Ireland has a well-documented shortage of early years places. The Building Blocks Scheme is one of the Government's most direct tools for addressing that gap. If you are thinking about expanding your capacity, upgrading your facilities or taking on a new premises in 2026, this grant scheme could fund a significant part of that journey. Here is everything you need to know.
What Is the Building Blocks Scheme?
The Building Blocks Scheme is a capital grant programme administered by POBAL on behalf of the Department of Children, Equality, Disability, Integration and Youth (DCEDIY). Its core purpose is to create new early years and school-age childcare places, improve existing facilities and support the physical expansion of quality childcare provision across Ireland.
The scheme is one of the primary vehicles through which the Government is funding the expansion of the childcare sector under the Together for Better national childcare strategy in 2026. It is a capital grant, not a revenue grant. That means it funds physical assets: buildings, fit-outs and equipment. It does not cover wages, rent or day-to-day running costs.
The Three Types of Building Blocks Grants
1. Equipment Grant
The most accessible grant type. Funds the purchase of equipment, furnishings and resources to improve early learning environments. Ideal for services making targeted improvements without major building works. Typical range up to €15,000 subject to call conditions.
2. Minor Capital Grant
Funds small to medium building works such as internal refurbishment, room conversions, outdoor play area creation and accessibility upgrades. Typical range €15,000 to €75,000 subject to call conditions.
3. Major Capital Grant
The largest category, designed for significant new builds, major extensions or large-scale refurbishments that create substantial new childcare capacity. These are highly competitive and require a strong business case. Typical range €75,000 to €2 million and above.
Who Is Eligible to Apply?
- You must be a registered early years service with a current Tusla registration certificate or be actively progressing registration
- You must be registered on the POBAL PIP system with an up-to-date service profile
- Your service must be participating in Core Funding or committing to participate upon completion of works
- You must demonstrate tenure security on your premises, typically a minimum lease of 10 to 15 years for major capital grants
- Proposed works must result in a net increase in childcare places or a demonstrable improvement in quality
- You must be able to fund any element of the project not covered by the grant, as most grants operate on a co-funding basis
Building Blocks grants are only available during specific call periods announced by POBAL. Monitor the POBAL website and subscribe to updates from your local City or County Childcare Committee so you never miss an opening.
What You Can and Cannot Spend the Grant On
Eligible spend includes construction and fit-out works, architect and professional fees within limits, outdoor play equipment and fencing, furniture and fixed fittings, accessibility upgrades, and IT equipment directly linked to service delivery.
Ineligible spend includes staff wages and salaries, rent and mortgage payments, consumables and everyday supplies, marketing and promotional costs, VAT where it can be reclaimed, and personal vehicles.
The Application Process Step by Step
- Monitor for the call. POBAL announces Building Blocks calls through their website and via local CCCs. Sign up for notifications well in advance.
- Attend POBAL and CCC information sessions. These sessions explain what assessors are looking for and answer common questions about the application process.
- Build your business case. Gather census data, waiting list figures, school roll data and letters of support from local schools and health services to demonstrate community need.
- Obtain professional quotes. For any building work you need detailed quotes from qualified contractors that meet POBAL specification standards.
- Submit via the POBAL PIP portal. All applications go through PIP. Ensure your profile is fully current before the call opens.
- Grant agreement and drawdown. If successful you will enter a formal grant agreement with POBAL. Funding is drawn down in stages as verified works are completed.
If your application was unsuccessful in a previous call, request detailed written feedback from POBAL. They will tell you exactly why your application scored the way it did and that feedback is invaluable when preparing your next application.
How Building Blocks Links to Core Funding
A critical condition of Building Blocks grants in 2026 is the requirement to participate in Core Funding following completion. Core Funding provides annual revenue income based on hours of operation and staff qualifications. When you receive a Building Blocks capital grant, you are committing to run a Core Funded service in that expanded space. Make sure your financial projections include Core Funding income, as this significantly strengthens the financial viability case in your application.
Final Thoughts
The Building Blocks Scheme is genuinely life-changing for providers who navigate it successfully. A well-prepared, evidence-based application can unlock substantial capital funding that would otherwise be out of reach. The key is preparation, evidence and attention to detail. Start building your case now, before the next call opens.
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