Marie Sherlock TD (Labour) accused the government of lacking urgency and being on a “go slow” when it comes to the provision of Early Years places.

“Action Plan on Childcare”

In response, the Tánaiste stated that the next “practical step” will be for the government to publish its promised “action plan on childcare”, which will include a roadmap and actions on how the government will meet its 21 commitments on Early Years and School Age Care, as outlined in the Programme for Government.  He said he expects to see the published plan in the “coming weeks”.

Staff Funding Additional Contribution and Core Funding

In a recent Parliamentary Question (PQ), the Programme for Government, explained that the new Staff Funding Additional Contribution and the Graduate Premiums are applied separately to the Base Rate. 

The calculation of a service’s Core Funding grant contains multiple elements, the Base Rate, Graduate Premiums, Targeted Measures and the new Staff Funding Additional Contribution.

Core Funding has a minimum base rate allocation, currently set at €14,400 and a maximum base rate allocation, currently set at €450,000. No service will receive more than this amount in respect of their capacity. The Graduate Premiums and Staff Funding Additional Contribution are applied separately to these base rates and can bring a service’s allocation above the minimum or maximum value. The graduate premiums provide additional funding on the basis of graduate leadership in a service, while the Staff Funding Additional Contribution is solely to support employers meet the costs of further increases to the minimum rates of pay following the new Employment Regulation Order (ERO), which came into effect on 13 October 2025.

The Staff Funding Additional Contribution is ring-fenced for staff pay and conditions and can only be used for this purpose. The amount of funding released from the ring-fenced funding will be proportionate to the cost of the agreed EROs, with a maximum of €1.14 payable per hour through the Staff Funding Additional Contribution.

The calculation of the Staff Funding Additional Contribution per service reflects that the funding that has been available for graduate-led provision for the previous three years can, and should, be facilitating higher rates of pay for graduates. It will be calculated as:

Minimum staffing hours minus Graduate Lead Educator Premium hours multiplied by a maximum of €1.14 per eligible hour.

Core Funding
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Withdrawals

As of 5 August 2025, there were 4,807 services listed as being open on the Early Years Platform, of which 141 (3%) had left Core Funding at one point over the past three years and continue to operate outside of this scheme. A further 336 services (7%) had left Core Funding at one point over the past three years but later rejoined and are currently signed up to the third year of the scheme. (PQ)

Auto enrolment information session

A bespoke online information session, in conjunction with the Department of Social Protection, on auto-enrolment for Early Years and School Age Care service providers will be shared with service providers as soon as it is confirmed (PQ).

Capacity
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Core Funding to increase capacity by just 4.2%

“Budget 2026 has made provision for the fifth programme year (2026/7) for a further expansion in supply of 4.2%.” (PQ)

Capital Funding

€36 million (2% of the overall Early Years and School Age Care funding allocation) in capital funding will be provided in 2026 for the following:

•       A new Building Blocks Extension Scheme will open in 2026 for extensions and modifications to existing premises. This will deliver approximately 1,500 places. Details to be announced in early 2026. (PQ)
•       A new programme of acquisition and fit-out of state-led Early Years and School Age Care settings to meet demand for affordable and accessible places. With a particular focus on full-day provision for younger children, 700 additional places are expected in 2026 under this new programme. (Minister’s Budget Day press conference).

Baby rooms

11% of settings in Core Funding have a baby room (under one year old), according to a response to a parliamentary question (PQ) received by Fine Gael’s spokesperson on Childcare, Emer Currie TD. In a separate PQ, the Minister for Children, Disability and Equality, Norma Foley TD, wrote that due to greater supports for parents to avail of maternity, paternity and parental leaves, there is likely to be a reduction in the numbers of very young children in early learning and care settings.

School Age Care is growing

261 new School Age Care services opened in 2024. Estimated enrolments in school-age childcare, based on Sector Profile data, have grown by 56% over the last two years. (PQ)

Childminding
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Registered Childminders

As of the end of August 2025, there were 136 childminders registered with Tusla. 109 Tusla-registered childminders currently have a National Childcare Scheme contract. (PQ). There are an estimated 13,000 childminders in the country.

During Oral Questions in late September, Sinn Féin’s Claire Kerrane TD asked about a proposed review of the Childminding regulations. In response, the Minister stated that she is “committed to that review taking place during the three-year transition period,” which ends in September 2027.

Administrative Burden

When asked about the status of the plan to relieve the administrative burden for providers, Minister Foley responded, “the Action Plan which will outline short-term, medium-term, and long-term administrative and regulatory simplification measures will be finalised and published in Autumn 2025.”

Single Agency

It is anticipated that the analysis, planning, and consultation phase of the new Single Agency for the Early Years and School Age Care system will be concluded in late 2025 with the production of a consolidated report on the design of the agency. A detailed costing exercise is also underway and is scheduled to conclude in late 2025. The work will culminate in a costed agency design, including the remit, organisational structure and service delivery model, which will be presented to Government for approval. (PQ)

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