New Daycare Providers to Receive ISK 1 Million in Start-Up Funding Skip to content
Reykjavík City Hall ráðhús
Photo: Golli. Reykjavík City Hall.

New Daycare Providers to Receive ISK 1 Million in Start-Up Funding

Reykjavík’s City Council recently passed a proposal stipulating that new daycare providers receive a startup grant of ISK 1 million ($7,300 / €6,700). The Chairman of the Council believes that the proposal will result in significant cost savings for parents, Vísir reports.

Same fee for daycare and kindergartens

On Thursday, June 15, the City Council of Reykjavík approved a proposal stipulating that daycare centres that commence operations in Reykjavík will receive a start-up grant of ISK 1 million ($7,300 / €6,700). ISK 250,000 ($1,800 / €1,700) will be paid upon the signing of a service contract, and ISK 750,000 ($5,500 / €5,000) a year later. In addition, the City of Reykjavík will organise and pay for an accident prevention course every two years for all daycare providers, Vísir reports.

Einar Þorsteinsson, the Chair of Reykjavík City Council and future mayor, highlighted a significant change in the recently agreed proposal; under the new arrangement, parents will pay the same fee to the daycare centre as they would for kindergarten once their child reaches 18 months of age. As noted by Vísir, the ruling coalition had previously promised that children as young as twelve months could enrol in kindergarten.

“The city’s rules stipulate that children should be admitted by the age of eighteen months,” Einar told Vísir. “Ensuring equal treatment for parents, regardless of whether they opt for daycare providers or the preschool system, is important. The new proposal aims to achieve this by implementing a uniform fee structure. It also aims to support families who have been on the kindergarten waiting list for an extended period by covering their expenses.”

Einar maintains that parents’ payments are being reduced by tens of thousands of króna per month. “Alongside this proposal, we’re also advertising for housing among private parties. We are specifically seeking ground floors, mobile units within open-air playgrounds (i.e. gæsluvellir), and unused retail spaces that could potentially serve as suitable locations for daycare facilities. These spaces may not be suitable for kindergartens, but they meet the requirements for daycare services.”

The new proposals are not unfair to those who already work as daycare providers, according to Einar: “These proposals are aimed at increasing the number of daycare providers, improving their working environment and conditions. Reykjavík’s School and Recreation department had a good meeting with both of the two daycare parents’ associations, and the proposals take into account their views.

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