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Denmark's Childcare Cost Regulations: What determines your financial burden?

Copenhagen's potential new mayor vowed to establish complimentary kindergartens and childcare centers. What legislatures dictate the cost parents pay for daily childcare?

"Governing Payments for Childcare in Denmark: What are the Regulations?"
"Governing Payments for Childcare in Denmark: What are the Regulations?"

Denmark's Childcare Cost Regulations: What determines your financial burden?

In a recent development, the Social Democratic candidate for Copenhagen mayor, Pernille Rosenkrantz-Theil, has proposed making early childcare (kindergartens and nurseries) free in Copenhagen. This proposal, if implemented, would significantly impact families with young children in the city.

The cost of nurseries and kindergartens varies across the country, but in Copenhagen, nurseries can cost up to 4,700 kroner per month, while kindergartens typically cost around 3,100 kroner. However, under the proposed plan, these costs would be fully covered for families with an annual household income of up to 208,101 kroner.

Families with incomes between 208,101 and 646,499 kroner per year would receive a partial subsidy, based on a calculation of the household's income month-by-month. Meanwhile, families with an annual income exceeding 646,499 kroner would not be eligible for the subsidy.

The 'sibling subsidy' (søskendetilskud) is also a part of the plan. This subsidy is given when more than one child attends either kindergarten or nursery, or the equivalent for school-aged children (SFO). The second child, or the child whose daycare costs the least, attends for 50 percent of the normal cost after the basic subsidy has been applied.

Local municipalities are required by law to cover at least 75 percent of the cost of attendance at both types of childcare (dagtilbud), including lunch and snacks. Parents can also qualify for additional subsidies beyond the 75 percent municipal subsidy (grundtilskud). Discounts are also available for families whose income falls below a certain threshold.

The 'financial free place subsidy' (økonomisk fripladstilskud) reduces or eliminates the cost of childcare depending on the household's total income. Families receive an additional allowance of 7,000 kroner for each child under 18 living at home beyond the first. Single parents also receive an additional allowance, which is 72,822 kroner in 2025.

However, the proposal has not been without criticism. Conservative councillor Jakob Næsager found the plan to fund free kindergartens by reducing municipal administration costs unrealistic. The Conservative party, along with other political parties, has labelled the proposal as unrealistic and pure election spin.

Each municipality publishes its own rates for places in public daycare once a year, when the rates are updated. For the latest rates, families are advised to check with their local municipality.

The height of parental fees for nursery and daycare is regulated primarily by municipal statutes on cost contributions for using daycare facilities and relief statutes for families, which are influenced by federal laws such as the Gute-Kita-Gesetz and the Starke-Familien-Gesetz. These laws may vary by state and municipality, with specific provisions like fee waivers for families receiving housing or child supplements.

As the debate continues, it remains to be seen whether the proposal for free kindergartens and nurseries in Copenhagen will become a reality. Parents and families across the city are closely watching the developments, hoping for a solution that will ease the financial burden of childcare costs.

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