Background information

In order to increase the purchasing power of families with children in the face of rising costs of living and high energy prices, the Finnish government adopted an amendment to the Act on Client Fees in Early Childhood Education and Care [1503/2016] (Laki varhaiskasvatuksen asiakasmaksuista) to reduce the fees for early childhood education and care.

Content of measure

The proposal is targeted to improve the financial situation of low- and middle-income families with children. The proposal will also contribute to increasing children’s participation in early childhood education and care.

The fees for early childhood education and care will be reduced by increasing the income limits for the fees by 33%. The amendment is scheduled to enter into force on 1 March 2023.

As a result of the amendment, municipalities are expected to see a reduction in their tax revenues of around €70 million, which will be compensated by allocating a larger share of corporate income tax from the state to the municipalities.

Use of measure

It is estimated that the proposal will result in free early childhood education for around 30,000 households.

Target groups

Workers	Businesses	Citizens
Does not apply to workers	Does not apply to businesses	Parents

Actors and funding

Actors	Funding
National government	National funds

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	Consulted	Consulted
Form	Direct consultation outside a formal body	Direct consultation outside a formal body

Social partners' role in the implementation, monitoring and assessment phase:

• No involvement
• Main level of involvement: Sectoral or branch level

Involvement

As the proposal was hurried to parliament, a consultation meeting was arranged with relevant stakeholders rather than conducting a full consultation round. Both peak level and sectoral social partners were invited.

Views and reactions

The Finnish Union of Practical Nurses SuPer voiced support for the government proposal. SuPer underlined the importance of compensating the lost revenue to municipal budgets in full. Nec_fiFinnish Association of Private Care Providers HALI [Hyvinvointiala] commented that increasing the participation rate in early childhood education is an important aspiration, as is increasing the purchasing power of families with children. HALI however saw that the government proposal did not sufficiently consider private early childhood education providers.

Sources

• 21 October 2022: Government proposal 228/2022 (Hallituksen eistys 228/2022) (www.eduskunta.fi)
• 20 October 2023: Early childhood education and care fees will be reduced (Varhaiskasvatuksen asiakasmaksuja alennetaan) (okm.fi)