Quality costs

Working paper 4Internationalcomparisons of highquality early childhoodeducation and care

Sandra GruescuSocial Market Foundation

Report series funded by

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Working paper 4: International comparisons of high quality earlychildhood education and care (ECEC)

Dr. Sandra GruescuSocial Market Foundation

1. Quality of and spending on ECEC services....................................................... 22. Funding arrangements – Demand side and supply side funding........................ 73. Country profiles .............................................................................................. 11

3.1 France.................................................................................................. 113.2 Denmark .............................................................................................. 153.3 New Zealand ........................................................................................ 173.4 Sweden ................................................................................................ 22

4. Conclusion ..................................................................................................... 27

Executive summary

This paper looks at the quality of early childhood education and care (ECEC) servicesprovided in France, Denmark, New Zealand and Sweden, as well as the fundingarrangements of these services. ECEC services for children not yet of school age can becategorised in centre-based daycare, family daycare and pre-school early education.The main factors that influence quality and thus costs of services are staff qualification,staff-child ratios and staff wages. Funding arrangements differ from country to countryand vary considerably across the Organisation for Economic Cooperation andDevelopment (OECD) countries. However, the main source of funding in the fourcountries reviewed here is supply-side funding. Parental contributions are often cappedfor services for the under threes, whereas services for the over threes are free of charge.Currently, as stated by the OECD, a public supply-side funding model, managed bypublic authorities, brings more uniform and higher quality of childhood populations thandemand-side funding models.

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1. Quality of, and spending on, ECEC services

This paper looks at the quality of early childhood education and care (ECEC) servicesprovided in four different countries as well as the funding arrangements of these ECECservices. France, Denmark, New Zealand and Sweden are countries known for theirwidely-used provision of quality childcare: for example, the enrolment rates among theover threes is around 95 per cent in Sweden and 100 per cent in France. However, therationale behind childcare and family policies differs from country to country. France’sfamily policy is based on a pro-natalist approach that looks to facilitate the need to havechildren and the need to work. In Sweden and Denmark one of the main principles thatdrive family policy is gender-equality in the workplace and sharing of familyresponsibilities. In New Zealand, family policy aims to enhance the wellbeing of childrenand support parents against the background of a wide range of family types, culturalbeliefs and practices. In all the four countries’ pre-school activities and childcare areconsidered to be socially important for the children’s development.

The analysis of each country gives an overview of the ECEC system, its qualityaccording to a list of defined criteria and its funding system.1

Broadly speaking, childcare and early years education services for children not yet ofschooling age can be categorised in the three following groups:

• centre-based daycare;• family daycare; and• pre-school early education

Centre-based daycare includes all childcare that is provided outside the child’s home ina licensed centre such as a nursery, daycare centre and crèche. In contrast, familydaycare is provided in a home setting, either in the child’s home or at the childminder’shome where a qualified and registered childminder looks after the children. Pre-schoolearly education includes centre- or school-based education to facilitate transition of thechildren towards primary school.

ECEC services differ from country to country with regards to the children’s age, inparticular, as the age of compulsory schooling differs. In Denmark and Sweden childrenstart compulsory schooling at the age of seven, in France at six, in New Zealand at fiveand in the UK even earlier – at four or five. The following table gives an overview of theECEC facilities in France, Denmark, New Zealand, Sweden and the UK. The differentprovider types are explained in more detail in the country sections below.

Table 1: Typology of childcare and early education services

Centre-basedcare

Family daycare Pre-school Compulsory school

Age 0 1 2 3 4 5 6 7

3

Dagpleje (FDC) and

Vuggesteur (crèche)

full-time (>32hrs)

Bornehaver (kindergarten) full-time

(>32hrs)

Denmark

Adlersintegrer (age-integrated facility) full-time

(>32hrs)

Borne-

haver

(>32hrs)

Compulsory

schooling

France

Crèche (centre-based

care) and Assistant

maternelles (FDC)

Ecole maternelle (pre-

school)Compulsory schooling

New

Zealand

Childcare centres and

some home-based

services (FDC)

Community-

based

Kindergarten,

play-centres

Compulsory schooling

SwedenFörskola (pre-school) full-time, 30 hours,

some Familiedeghem (FDC) particularly in rural areas

Forskole

-klass

(pre-

school)

Compulsory

schooling

UKN u r s e r i e s , c h i l d

minders and playgroups

Playgroups

and nurseriesCompulsory schooling

Source: OECD (2008), OECD Family Database, Table PF13.

Key quality factors affecting the costs of ECEC services

As set out in the Daycare Trust paper on high quality group childcare, quality hasdifferent facets of which staff-child ratios and staff qualification are two major aspectsand cost drivers. In addition premises, equipment, safety and an educational curriculumall play a part in determining the quality of childcare. The costs of labour – that is, wagesand benefits for staff members – amount to roughly about two-thirds of total costs. Anylegal requirements on staff-child ratios will affect these costs. In most countries the ratiofor children under the age of three is much higher (for example 1:3 or 1: 4) than for olderchildren (for example 1:12). Assuming the same wage levels (and same qualifications)for staff members, as a result of these ratios labour costs per child hour for childrenunder the age of three will be three to four times higher than for children over the age ofthree. Consequently, direct labour costs have a higher share of overall costs of ECECservices for younger children than for older children as other cost factors (equipment,food, supplies and so on) might not vary as much with the children’s age as the cost ofstaff. The costs of staff wages and benefits are likely to rise with the qualification of staff.The quality of ECEC services are in turn positively affected by the higher educationallevel of staff. To ensure a high quality level of services, qualification levels of staffmembers are crucial.

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The following two tables give an overview of key factors affecting the quality of childcareand early education services in France, Denmark, New Zealand, Sweden and the UK.

Table 2: Selected quality factors in childcare services

Main typeof staff

Initialtraining

requirementsAge

rangeMain fieldof work

Continuous training

Averagechild-staff

ratio

Denmark Paedagog

3–5 yearvocational or

tertiaryeducation

(depending onprior

experience)

0–5

Educational,social care,

specialneeds

institutions(incl.

daycare)

Funding de-centralisedtomunicipal-lities

3.3 (0–2years),7.2 (3–5years)

France

Puéricultrices

Éducateursde jeunesenfants

Nurse/mid-wife + 1-yearspecialisation

27-monthpost-Bac in

training centre

0–3

Crèches/assistant in

écolematernelle

–

5.0 (0–2years),8.0 (2–3years)

NewZealand

Earlychildhoodteacher

Diploma ofteaching

(ECE) – a 3year course –

or anequivalentapproved

qualification

0–5Teacher ledchildrens’centres

–

4–5 (0–2years),6–8 (2–3years),15(kindergarten)

SwedenBarnskötare

(childassistants)

2-year post 16secondary 1–7 All settings

Funding de-centralisedtomunicipal-lities

5.5

UK

Trainednurseryteacher,Nurserynurse

2-year post 16secondary 3–5, 0–5

Nurseries(orassistant)

Limited forday-careworkers

3 (0-2 years),4 (2 years),8 (3–5 years)

Source: OECD (2008), OECD Family Database, Table PF14.1.‘–’ means information was not available.

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Table 3: Qualification of pre-school teachers and main field of work

Source: Updated from OECD (2008), OECD Family Database, Table PF14.2.‘–’ means information was not available.

Main typeof staff

Initialtraining

requirements

Agerange

Main fieldof work

Averagechild-staff

ratio

Work inprimary

education?

Denmark Paedagog

3 to 5-yearvocational or

tertiaryeducation

(dependingon prior

experience)

0–10

Educational, socialcare,

specialneeds

institutions(incl.

daycare)

6.9

Yes, with 6year olds,and in teamswith 6 to 10year olds

France

Professeursd’écoles

Instituteurs

4-yearuniversitydegree A

plus 18-24months post-

graduateprofessional

training ;

Bac plus 2years oftraining

2–6 Écolematernelle 18.8

Yes, in allprimaryschoolclasses

NewZealand

Kindergartenteacher

Diploma ofteaching

(ECE) - a 3year course -

or anequivalentapproved

qualification

3–5 Kinder-garten 9.4 –

Sweden

Förskolläre(pre-schoolteachers)

Fritidspedagog (leisure

pedagogues)

Barnskötare2

(childassistants)

3.5yrs inuniversitycollege

2-year post16 secondary

1–7

OppenFörskola;Fritidshem

All settings

11.2

Yes

UK

Qualifiedteacher,Trainednurseryteacher,Nurserynurse

4-yruniversity –tertiary typeA 2-year post16 secondary

3–11

Nurseryclass,receptionclass,Nurseries

17.6 Yes

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Cost and funding of ECEC services

In all countries reviewed in this paper parents pay a fee to access childcare services forchildren under the age of three. Table 4 gives both gross childcare costs and netchildcare costs – that is, fees minus cash benefits, rebates and tax concessions. Thefigures relate to full-time care. The table shows that in Denmark and Sweden gross andnet cost are (almost) the same whereas in France, New Zealand and the UK gross andnet costs vary. There is also variation between cost for families on different incomes, inNew Zealand and the UK in particular. There is no variation in Denmark and only verylittle variation in Sweden.

Table 4: Gross and net childcare costs (2004)

Denmark France

New

ZealandSweden UK

% of average wage spent on fees for a two

year-old in early-years care and education

(gross costs)

8 25 20 5 25

% of family net income spent on childcare

for dual earner family with full-time earnings

167% of average wage (net costs)

8 11 28 6 33

% of family net income spent on childcare

for sole-parent family with full-time earnings

67% of average wage (net costs)

8 9 14 5 14

Source: OECD Family Database, PF 12: Childcare support.

The European Commission Network on Childcare stated in 1996 that it recommends aminimum investment level of at least one per cent of Gross Domestic Product (GDP) onECEC services for children up to the age of six.3 Denmark, Sweden and France havefulfilled this minimum target (see Table 5 below). Unexpectedly, public expenditure andaverage expenditure per child differ from country to country. However, comparisonbetween countries on the amount of public investment per child is limited as datacollection and the definition of ECEC varies between countries.

In Table 5, the measures of public spending on childcare and pre-primary supportinclude all public financial support (for example, cash benefits and tax deductions) forparents with children attending formal daycare and pre-school services.

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Table 5: Public expenditure on childcare (for children aged 0 to 3) and earlyeducation (for children aged 3 to 6) services as a percentage of GDP and per childin US$ (2005)

Denmark France

New

ZealandSweden UK

Childcare spending as a % of

GDP0.85 0.38 – 0.59 0.35

Pre-primary spending as a %

of GDP0.50 0.62 0.65 0.41 0.20

Total 1.35 1.00 – 1.00 0.55

Expenditure per child on pre-primary education (US$) (age3+)

3,800 4,600 6,000 3,700 4,100

Childcare support (US$) (0–3years) per child

8,000 2,900 (600) 6,300 3,800

Total 11,800 7,500 6,600 10,000 7,900Source: OECD Family Database, PF 10: Public Expenditure in childcare and early education.‘–’ means information was not available.

In the table, the figures for childcare expenditure in Sweden may be an underestimate,given data elsewhere, which shows that pre-primary spending in Sweden reached 1.05per cent of GDP in 20044 (though it is important to note that it is not straightforward tocompare expenditure as a percentage of GDP across time periods, given that GDP willalso change over time). The figure for childcare support in New Zealand is also likely tobe an underestimate due to a lack of data. Table 5 illustrates that childcare support forservices for children under the age of three is highest in Denmark and Sweden. The lowfigures for the UK reflects the predominance of private daycare, even against anincrease in pre-primary and childcare spending, which in England rose from £1.1bn in1996–97 to £3.8bn in 2004–05.5

2. Funding arrangements – demand-side and supply-sidefunding

Funding arrangements differ from country to country and vary considerably across theOrganisation for Economic Cooperation and Development (OECD) countries. Somecountries provide considerable amounts of public funding whereas in other countries thepublic funding is much less generous, leaving parents to fund early childhood educationand care (ECEC) arrangements themselves. In addition, employers can support theiremployees’ childcare arrangements financially. In general, there is agreement thatconsiderable public funding of ECEC is necessary to make these services not onlyavailable to as many families as possible but also to ensure a sustainable qualitystandard. Without these investments the quality of these services would be inadequate,with quality services only being available to families on a high income.

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In general, governments can choose between different funding options, as public fundingcan come in various ways – typically on the demand- and/or the supply-side.

Demand-side funding of early childhood education and care (ECEC) services can takethe following form(s):

• Direct funding through families to allow parents to make decisions on what kindof services they and their children need.

• Subsidies can be paid via tax credits or tax deductions.• Subsidies can be paid directly to providers rather than parents to support

parental choice and provide ECEC services with an income.• Subsidies can be provided by vouchers.• Subsidies can be designed in such a way as to allow parents to choose the care,

and then having the funds follow the children.

Supply-side funding of ECEC services can take the following form(s):• Subsidies are paid directly to providers of ECEC services.• Subsidies for costs which are linked to the number of places or to the number

of children.• Capital grants to providers to cover new building or refurbishment costs.• Subsidies are typically linked to a certain types of care (which could limit

parents’ choice).• Subsidised care will be available to parents at below market prices or even

for free.• Subsidised ECEC services can be provided directly by the public sector or by

subsidising private providers.

Public provision of ECEC services can take place in various ways such as deliveringservices through the private sector or through the public sector either by centralauthorities or local authorities. There is no ‘one size fits all’ solution for all countrieswhen it comes to financing ECEC services. But different funding arrangements result indifferent effects on the quality and use of ECEC services as well as on familyemployment decisions.6Table 6 below gives an overview of the availability of demand- and supply-side fundingand public expenditure as a percentage of Gross Domestic Product (GDP).7

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Table 6: Demand- and supply-side funding and public expenditure on ECECservices

Subsidies onthe supply side

Subsidies onthe demand side

Publicexpenditureon ISCED

Level 0 (3–6years) as % of

GDP (2004)

Public expenditureon ECEC services(0–6 years) as % of

GDP (2004)

Denmark Main form offunding

Free-choiceschemes

0.62%8

2% (an additional0.3% is spent on pre-school class forchildren aged 6–7years)9

France Main form offunding

For familydaycare;

For in-home careproviders;Tax relief

(see countrynotes below)

0.62% 1%

NewZealand

Direct grantfunding subsidies

for charteredECEC services;

Funding forlicense-exempt

services

Targeted feesubsidies for lowincome parentsof special needschildren, paid to

the provider

0.65% –

Sweden Main form offunding No 0.52% 1.7%

UK

Free earlyeducation placesfor 3 and 4 year

olds;Sure Start, Early

Years andChildcare Grant;

StandardSpending

Assessment

Childcareelement of

Working TaxCredit

0.46% 0.5%10

Updated from OECD (2006), Starting Strong II, p111.ISCED: International Standard Classification of Education; Level 0 equals pre-primary schooleducation for three- to six-year-olds. Figures for France are underestimated, figures for Swedenand Denmark are significantly underestimated. In France early education begins before the ageof three. For Denmark and Sweden, this figure is likely to identify expenditure for free educationalprovision only.

Several studies of ECEC services known for their high quality have estimated the costsper child if she or he is enrolled in a high quality early childhood service.11 Remarkably,

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across a variety of different studies, estimated costs for a child in a high quality serviceare fairly similar. For a full-day, year round service with integrated child care for childrenaged one to six the estimates (in US dollars) are:

• For Denmark: $13,650 (excluding parental contribution) or $19,500 (including aparental contribution of 30%).

• For Sweden: $12,097 (excluding parental contribution).• Other studies in the USA estimated US $12,970.

In general, governments of the countries analysed here take charge of the major costs ofearly education from the age of three onwards. For the under threes parents pay most ofthe cost in the UK, whereas in France parents pay about 25 per cent of costs. The Écolematernelle is free for all. In Sweden parents pay less than 15 per cent of costs: foryounger children, fees are capped on a gross income-related basis (no more than 3 percent of income for the first child, an additional 2 per cent for the second child, and anadditional 1 per cent for successive children). Pre-school classes (förskola) are free. InDenmark parents make a contribution to the cost of childcare which may not exceedone-third of the cost for the first child and 16.5 per cent for successive children. Pre-school classes (Bornehaver) are free. Services are free for children of parents on lowincome and for children with special needs. In New Zealand fees vary according tofamily income and the child’s age.

The impact of funding on quality of ECEC services

If ECEC services are seen as a public good – and there are sound arguments tosupport this view as they deliver positive impacts beyond the benefit of individual‘consumption’ of these services – it is the Government’s task to supply this good andcontrol its funding, regulation, supervision and quality to ensure quality ECEC for allyoung children.

The OECD states that ‘for the moment at least, a public supply side investment model,managed by public authorities, brings more uniform quality and superior coverage ofchildhood populations (1- to 6-year-olds) than parent subsidy models’.12 This can becaused by different reasons, such as a weaker regulation of private childcare providersand its problems in retaining highly qualified staff, the predominance of family daycareand/or the relative newness of demand-side funding models. Quality can also vary morewidely if management and quality control are moved from central government tomunicipalities or even parents. Direct or earmarked funding benefits quality and itscontrol. In contrast, funding spent on subsidies for parents means less governmentalcontrol over quality and a lower degree of universality in ECEC. It can also mean thatfunds are used inefficiently if parents have difficulties in deciding on the quality and levelof childcare they would like for their children, as well as difficulties in claiming what theyare eligible for. A report for the Daycare Trust and the Social Market Foundation byPricewaterhouseCoopers on financing a universal ECEC system for England by the year2020, finds that:

‘supply-side funding tends to be the dominant form of finance in countries with the bestdeveloped systems of early years education and care, such as Sweden, Denmark,France and New Zealand, whereas means-tested, demand-side funding is more typicalof countries with less-developed systems, such as the United Kingdom and the UnitedStates’.13

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3. Country profiles

3.1 France

Childcare systemIn France there is a wide range of early childhood education and care (ECEC) servicesavailable. After the end of parental leave parents of children aged from two months up tothree years (in some circumstances for older children) can choose from state-subsidisedindividual or group care.

Group care for children up to the age of threeA crèche or day nursery provides childcare for children from birth to the age of three.These providers are either run by the municipal councils, private or voluntaryorganisations or are set up by companies for their employees. Since August 2000providers have adapted their opening hours to help families to coordinate work andfamily life, providing opening hours from 7.30am to 7.00pm.There are several types of crèche available providing about 145,000 places (2005figures):

• Collective crèches (Crèches collective): a childcare service open all day and allyear long. Two-thirds are publicly funded and managed by local authorities, one-third are run privately.

• Parental crèches (Crèches parentales): childcare centres run by an associationof parents. Each parent usually works one half-day per week in the crèche.

• Family crèches (Crèches familiales): a compromise between a crèche and achildminder, this is an organised family daycare grouping 40 familycaretakers/childminders, supervised by a nursery nurse. Parents pay fees to thecrèche but care is provided in the childminder’s home. In 2005, they were 62,000places in crèches in childminders’ homes.

• Company crèches (Crèches d’enterprise): childcare organised by the employer.

Day nurseries cater for children up to the age of six, but are mainly used by childrenunder three. In 2005, there were an estimated 57,000 places available in public andprivate day nurseries. The staff consists of a nursery nurse, a nurse or a qualified carerand nursery assistants. A combined 317,000 places (2006 figures) are available in groupcare with the Government aiming to increase the number of available places.14

Individual care for children up to the age of 3 yearsA private, regulated option is to have the children cared for by family daycare (assistantsmaternelles, often known as nourrices (childminder)). This service is traditionallyprovided in the childminder’s home. There are usually up to three children aged betweentwo and a half and three years in a family daycare service at one time. Childminderscan be independent or attached to a crèche, and are employed directly by the parents.Another option is home care (garde à domicile), ie ‘home-based childminding’ where thechildren are looked after in their own home. The home carers are less regulated and arenot subject to the same regulations as family daycarers. Care at home by the child’s ownparents is also an officially recognised option and supported financially by the state.

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Group care for children aged three and olderChildren aged three to six (or in some communities, particularly in a disadvantagedsocial environment and/or where places are available, from the age of two) can attendpublic pre-school (école maternelle). Pre-school is not compulsory. However, it isattended by almost all children from the age of three upwards, as attending pre-school isseen as an important part in the child’s upbringing and development. Pre-schoolprovides education and care for 26 hours per week, with a maximum of six hours perday. In addition, children can attend out-of-school nurseries (Garderies périscolaires)and leisure centres (Centers de Loisirs Sans Hébergement (CLSH)) that cover the timeoutside pre-school hours.There is also the more expensive option of a private kindergarten (jardins de’enfants) forthree- to six-year-olds, which are open all day, all year round.

Attendance of servicesEnrolment in formal care for children under three is 42.9 per cent, the majority of thesechildren being over the age of two (35 per cent of all two-year-olds). Attendance in thepre-school is not obligatory, however enrolment rates are about 100 per cent for three-to four-year-olds as it is widely regarded as beneficial for the children’s development.Around 15 per cent of children between two and six attend private pre-schools; the other85 per cent attend the publicly funded pre-school. Once children are aged six it iscompulsory to attend school.15 The proportion of children attending private pre-schoolservices has been fairly stable at about 12.5 per cent.

Quality aspects of the ECEC servicesStaff qualification

• Crèches: The qualification requirements vary for the different childcare providers.In crèches and childcare services 75 per cent of staff are required to have anappropriate qualification: a minimum of 50 per cent of staff are required to have adiploma as a children’s nurse (puéricultrice – with a nurse or midwife qualificationplus 1.5 years of specialisation), a nurse (infirmière), a kindergarten teacher(educateur de jeunes enfants – with a 27 months post-Baccalaureate training) orsupport staff (auxiliaire de puériculture – with one-year study post-BEPC (brevetd’ecole)).

• Family daycare: The childminders (assistants maternelles) are required to beregistered with the local department for mother and childcare services, althougha significant number have not. This registration is renewed every three years.

• École maternelle: Staff in a pre-school are nursery teachers (institutrices) whowere recruited at Baccalaureate level and have two years of training or,increasingly, the diploma of a primary school teacher (professeur d’école). Thisdiploma is gained after 18-months’ teacher training, with a three-year universitydegree being the precondition to start this training. With this diploma, teachersare qualified to teach in early and primary education. Teachers are supported by‘specialised territorial agents’ (Agents territoriaux spécialisés d’ecole maternelle,ATSEM) who are recruited by the local authorities and have received training.16

Staff child ratio• Crèches: In a crèche for the under threes the staff-child ratio is 1:5 for children up

to the age of two (children who cannot yet walk) and 1:8 for children between twoand three years of age.

• Family daycare and family crèches: Maximum of three children per carer.

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• École maternelle: In pre-school there are no regulations for teacher-child ratiosbut the ratio averages 1:26 for children aged three to six.

Expenditure and fundingThe expenditure in 2006 for total childcare and pre-primary educational servicesspending by the Government totalled €10.2 billion or one per cent of GDP.17 Theaverage cost to parents for children below the age of is about 27 per cent of the costs;for children aged three and above public services are free. A recent report by the FrenchDepartment of Research, Studies, Assessments and Statistics noted that paid ‘home-based childminding’ (garde à domicile) is the most expensive form of childcare –averaging €635 per month in contrast to €280 per month for a crèche. Fees in crèchesand day nurseries vary in accordance with different criteria: status of the crèche,household income and number of children. On average the parental contributionrepresents about a quarter of the real price. Local authorities, Family Allowance Fundsand parental fees are the main source of financing of ECEC services.

Financial support for parentsFinancial support is available to help parents with childcare costs. A major family reformwas introduced for children born after 1 January 2004. However, for children born beforethis date the following allowances have been paid (and are to some extent still beingpaid), in case individual childcare is chosen:18

• To employ an approved family carer (Aide à la famille pour lemploi d’uneassistante maternelle agree (AFEAMA); assistance for the employment ofregistered childminders/family daycare allowance). Families with children undersix with their children attending a licensed family daycare provider are eligible forAFEAMA. It covers 100 per cent of the social contributions linked to recruitment.An additional allowance that varies with the children’s age and family incomecovers some of the wage costs. For a child under three the allowance is €113,74monthly (family income under €17,857), €89,92 for monthly for family incomesbetween €17,857 and €24,553, and €74,51 if the family income is higher than€24,553.19

• To employ someone who looks after the children in their own home (Allocationde garde d’enfant à domicile (AGED); home childcare allowance). It contributes50 per cent of the social contribution costs and there is a benefit from taxreductions up to €5,000 a year. The subsidy varies with the child’s age and familyincome. For a child under three and a family income less than €34,744, thesubsidy covers 75 per cent of social contribution expenses up to €1,584 pertrimester.

• Parents receive a parental education allowance if they decide to stop working(Allocation parentale d’éducation (APE); parental education allowance) or workpart-time when they have their second child. The allowance is given for amaximum of three years. The maximum rate is €525,12 (if the parent is no longeremployed) and can be received until the child’s third birthday. It cannot beaccumulated with APJE (see below).

• The young children allowance (Allocation pour jeune enfant (APJE)) isconsidered both an income subsidy and a childcare allowance. It is income-tested and may be received from the fifth month of pregnancy until the child’sthird birthday. Currently, 80 per cent of families with children under three receivethis benefit (€156,31 per month). 20

• Tax benefit: Families also benefit from tax deductions to offset childcare costs.Parents can be reimbursed up to 25 per cent of expenses up to €2,300 per year

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(resulting in a maximum tax reduction of €575 per year). When hiring an in-homecaregiver, parents can also receive a tax reduction equivalent to 50 per cent ofexpenses up to €6,900. Overall the maximum tax reduction is €3,450 per year.

For children born after 1 January 2004, the allowances APJE, AFEAMA, AGED andAPE have been replaced by a single benefit called PAJE (Prestation d’accueil dujeune enfant; infant accommodation benefit). The PAJE comprises four types of earlychildhood benefits: the income-tested birth grant;21 the income-tested basic youngchild allowance; supplemental allowances for parental childrearing and free choice ofworking time; and a supplemental allowance for free choice of childcare.

• The childbirth grant is income-tested and replaces the short-term APJEbenefit (see above). The grant (€868) is paid during the seventh month ofpregnancy and is paid for the first and all subsequent children. The annualincome ceilings for eligibility are €32,328 for a one-child family and €42,722for two working parents or a single parent.

• The basic young child allowance, which replaces the long-term APJE, followspayment of the birth grant. This allowance (€174 per month) is also income-tested and is paid from the child’s birth up to about the age of three. Theannual income ceilings for eligibility are the same as for the childbirth grant.

• There are two supplemental parental childrearing allowances – a supplementfor free choice of working time (CLCA) and optional supplement for freechoice of working time (COLCA) to replace the old APE (see above). Theirpurpose is to allow parents to stop working, or to work less, to ensure theycan look after their child. They are payable as of the first child and areconditioned on two years’ previous employment. The first allowance (CLCA)is payable as a separate benefit or, when certain income conditions are met,in addition to the basic young child allowance.22 The full monthly rate in thecase of non-payment of the basic allowance is €539 (otherwise it is €365). The second allowance is an optional supplement (COLCA) for families withat least three children whose last child was born after 1 July 2006, and with atleast one parent who has given up work to look after the child. The COLCAlevels, €770 and €597, are higher than the CLCA levels but COLCA is paidfor a shorter duration: one year versus six months for a first child plus up tothe third birthday for succeeding children.

• The childcare supplement replaces AFEAMA and AGED and is payable to acouple or single parent for either of those services. Like the childrearingallowances, it is income-tested and payable separately or on top of the basicyoung child allowance. The portion of the benefit that covers part of thechildminder’s wage varies according to household income and is reduced fora child aged three to six. The employer’s contributions for the employment ofa childminder continue to be covered in full; however, for the employment of ananny only half of the contributions are covered.

• The tax credit arrangements for childcare costs are not affected by thereform.

3.2 Denmark

Childcare system

15

In Denmark parents want their children to attend daycare from an early age as this isseen as beneficial to their upbringing, socialisation and cultural formation. It has becomemore and more the norm that children from one or two years of age are attending apublic childcare setting which is reflected in high enrolment figures. Children aged sixmonths to six years can be placed in centre-based care – provided by a crèche(Vuggestuer) for children up to age three, a kindergarten (Bornehaver) for children agedthree to six or an age-integrated centre (Aldersinteger) for children up to age six. Afurther daycare option for children up to age three is public family daycare (Dagpleje).According to the 1998 Social Services Act the purpose of these institutions is to provide“pedagogical, social and caring facilities”.23 About 70 per cent of these daycare facilitiesare provided by public community services. The remaining 30 per cent are run byindependent non-profit providers.

A family daycare service is not considered professional but is instead an informalservice. It is traditionally provided in a home setting. This could be at the childminder’shome or at the child’s own home. Children aged three to seven are placed inkindergarten. About 70 per cent of these facilities stated above are operated by public,community services.

Another type of childcare system is that children up to the age of six are placed in a full-time age-integrated facility (Aldersintegrer) and those aged six to seven are placed inkindergarten (borne-haver). This type of system is a public facility provided by the localauthorities. Children above seven attend compulsory schooling.

Children aged six months and over are entitled to a childcare place in a public setting.This entitlement is tied to each individual child and not to the parents’ (or mother’s)employment.24 The operating hours and annual duration for childcare services varydepending on the different type of service. The childcare system is predominantly one ofmixed, public or private services which is supervised or funded by the local authoritythrough the use of local taxes and central government grants.1a

Attendance of servicesWhereas children up to the age of one are mainly cared for by their parents, some areattending public daycare facilities: in 2004 eight per cent were in family daycare and fourper cent in a crèche or an age-integrated centre. For children over one the enrolmentrates are high. Around 80 per cent of children between the age of one and three areenrolled in daycare facilities (either family daycare, a crèche or an age-integratedcentre). Of children aged over three and under five 94 per cent were enrolled in 2004,almost all of them in an age-integrated centre or a kindergarten. Children aged five toschool age attend the free pre-school class in a primary school (Folkeskole) – theenrolment rate is 98 per cent (2004 figures).

Quality aspects of ECEC services

Staff qualificationAll childcare facilities (with the exception of family daycare) have a manager and adeputy manager, both of whom must have a degree as a pedagogue. Pedagogues arethe main workers across all centre-based facilities. The course to qualify as apedagogue takes three and half years at tertiary level in Centres of Further Education tocomplete and it is on par with teachers, social workers and nurses. A qualifiedpedagogue can go on to further education, including master and diploma programmes.

16

With pedagogues accounting for 60 per cent (2005 figures) of staff, Denmark has thehighest rate of professionals working in children’s centres of all the Nordic countries.Further staff consists of nursery and childcare assistants. The majority of assistants are‘unskilled’, but a small proportion has undertaken an adult education course or avocational training course for 18 months.

Staff-child ratio25

• Nurseries and daycare: One teacher per 3.2 children up to the age of two.• Kindergartens: One teacher per 5.9 children between the age of three and seven.• Integrated institutions: One teacher per five children.

Ensuring and regulating quality of early childhood services is the responsibility of localauthorities. There is no regulation on a national level concerning staff-child ratios andabout the involvement of qualified staff. However, the manager and deputy manager inchildcare centres must be qualified pedagogues.

Expenditure, funding and parents’ feesThe expenditure in 2005 for total childcare and pre-primary spending by governmenttotalled to 1.37 per cent of GDP. Pre-primary spending per child (age three to fiveinclusive) amounted to US $3,800, whereas childcare support per child under the age ofthree was US $8,100. Local authorities fund around 80 per cent of the costs of earlyyears services. Parents contribute on average 20 per cent by paying fees that are scaledaccording to their income. There is a maximum limit on individual parent fees of 25 percent of costs (since 2007) for guaranteed places. 26

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3.3 New Zealand

Childcare systemIn 2002, the New Zealand Government published its ten year strategy for early childhoodeducation and care. The Early Childhood Education (ECE) Strategic Plan outlined thesector and the Government’s vision for early childhood education in New Zealand from2002 through to 2012. It includes free provision of four hours per weekday for all three-and four-year-olds, which is part of a total of 30 hours of grant-supported education andcare services27 for all pre-school children. From 31 December 2007, teacher-led, centre-based education and care services are required to have 50 per cent of their staff holdingrelevant, recognised early childhood teaching qualifications.

In New Zealand the range of ECE services available is divided into two main types –teacher-led and parent-led types of childcare. In teacher-led services at least onemember of staff responsible for the education and care of children must be a qualifiedand registered ECE teacher. Teacher-led services include kindergartens, education andcare services, and home-based care providers. Kindergartens provide sessionaleducation and care for children aged three to school age. Education and care services28

provide sessional care, available all day or for flexible hours, for children from birth toschool age. Home-based education and care is provided in the home by a caregiver whoprovides learning experience for a small number of children. Each caregiver is a memberof a group of caregivers supported by a qualified teacher. A coordinator places childrenwith caregivers in approved homes for an agreed number of hours per week.

Kindergartens (also known as ‘kindy’) are teacher-led. They are typically open for threeafternoon sessions (afternoon kindy) for younger children, and five morning sessions forolder children (morning kindy). The emphasis is on learning through play, and teachingchildren the social skills they need for school. They are funded in exactly the same wayby the Government as Early Childhood Centres, with funding dependent upon how manyqualified teachers are on the staff. Kindergartens have traditionally provided part-time,sessional care for pre-schoolers, but increasingly more and more kindergartens nowprovide a longer service (up to six hours per day) for each child – although this is still notenough for working parents. All kindergarten teachers must be registered teachersholding a Diploma in Teaching (ECE) or a similar qualification, with a minimum of threeyears training. The staff qualification is one of the biggest differences betweenkindergartens and other ECE services.

In parent-led services parents, wh_nau29 or caregivers provide education and care.Playcentres and K_hanga Reo30 are currently the two types of parents-led services thatare licensed. Playgroups are a type of non-licensed, parent-led ECE service.

Playcentres and K_hanga Reo are collectively supported and managed by parents andcater for children from birth to the age of five. There is a strong focus on parents as firsteducators, and the child’s individual interests. A regional Playcentre Associationprovides support and guidance for parents running a playcentre. The Te K_hanga ReoNational Trust provides the umbrella organisation for all K_hanga Reos and overseesand ensures the quality of education and care – as well as the survival of the Maorilanguage.

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Playgroups are groups of parents and children up to the age of five. They meet for oneto five sessions each week and provide play as well as social and learning opportunities.Parents are responsible for running the playgroups. Playgroups are not licensed andmay be less formal than other ECE services. There are also playgroups in differentlanguage and cultures.

Attendance of ECE servicesChildren up to the age of three can be placed in childcare centres or in home-basedcare. Children aged three to five attend Kindergartens and play centres, while childrenabove five attend school. Enrolment rates for children under three are 37.9 per cent. Forchildren aged three to five it is 94.5 per cent. Although this percentage is high, it is notobligatory for children between these ages to enrol in childcare.

Quality aspects of ECE services

Staff qualificationAll Kindergarten teachers must be qualified teachers. They hold a Diploma in Teaching(Early Childhood Education) or a similar qualification, with a minimum of three yearstraining. Each home-based care network must have its own named coordinator(s), withall coordinators being ECE-qualified registered teachers. Education and care servicesare teacher-led. Early childhood teachers who hold a New Zealand Teachers Councilapproved ECE degree, graduate diploma, or Diploma of Teaching (Early ChildhoodEducation) may apply to the New Zealand Teachers Council to become a registeredteacher.

Staff-child ratioThe staff-child ratio is 1:4–5 for those children up to the age of two and 1:6–8 for thosechildren between two and three years of age. In Kindergartens, where all staff arequalified teachers, the ratio is 1:15.

Licensed ECE services are regularly reviewed by the Education Review Office to ensurethe quality of the services.

Expenditure and fundingThe expenditure in 2005 for total childcare and pre-primary spending by the Governmenttotalled to 0.62 per cent of GDP. Pre-primary spending per child amounted to US $6,000,whereas childcare support per child was US $500.

The new early childhood funding system was launched on 1 April 2005. To accessgovernment funding, ECE services must meet certain regulatory requirements. For mostservices this includes being licensed and chartered. Once chartered, most services areeligible for the Funding Subsidy. Some services will also be eligible for other types offunding. Licences set the minimum standards for premises, staffing, programmes,organisation and management of early childhood centres.31 There are some servicesthat are exempt from licensing requirements. This is in recognition of the fact that inmost licence-exempt services more than half the children attend with a parent, and thatlicence-exempt services do not operate for longer than three hours per day. Licence-exempt services do not receive the same level of funding as other services. Charters areapproved by the Ministry of Education. Once the charter has been signed, the servicecan apply for the Funding Subsidy from the Ministry. The charter must contain the

19

Desirable Objectives and Practices (DOPs) announced by the Ministry of Education.This ensures that services receiving government funding provide a certain level ofquality education and care.32

From July 2007 up to 20 hours per week and up to 6 hours per day of ECE services arefree for children aged three or four. Teacher-led services – including kindergartens,education and care services and home-based care networks– will have the option ofoffering free ECE (the programme is called ‘20 Hours ECE’). Some k_hanga reo will alsobe able to offer free ECE. In the 2009 Budget the Government announced that the 20Hours ECE will be extended to playcentres, all k_hanga reo and for five-year-oldchildren enrolled and attending early childhood education services from July 2010. Thesix hour daily limit for 20 Hours ECE funding will be lifted in 2011.

There are currently five main types of funding of ECE services available:1. The Funding Subsidy is the primary form of government funding for chartered

ECE services. The Funding Subsidy contributes to services’ operating costsby paying for part of each hour each child spends in ECE, to a maximum ofsix hours per child-place per day and 30 hours per child-place per week (ieseven days). The Funding Subsidy is paid three times a year – in March,July, and November. The Funding Subsidy rates are determined by servicetype because the costs faced by different service types vary. For thepurposes of the Funding Subsidy, services are grouped into three types:teacher-led, centre-based services; home-based care services; andparent/wh_nau-led services. Within each group there are separate rates forchildren aged under two, and children aged two and over. Funding for allservices is calculated using ‘Funded Child Hours’ (FCHs).33 Service providersare eligible to claim up to six FCHs per child-place per day, to a maximum of30 FCHs per child-place per week.

2. 20 Hours ECE34 is a higher rate of funding for teacher-led services thatprovide free early childhood education to three-year-olds and four-year-oldsfor up to a maximum of six hours per child per day and 20 hours per week. 20Hours ECE is paid three times a year, along with the funding subsidy.

3. Equity Funding provides additional educational resources to targetedcommunities to help improve access to quality early childhood education.Equity Funding is available to chartered, community-based ECE services thatmeet certain criteria. Equity Funding is paid three times a year, along with theFunding Subsidy.

4. The Annual Top-Up for Isolated Services (ATIS) is an income top-up for smallchartered ECE services in isolated areas. The ATIS is separate from theIsolation component of Equity Funding. Chartered private and community-based services with an Isolation Index of 1.65 or greater which receive lessthan $20,000 per annum in Funding Subsidy and Equity Funding are eligibleto receive the ATIS. The ATIS is calculated annually in arrears. Payment ismade each year with the July Funding Subsidy payment.

5. A Support Grant for Provisionally Registered Teachers is available to allchartered, teacher-led services that are supporting ECE-qualified,provisionally registered teachers in achieving full registration status. TheSupport Grant is paid three times a year, along with the Funding Subsidy.

In addition, the following four types of funding are available:

20

1. The Discretionary Grants Scheme is an annual allocation of planning and capitalgrants made to eligible early childhood services or groups. The aim of the DGS isto increase participation in quality early childhood education services byproviding funding to establish new licensed and chartered centres; increase thenumber of places available in existing early childhood centres; and supportgroups who are working to become licensed and chartered.

2. Incentive Grants are available to licensed teacher-led services that are notalready required to have all staff registered. Incentive Grants contribute towardsthe costs a service faces when supporting staff to study towards their first earlychildhood teaching qualification approved by the New Zealand Teachers Council.

3. Establishment Funding is available for community-based early childhoodeducation services about to be licensed or significantly increasing their licensedchild places. The funding assists community groups to recruit and employqualified staff and contributes towards the purchase of equipment and resourcesprior to becoming licensed. There are four funding rounds per year.

4. Funding for licence-exempt services. Limited funding is available for licence-exempt services to help contribute towards the basic costs in operating such aservice.

The link between costs and funding ratesThe funding rates for all early childhood services vary according to a range of costsusually faced by that service type. The funding rates are made up of basic and variablecomponents. The basic component reflects standard operating costs for all ECEservices (for example, administration costs, educational resources, professional serviceslike accountants, and utilities (electricity and telephone)). The variable componentprovides a subsidy for the main categories of ‘cost-drivers’ that differ between ECEservice types. For example, the variable component recognises that all-day servicesface higher costs than sessional services because they must meet different ratiorequirements, that services that are required to meet teacher registration targets willhave higher labour costs and that centre-based services face higher facility costs thanservices that do not have to maintain a centre. The ECE Funding Subsidy (and the FreeSubsidy) rates are intended to subsidise the cost of providing ECE and to share thecosts between government and parents.

20 Hours ECE are funded at a higher level because they are intended to meet the fullaverage cost of providing ECE for each service type.

Funding rates for teacher-led services depend on four variables:1. whether the service is all-day or sessional;2. the number of ‘Registered Teacher Hours’ as a proportion of regulated (ratio)

staff hours;3. the age of children attending the service;4. whether the service is offering Free ECE to eligible children.

Home-based care services are funded at either the ‘standard’ or ‘quality’ funding rate.Services cannot vary between standard and quality rates on a daily or weekly basis.Quality funding rates are available to home-based care networks that have either amaximum network size of 60 children and caregivers/educators with a certain minimumlevel of training or a maximum network size of 80 children and caregivers/educators withadditional training.

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Parent/wh_nau-led services are funded at either ‘standard’ or ‘quality’ funding rates.1Services cannot vary between standard and quality rates on a daily or weekly basis.Playcentres and k_hanga reo that meet certain additional requirements (for example,that adults present must have certain qualifications) are eligible for quality funding rates.

Subsidies for parentsIn addition to the 20 Hours ECE (see above) some parents will be eligible for a childcaresubsidy for children under five. The amount parents can claim depend on the number ofchildren in their family, the amount of income they receive, their work or study hours andhow many hours their children spend in the ECE services. The subsidy is paid directly tothe ECE service provider so it reduces the amount parents have to pay. For three- andfour-year-olds, parents can only claim childcare subsidy for hours of attendance that arenot covered by the 20 hours free ECE. For this they must be entitled for childcaresubsidy for more than 20 hours per week.35

Cost-wise there is a noticeable difference between a kindergarten and other ECEservices. Kindergarten is, for the most part, government funded and costs parentsroughly NZ $2 to $5 per morning or afternoon session. The ratio of teachers to childrendiffers greatly. Kindergartens cater for children from age two through to five, when theybegin attending primary school. In 2009, the Government has raised the earliest startingdate for kindergarten children to 2.5 years. Kindergartens qualify for the 20 Hours ECEfunding, but there will typically be fund-raising throughout the year. Parents are alsooften asked to help volunteer with tasks such as end-of-term cleaning sessions, washingand snack-making.

Daycare centres accepting pre-school aged children also have to follow the NewZealand early childhood curriculum, and are open longer, offering more flexible hours,than kindergartens and playcentres. There is typically no parental involvement in thecentre, and fees can be quite high – as a rule of thumb, around $200 a week for a full-time place, although this varies by area. Some daycare centres participate in the 20Hours ECE scheme and receive government funding for three- and four-year-olds up to20 hours a week, then charge a fee for the rest of the week if applicable.

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3.4 Sweden

Childcare systemA reform of childcare in Sweden was carried out between 2001 and 2003. This reformentailed a regulation of childcare fees, an obligation for municipalities to offer pre-schoolactivity to certain groups of children and ‘universal’ pre-school for all four- and five-yearolds. These measures were intended to increase the availability of pre-school activityand childcare for school-age children.36

In Sweden all children aged one and above have a right to pre-school education in anECEC provider. The hours per week children under the age of four are entitled todepend on their parents’ employment status. For children aged four and above universalpre-school (introduced in 2003) applies which is free of charge. The majority of pre-school provision is provided by the municipalities/local authorities in daycare centres.

Children aged one to six can attend full-time pre-school (förskola) which is usually openfrom 6.30am to 6.30pm Monday to Friday. Pre-schools, like childcare for schoolchildren,have twin tasks. They are to help provide an environment that stimulates children'sdevelopment and learning, and enable parents to combine parenthood with work orstudies. Pre-schools are open all year round. Daily opening hours are adapted to suit thework or studies of parents and the needs of the children.

Municipalities are allowed to charge a “reasonable” fee for pre-school places.37 However,children are entitled to 525 free hours a year starting in the autumn term of the year theyturn four, until they start school. All municipalities apply a system of maximum fees. Thismeans that there is a cap on how high fees can be for a family. The maximum feesystem is voluntary for municipalities, and municipalities which apply it are entitled to agovernment grant to compensate them for loss of income and to secure quality.

Children aged six to seven are offered a place in a pre-school class (förskoleklass) tofacilitate transition towards primary school for at least three hours every day (equivalentat least 525 hours a year). Attendance is voluntary and it is free of charge. Once childrenreach seven they attend school which is compulsory.

Family daycare homes (familjedaghem), also refered to as ‘pedagogical care’, offer full-time care for pre-school aged children as well as children of school age. In pedagogicalcare, a family childminder receives children into his or her own home. A number ofchildminders can work together in a group. Family daycare homes are run by registeredchildminders in their own homes looking after children aged one to twelve (althoughmost are between one and five). The same regulatory control and evaluation applied tothe pre-schools is also applied to family daycare, but it is not compulsory for thechildminders to use the pre-school curriculum. Family daycare homes are most commonin rural areas.

Open pre-schools (öppen förskola) are intended for those children who are not involvedin any other organised pre-school activity. The task of open pre-school is to work closelywith its adult visitors to provide the children with good educational group activities. It alsoprovides the adults with an opportunity to meet and spend time with other adults. Visitorsare not registered, they decide themselves how often they want to participate. Parents(and childminders) can attend with their children whenever they wish. Children are given

23

the opportunity to participate in group activities, often under the supervision of a qualifiedpre-school teacher.

Childcare for schoolchildren is the collective name for three types of activity available tochildren up to the age of 12 who attend school (pre-school class or compulsory school):leisure-time centres, family daycare homes (see above) and open leisure-time activities.

Leisure-time centres (fritidshem) offer childcare for children aged six to nine before andafter school and on holidays. A leisure-time centre is a pedagogical group activity forschool children up to the age of 12. Its task is to function as a complement to the schooland provide children with meaningful leisure and support in their development. Theleisure-time centre is also organised so that it enables parents to work or study.

An open leisure-time centre is for children aged 10–12 who do not need the care andguidance provided by leisure-time centres or family daycare homes. It can also functionas a supplement for schoolchildren who go to family daycare homes. The children arenot registered. The families decide when and how often the children are to participate.

Private daycare is also available, provided by parental and personnel co-operatives,churches, corporations and others.

Attendance of ECEC servicesVery few children under the age of 18 months are attending ECEC services; almost all ofthem are cared for by one of their parents at home. However, all children are entitled toa place from their first birthday. Forty-five per cent of all children aged one to two and 86per cent of those aged two to three are attending pre-school, as well as 91 per cent ofthe three- to four-year-olds and 96 per cent of five- to six-year olds. Of children aged sixto seven, around 94 per cent attend pre-school class with another four per cent in thisage group already in compulsory schooling. 38

Family daycare is attended by about seven per cent of all children between the age ofone and six plus another one per cent of children of school age. This form of childcare ismore important in rural areas. Seventy-six per cent of children aged six to nine attendleisure time facilities as well as 11 per cent of children aged 10 to 12. 39

Of compulsory school pupils, 74,100 (7.4 per cent) attended an independent school inthe autumn of 2005, an increase of 4,600 pupils compared with the previous year.

Quality of ECEC services

Staff qualificationEach centre-based childcare provider is required to have a director with a teaching orpedagogue qualification gained at university. At pre-schools the majority (84.2 per cent)of staff are teachers with higher education teaching qualifications.40 Remaining staff aretrained child assistants with a three-year upper secondary training certificate. In familydaycare, staff are employed by the local authority, which determines the requiredtraining levels. Many family daycarers are former teachers or child assistants. Seventyper cent have either a child assistant certificate or have received 50 to 100 hours ofmandatory training from their local authority employer, although they are, in principle, notrequired to have a qualification.

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Staff-child ratioThere is no national regulation determining the number of children per adult or thenumber of children in one group. The Swedish National Agency of Education has drawnup general guidelines. In practice, in ECEC centres and family daycare the staff-childratio is on average 1:5.5 children. The maximum group size in pre-school centres is 17children per group, with a ratio of 5.4 children per trained adult. In pre-school classes theratio is on average 1:14.9 (school year 2006/07).

Municipalities have the responsibility to monitor the quality of ECEC services. There isno regulation on a national level concerning staff-child ratios. These are set by the localauthorities and can vary considerably between them.

Expenditure, funding and parents’ feesOver the last couple of years the Government has taken a number of measures toenhance the quality of pre-school education and care for all children. The maximum feereform (introduced in January 2002), universal pre-schooling for children aged four andfive (since January 2003) and the right to pre-school for children of the unemployed andthose on parental leave are part of this quality enhancement. The maximum fee wasintroduced from 1 January 2002 and means that a ceiling is set on the amount of the feethat a municipality can charge parents (see Table 7). Households with an income of overSEK 42,000 per month pay at most the maximum fee, other households pay at most acertain percentage of their gross income. Since 2003 all municipalities in Sweden applya system with a maximum fee.

Table 7: The maximum monthly fee in pre-school activity and childcare for school

Maximum monthly fee in pre-school activity (children aged 1–5) / month

Maximum fee Percent of gross Income

Child one (youngest) SEK 1,260 3

Child two SEK 840 2

Child three SEK 420 1

Child four No fee –

Maximum monthly fee in child care for schoolchildren (aged 6–12) / monthChild one (youngest) SEK 840 2

Child two SEK 420 1

Child three SEK 420 1

Child four No Fee –

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Table 8: Public spending on early years services in 2006

Early YearsServiceProvider

Totalexpenses/national

level in SEK (£)

In % ofGDP

Expenses perenrolled child

in SEK (£)

Level of financingvia parents’ fees

(%)Pre-school 40,947,650,000

(3,046,505,160)

1.45 105,000

(7,812)

8

Familydaycare home

2,696,664,000

(200,631,801)

0.0955 84,300

(6,271)

10

Leisure-timecentre

10,535,533,000

(783,843,655 )

0.373 32,400

(2,410)

16

Total 54,602,684,000

(4,062,439,690)

1.9333 72,500

(5,394)

10

Source: The Swedish National Agency for Education’s Report 30141

Pre-school as well as childcare for children at school age are financed by state grants,municipal grants and fees paid by parents. The state grant is provided to themunicipalities and takes into account any additional resources needed for children withspecial needs. Pre-school fees and their maximum level used to vary betweenmunicipalities but nowadays all have adopted the maximum fee. This means the parentsare not charged fees above a certain threshold. For this the municipalities receive aspecial state grant to compensate for the loss in revenues. The maximum fee is basedon a fixed percentage of parents’ income. It is three per cent (maximum SEK 1260) forone child in pre-school activities and decreases by one per cent for each additional child.With four children in pre-school and/or school-age childcare parents pay no fee at all.42

Pre-primary spending per child amounted to US $3,700, whereas childcare support perchild was US $6,300 (see Table 5 above).43The expenditure in 2005 for total childcareand pre-primary spending by the Government totalled to 0.9 per cent of GDP accordingto OECD data.44 However, the OECD notes that this is likely to be a significantunderestimation. Table 8 gives the figures for public spending on early years servicesaccording to Sweden’s Official Statistics: it amounts to 1.9 per cent of GDP in 2006.

The pre-school fees are related to parents’ income, but also vary between municipalities.The fee is capped at a maximum level. The maximum fee (maxtaxan) takes into accountthe number of children in one family that are attending pre-school activities or school-age childcare to regulate a family’s maximum childcare costs. Pre-school from the age offour as well as pre-school class are free of charge for at least 525 hours a year,corresponding to three hours every day during school term. Children of parents who areunemployed or on parental leave have the right to 15 hours pre-school activities perweek.

Changes in quality due to the reform measuresThe average staff-child ratio has changed marginally during the period of pre-schoolreforms. The number of children per family childminder has decreased slightly and thenumber of children per employee has increased at leisure-time centres. The average

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number of children per employee is 5.2 in pre-schools, 5.1 in family daycare and 18.6 inleisure-time centres.45

The proportion of staff with teacher training from higher education in pre-school hasvaried marginally (between 52 and 54 per cent) between 2000 and 2005. In the case ofleisure-time centres, the proportion of staff with teacher training from higher educationdecreased from 68 per cent in 1998 to 57 per cent in 2002, but has subsequentlyincreased slightly to 59 per cent in 2005.46 As regards the educational level of staff, therehave been large variations between municipalities both before and after the reform. Thegreatest variations are in leisure-time centres. Despite pre-schools in some cases havingbeen expanded considerably as a result of the reform, the average group sizes and staffdensity have changed relatively little during the years in question. In the case of groupsizes, there are however some indications that they are tending to become so high(especially during certain parts of the day) that it is becoming difficult to carry out theactivities as intended.

Central government grant for quality assurance measuresAs from 2002, a special central government grant was introduced for quality assurancemeasures in childcare for municipalities that apply the maximum charge. Around SEK500 million per year has been distributed to the municipalities. The follow-ups show thatthe grant has been used in the first place for staff reinforcements at pre-school. Theproportion of the grant which has been used for staff reinforcement in pre-schools (grantyears 2002–06) has varied between 75 and 79 per cent of the total grant amount. Inaddition, around 10 per cent has been used for measures to increase competence atpre-school, and the remaining ten per cent has been used for childcare for schoolchildren.

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4. Conclusion

In the four countries reviewed here quality of early childhood education and care (ECEC)services is high. Supply-side funding is the main form of funding of these high qualityservices. Currently, as stated by the Organisation for Economic Cooperation andDevelopment, a public supply-side funding model, managed by public authorities, bringsmore uniform and higher quality of childhood populations (one- to six-year-olds) thandemand-side funding models. However, in France and New Zealand a range of demand-side subsidies are available to parents. For services for children under the age of three,parents are also obliged to contribute, with the amount as a percentage of income beinglowest in Denmark and Sweden. Consequently, public spending in these two countries ishigher than in other countries where parents have to contribute more.

If ECEC services are seen as a ‘public good’, it is the Government’s task to supply thisgood and control its funding, regulation, supervision and quality to ensure qualitychildcare for all young children. In addition, funding should be (and is) tied to thefulfilment of requirements with regards to staff qualifications and staff-child ratios. Inparticular, subsidies in New Zealand are tied to quality factors. In Sweden a grant forquality assurances has been mainly used for staff reinforcement, which should improvequality. High quality childcare and early years education is costly. Several studies haveshown that governments should expect to spend on average around US$ 13,000(£7,900) per child to provide for a full-day, year round service with integrated childcarefor children aged one to six.

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References 1 All figures are taken from: OECD (2006) Starting strong II: Early childhood education and care,OECD: Paris; OECD Family Database at http://www.oecd.org/els/social/family/database; andEurybase – The Information Database on Education Systems in Europe athttp://www.eurydice.org, unless otherwise stated2 Child assistants are fully part of the pedagogical teams and compose nearly 50% of staff in pre-schools3 European Commission Network on Childcare and Other Measures to Reconcile theEmployment and Family Responsibilities of Men and Women (1996) Quality Targets in Servicesfor Young Children, p.14, Toronto; online athttp://www.childcarecanada.org/pubs/other/quality/Qualitypaperthree.pdf4 EACEA/Eurydice Network (2009) Early childhood education and care in Europe: Tackling socialand cultural inequalities, p.70, Education, Audiovisual & Culture Executive Agency5 http://www.hm-treasury.gov.uk/d/pbr04childcare_480upd050105.pdf6 See Cleveland, G and Krashinsky, M (2003) Financing ECEC Services in OECD Countries,Chapter 3, OECD: Toronto7ibid, Table 28 Expenditure on ISCED Level 0 is 1.1% following http://www.childcarepolicy.net – InternationalECEC policies9 A similar figure, 2.37% (1.1% for ISCED Level 0) is given in Cleveland and Krashinsky (2003)op cit10 The figure 0.4% for ISCED Level 0 is given in Cleveland and Krashinsky (2003) op cit (note 6).11 OECD (2006) op cit (note 1), p.107, Table 5.112 OECD (2006) op cit (note 1), p.11413 PricewaterhouseCoopers (2004) Universal early education and care in 2020: costs, benefitsand funding options, report for the Daycare Trust and the Social Market Foundation14 Ministère des affaires étrangères (2007) Early childhood Policy in France15 Figures for 2006, OECD Family database, op cit (note 1), Enrolment in day-care and pre-schools, Table PF11.116 Eg Certificat d’Aptitude Professionelle (CAP), a Vocational Training Certificate specialising inearly childhood or a secondary level qualification. This has been required since 1992.17 Ministère des affaires étrangères (2007) op cit (note 14)18 OECD (2006) op cit (note 1), p.10619 Figures for 2009. If the family has more than one child the income levels go up, seehttp://www.caf.fr/wps/portal/particuliers/catalogue/metropole/afeama20 The ‘short’ APJE is paid from the fifth month of pregnancy until the child reaches the age of 3months. The ‘long’ APJE is paid between the ages of 4 months and 3 years21 This grant is also paid in case of adoption22 This allowance is prorated in the case of parent’s employment 23 Jensen, JJ (2005) ‘Pedagogy as an integrative concept: the Danish model of early educationand care’, in Reale, D (ed.), Learning with other Countries: International models of earlyeducation and care, pp.26–29, Daycare Trust24 Jensen, JJ (2005) ibid, p.2825 Figures for 2006: see Eurybase (2008) The Education System in Denmark, chapter 3.1626 See Jensen, JJ (2005) ibid, p.2827 Licensed services other than k_hanga reo, playcentres, home-based care services andsessional kindergartens will be required to have at least 50% of teachers with a recognised earlychildhood qualification28 Education and care services are early childhood services that are teacher-led and centre-based and required to meet the teacher registration targets. Individual education and care

29

services may be known by many names, including crèches, private kindergartens, aoga, punangareo and childcare centres29 Whanau may consist of the parents of children attending, elders and the community involved inproviding the service30 K_hanga Reo (meaning ‘language nest’) is a type of ECE centre where all education andinstruction is delivered in the Maori language31 Instead of being licensed, chartered home-based care services must meet minimum standardsset out in the Education (Home-Based Care) Order 1992 (and 1998 amendment)32 Te K_hanga Reo National Trust has signed Te Korowai, the charter agreement between theTrust and the Crown, on behalf of all k_hanga reo. K_hanga whan_u receive their individualcharter from the Trust. To receive a charter, k_hanga whan_u must complete documentationspecified by the Trust, using Te Korowai as guidance33 FCH is an occupied child-place that is funded for one hour. FCHs are the hours for which aservice may claim funding and are based on the hours a child is enrolled to attend the service orthe hours a casually enrolled child attends the service34 Until 31 December 2008 this was known as ‘Free ECE’35 See http://www.workingforfamilies.govt.nz/childcare-assistance36 Skolverket (2007) Five years with the maximum fee, English summary of Report 294, SwedishNational Agency for Education: Stockholm37 As well as for family daycare homes and leisure-time centres38 Data for 2007/2008, from Eurybase, op cit39 Skolverket (2006) Descriptive data on pre-school activities, school-age childcare, schools andadult education in Sweden 2006, Report 283, Swedish National Agency for Education: Stockholm40 ibid, Table 1541Table 1 in Skolverket (2006) Costs for child care and schools during the preceding calendaryear, Report 301, Swedish National Agency for Education: Stockholm. Exchange rate of 1 :0.0744 (SEK : GBP) – based on 2006 exchange rates from OECD Statistics. Swedish GDP for2006 as 2899 bn SEK, current prices, based on figures from UN Statistics, seehttp://unstats.un.org/unsd/snaama/resCountry.asp42 See Skolverket (2007) op cit43 See OECD Family Database at http://www.oecd.org/dataoecd/45/27/37864512.pdf44 ibid45 ibid, Table 346 Skolverket (2007) op cit, pp.23–34

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