The quality of early years’ childcare is a longstanding concern of the Family and Childcare Trust. This is because only high quality early education improves the opportunities in life for the most disadvantaged children. Read our two research reports:

1. Quality costs
Working paper 4
International
comparisons of high
quality early childhood
education and care
Sandra Gruescu
Social Market Foundation
Report series funded by

2. 1
Working paper 4: International comparisons of high quality early
childhood education and care (ECEC)
Dr. Sandra Gruescu
Social Market Foundation
1. Quality of and spending on ECEC services.......................................................2
2. Funding arrangements – Demand side and supply side funding........................7
3. Country profiles.............................................................................................. 11
3.1 France.................................................................................................. 11
3.2 Denmark .............................................................................................. 15
3.3 New Zealand ........................................................................................ 17
3.4 Sweden................................................................................................ 22
4. Conclusion..................................................................................................... 27
Executive summary
This paper looks at the quality of early childhood education and care (ECEC) services
provided in France, Denmark, New Zealand and Sweden, as well as the funding
arrangements of these services. ECEC services for children not yet of school age can be
categorised 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 country
and vary considerably across the Organisation for Economic Cooperation and
Development (OECD) countries. However, the main source of funding in the four
countries reviewed here is supply-side funding. Parental contributions are often capped
for 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 by
public authorities, brings more uniform and higher quality of childhood populations than
demand-side funding models.

3. 2
1. Quality of, and spending on, ECEC services
This paper looks at the quality of early childhood education and care (ECEC) services
provided in four different countries as well as the funding arrangements of these ECEC
services. France, Denmark, New Zealand and Sweden are countries known for their
widely-used provision of quality childcare: for example, the enrolment rates among the
over threes is around 95 per cent in Sweden and 100 per cent in France. However, the
rationale behind childcare and family policies differs from country to country. France’s
family policy is based on a pro-natalist approach that looks to facilitate the need to have
children and the need to work. In Sweden and Denmark one of the main principles that
drive family policy is gender-equality in the workplace and sharing of family
responsibilities. In New Zealand, family policy aims to enhance the wellbeing of children
and support parents against the background of a wide range of family types, cultural
beliefs and practices. In all the four countries’ pre-school activities and childcare are
considered to be socially important for the children’s development.
The analysis of each country gives an overview of the ECEC system, its quality
according to a list of defined criteria and its funding system.1
Broadly speaking, childcare and early years education services for children not yet of
schooling 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 in
a licensed centre such as a nursery, daycare centre and crèche. In contrast, family
daycare is provided in a home setting, either in the child’s home or at the childminder’s
home where a qualified and registered childminder looks after the children. Pre-school
early education includes centre- or school-based education to facilitate transition of the
children towards primary school.
ECEC services differ from country to country with regards to the children’s age, in
particular, as the age of compulsory schooling differs. In Denmark and Sweden children
start compulsory schooling at the age of seven, in France at six, in New Zealand at five
and in the UK even earlier – at four or five. The following table gives an overview of the
ECEC facilities in France, Denmark, New Zealand, Sweden and the UK. The different
provider types are explained in more detail in the country sections below.
Table 1: Typology of childcare and early education services
Centre-based
care
Family daycare Pre-school Compulsory school
Age 0 1 2 3 4 5 6 7

4. 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
Sweden
Förskola (pre-school) full-time, 30 hours,
some Familiedeghem (FDC) particularly in rural areas
Forskole
-klass
(pre-
school)
Compulsory
schooling
UK
N u r s e r i e s , c h i l d
minders and playgroups
Playgroups
and nurseries
Compulsory 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 has
different facets of which staff-child ratios and staff qualification are two major aspects
and cost drivers. In addition premises, equipment, safety and an educational curriculum
all play a part in determining the quality of childcare. The costs of labour – that is, wages
and benefits for staff members – amount to roughly about two-thirds of total costs. Any
legal requirements on staff-child ratios will affect these costs. In most countries the ratio
for children under the age of three is much higher (for example 1:3 or 1: 4) than for older
children (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 children
under the age of three will be three to four times higher than for children over the age of
three. Consequently, direct labour costs have a higher share of overall costs of ECEC
services 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 of
staff. 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 educational
level of staff. To ensure a high quality level of services, qualification levels of staff
members are crucial.

5. 4
The following two tables give an overview of key factors affecting the quality of childcare
and early education services in France, Denmark, New Zealand, Sweden and the UK.
Table 2: Selected quality factors in childcare services
Main type
of staff
Initial
training
requirements
Age
range
Main field
of work
Continuou
s training
Average
child-staff
ratio
Denmark Paedagog
3–5 year
vocational or
tertiary
education
(depending on
prior
experience)
0–5
Educational,
social care,
special
needs
institutions
(incl.
daycare)
Funding de-
centralised
to
municipal-
lities
3.3 (0–2
years),
7.2 (3–5
years)
France
Puéricultrice
s
Éducateurs
de jeunes
enfants
Nurse/mid-
wife + 1-year
specialisation
27-month
post-Bac in
training centre
0–3
Crèches/
assistant in
école
maternelle
–
5.0 (0–2
years),
8.0 (2–3
years)
New
Zealand
Early
childhood
teacher
Diploma of
teaching
(ECE) – a 3
year course –
or an
equivalent
approved
qualification
0–5
Teacher led
childrens’
centres
–
4–5 (0–2
years),
6–8 (2–3
years),
15
(kindergarten)
Sweden
Barnskötare
(child
assistants)
2-year post 16
secondary
1–7 All settings
Funding de-
centralised
to
municipal-
lities
5.5
UK
Trained
nursery
teacher,
Nursery
nurse
2-year post 16
secondary
3–5, 0–5
Nurseries
(or
assistant)
Limited for
day-care
workers
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.

6. 5
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 type
of staff
Initial
training
requirement
s
Age
range
Main field
of work
Average
child-staff
ratio
Work in
primary
education?
Denmark Paedagog
3 to 5-year
vocational or
tertiary
education
(depending
on prior
experience)
0–10
Educational
, social
care,
special
needs
institutions
(incl.
daycare)
6.9
Yes, with 6
year olds,
and in teams
with 6 to 10
year olds
France
Professeurs
d’écoles
Instituteurs
4-year
university
degree A
plus 18-24
months post-
graduate
professional
training ;
Bac plus 2
years of
training
2–6 École
maternelle 18.8
Yes, in all
primary
school
classes
New
Zealand
Kindergarten
teacher
Diploma of
teaching
(ECE) - a 3
year course -
or an
equivalent
approved
qualification
3–5
Kinder-
garten
9.4 –
Sweden
Förskolläre
(pre-school
teachers)
Fritidspedago
g (leisure
pedagogues)
Barnskötare
2
(child
assistants)
3.5yrs in
university
college
2-year post
16 secondary
1–7
Oppen
Förskola;
Fritidshem
All settings
11.2
Yes
UK
Qualified
teacher,
Trained
nursery
teacher,
Nursery
nurse
4-yr
university –
tertiary type
A 2-year post
16 secondary
3–11
Nursery
class,
reception
class,
Nurseries
17.6 Yes

7. 6
Cost and funding of ECEC services
In all countries reviewed in this paper parents pay a fee to access childcare services for
children under the age of three. Table 4 gives both gross childcare costs and net
childcare costs – that is, fees minus cash benefits, rebates and tax concessions. The
figures relate to full-time care. The table shows that in Denmark and Sweden gross and
net cost are (almost) the same whereas in France, New Zealand and the UK gross and
net costs vary. There is also variation between cost for families on different incomes, in
New Zealand and the UK in particular. There is no variation in Denmark and only very
little variation in Sweden.
Table 4: Gross and net childcare costs (2004)
Denmark France
New
Zealand
Sweden 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 a
minimum investment level of at least one per cent of Gross Domestic Product (GDP) on
ECEC services for children up to the age of six.3
Denmark, Sweden and France have
fulfilled this minimum target (see Table 5 below). Unexpectedly, public expenditure and
average expenditure per child differ from country to country. However, comparison
between countries on the amount of public investment per child is limited as data
collection and the definition of ECEC varies between countries.
In Table 5, the measures of public spending on childcare and pre-primary support
include all public financial support (for example, cash benefits and tax deductions) for
parents with children attending formal daycare and pre-school services.

8. 7
Table 5: Public expenditure on childcare (for children aged 0 to 3) and early
education (for children aged 3 to 6) services as a percentage of GDP and per child
in US$ (2005)
Denmark France
New
Zealand
Sweden UK
Childcare spending as a % of
GDP
0.85 0.38 – 0.59 0.35
Pre-primary spending as a %
of GDP
0.50 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$) (age
3+)
3,800 4,600 6,000 3,700 4,100
Childcare support (US$) (0–3
years) per child
8,000 2,900 (600) 6,300 3,800
Total 11,800 7,500 6,600 10,000 7,900
Source: 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 1.05
per cent of GDP in 20044
(though it is important to note that it is not straightforward to
compare expenditure as a percentage of GDP across time periods, given that GDP will
also change over time). The figure for childcare support in New Zealand is also likely to
be an underestimate due to a lack of data. Table 5 illustrates that childcare support for
services for children under the age of three is highest in Denmark and Sweden. The low
figures for the UK reflects the predominance of private daycare, even against an
increase in pre-primary and childcare spending, which in England rose from £1.1bn in
1996–97 to £3.8bn in 2004–05.5
2. Funding arrangements – demand-side and supply-side
funding
Funding arrangements differ from country to country and vary considerably across the
Organisation for Economic Cooperation and Development (OECD) countries. Some
countries provide considerable amounts of public funding whereas in other countries the
public funding is much less generous, leaving parents to fund early childhood education
and care (ECEC) arrangements themselves. In addition, employers can support their
employees’ childcare arrangements financially. In general, there is agreement that
considerable public funding of ECEC is necessary to make these services not only
available to as many families as possible but also to ensure a sustainable quality
standard. Without these investments the quality of these services would be inadequate,
with quality services only being available to families on a high income.

9. 8
In general, governments can choose between different funding options, as public funding
can 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 take
the following form(s):
• Direct funding through families to allow parents to make decisions on what kind
of 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 delivering
services through the private sector or through the public sector either by central
authorities or local authorities. There is no ‘one size fits all’ solution for all countries
when it comes to financing ECEC services. But different funding arrangements result in
different effects on the quality and use of ECEC services as well as on family
employment decisions.6
Table 6 below gives an overview of the availability of demand- and supply-side funding
and public expenditure as a percentage of Gross Domestic Product (GDP).7

10. 9
Table 6: Demand- and supply-side funding and public expenditure on ECEC
services
Subsidies on
the supply side
Subsidies on
the demand side
Public
expenditure
on ISCED
Level 0 (3–6
years) as % of
GDP (2004)
Public expenditure
on ECEC services
(0–6 years) as % of
GDP (2004)
Denmark
Main form of
funding
Free-choice
schemes
0.62%
8
2% (an additional
0.3% is spent on pre-
school class for
children aged 6–7
years)
9
France
Main form of
funding
For family
daycare;
For in-home care
providers;
Tax relief
(see country
notes below)
0.62% 1%
New
Zealand
Direct grant
funding subsidies
for chartered
ECEC services;
Funding for
license-exempt
services
Targeted fee
subsidies for low
income parents
of special needs
children, paid to
the provider
0.65% –
Sweden
Main form of
funding
No 0.52% 1.7%
UK
Free early
education places
for 3 and 4 year
olds;
Sure Start, Early
Years and
Childcare Grant;
Standard
Spending
Assessment
Childcare
element of
Working Tax
Credit
0.46% 0.5%
10
Updated from OECD (2006), Starting Strong II, p111.
ISCED: International Standard Classification of Education; Level 0 equals pre-primary school
education for three- to six-year-olds. Figures for France are underestimated, figures for Sweden
and Denmark are significantly underestimated. In France early education begins before the age
of three. For Denmark and Sweden, this figure is likely to identify expenditure for free educational
provision only.
Several studies of ECEC services known for their high quality have estimated the costs
per child if she or he is enrolled in a high quality early childhood service.11
Remarkably,

11. 10
across a variety of different studies, estimated costs for a child in a high quality service
are fairly similar. For a full-day, year round service with integrated child care for children
aged one to six the estimates (in US dollars) are:
• For Denmark: $13,650 (excluding parental contribution) or $19,500 (including a
parental 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 of
early education from the age of three onwards. For the under threes parents pay most of
the cost in the UK, whereas in France parents pay about 25 per cent of costs. The École
maternelle is free for all. In Sweden parents pay less than 15 per cent of costs: for
younger children, fees are capped on a gross income-related basis (no more than 3 per
cent of income for the first child, an additional 2 per cent for the second child, and an
additional 1 per cent for successive children). Pre-school classes (förskola) are free. In
Denmark parents make a contribution to the cost of childcare which may not exceed
one-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 low
income and for children with special needs. In New Zealand fees vary according to
family 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 to
support 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 and
control its funding, regulation, supervision and quality to ensure quality ECEC for all
young 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 of
childhood populations (1- to 6-year-olds) than parent subsidy models’.12
This can be
caused by different reasons, such as a weaker regulation of private childcare providers
and its problems in retaining highly qualified staff, the predominance of family daycare
and/or the relative newness of demand-side funding models. Quality can also vary more
widely if management and quality control are moved from central government to
municipalities or even parents. Direct or earmarked funding benefits quality and its
control. In contrast, funding spent on subsidies for parents means less governmental
control over quality and a lower degree of universality in ECEC. It can also mean that
funds are used inefficiently if parents have difficulties in deciding on the quality and level
of childcare they would like for their children, as well as difficulties in claiming what they
are eligible for. A report for the Daycare Trust and the Social Market Foundation by
PricewaterhouseCoopers on financing a universal ECEC system for England by the year
2020, finds that:
‘supply-side funding tends to be the dominant form of finance in countries with the best
developed systems of early years education and care, such as Sweden, Denmark,
France and New Zealand, whereas means-tested, demand-side funding is more typical
of countries with less-developed systems, such as the United Kingdom and the United
States’.13

12. 11
3. Country profiles
3.1 France
Childcare system
In France there is a wide range of early childhood education and care (ECEC) services
available. After the end of parental leave parents of children aged from two months up to
three years (in some circumstances for older children) can choose from state-subsidised
individual or group care.
Group care for children up to the age of three
A 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 voluntary
organisations or are set up by companies for their employees. Since August 2000
providers have adapted their opening hours to help families to coordinate work and
family life, providing opening hours from 7.30am to 7.00pm.
There are several types of crèche available providing about 145,000 places (2005
figures):
• Collective crèches (Crèches collective): a childcare service open all day and all
year 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 association
of parents. Each parent usually works one half-day per week in the crèche.
• Family crèches (Crèches familiales): a compromise between a crèche and a
childminder, this is an organised family daycare grouping 40 family
caretakers/childminders, supervised by a nursery nurse. Parents pay fees to the
crèche but care is provided in the childminder’s home. In 2005, they were 62,000
places 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 children
under three. In 2005, there were an estimated 57,000 places available in public and
private day nurseries. The staff consists of a nursery nurse, a nurse or a qualified carer
and nursery assistants. A combined 317,000 places (2006 figures) are available in group
care with the Government aiming to increase the number of available places.14
Individual care for children up to the age of 3 years
A private, regulated option is to have the children cared for by family daycare (assistants
maternelles, often known as nourrices (childminder)). This service is traditionally
provided in the childminder’s home. There are usually up to three children aged between
two and a half and three years in a family daycare service at one time. Childminders
can 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 the
children are looked after in their own home. The home carers are less regulated and are
not subject to the same regulations as family daycarers. Care at home by the child’s own
parents is also an officially recognised option and supported financially by the state.

13. 12
Group care for children aged three and older
Children aged three to six (or in some communities, particularly in a disadvantaged
social environment and/or where places are available, from the age of two) can attend
public pre-school (école maternelle). Pre-school is not compulsory. However, it is
attended by almost all children from the age of three upwards, as attending pre-school is
seen as an important part in the child’s upbringing and development. Pre-school
provides education and care for 26 hours per week, with a maximum of six hours per
day. In addition, children can attend out-of-school nurseries (Garderies périscolaires)
and leisure centres (Centers de Loisirs Sans Hébergement (CLSH)) that cover the time
outside pre-school hours.
There is also the more expensive option of a private kindergarten (jardins de’enfants) for
three- to six-year-olds, which are open all day, all year round.
Attendance of services
Enrolment in formal care for children under three is 42.9 per cent, the majority of these
children being over the age of two (35 per cent of all two-year-olds). Attendance in the
pre-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 other
85 per cent attend the publicly funded pre-school. Once children are aged six it is
compulsory to attend school.15
The proportion of children attending private pre-school
services has been fairly stable at about 12.5 per cent.
Quality aspects of the ECEC services
Staff 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 an
appropriate qualification: a minimum of 50 per cent of staff are required to have a
diploma as a children’s nurse (puéricultrice – with a nurse or midwife qualification
plus 1.5 years of specialisation), a nurse (infirmière), a kindergarten teacher
(educateur de jeunes enfants – with a 27 months post-Baccalaureate training) or
support staff (auxiliaire de puériculture – with one-year study post-BEPC (brevet
d’ecole)).
• Family daycare: The childminders (assistants maternelles) are required to be
registered with the local department for mother and childcare services, although
a significant number have not. This registration is renewed every three years.
• École maternelle: Staff in a pre-school are nursery teachers (institutrices) who
were recruited at Baccalaureate level and have two years of training or,
increasingly, the diploma of a primary school teacher (professeur d’école). This
diploma is gained after 18-months’ teacher training, with a three-year university
degree being the precondition to start this training. With this diploma, teachers
are 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 two
and three years of age.
• Family daycare and family crèches: Maximum of three children per carer.

14. 13
• École maternelle: In pre-school there are no regulations for teacher-child ratios
but the ratio averages 1:26 for children aged three to six.
Expenditure and funding
The expenditure in 2006 for total childcare and pre-primary educational services
spending by the Government totalled €10.2 billion or one per cent of GDP.17
The
average 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 French
Department 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 crèches
and day nurseries vary in accordance with different criteria: status of the crèche,
household income and number of children. On average the parental contribution
represents about a quarter of the real price. Local authorities, Family Allowance Funds
and parental fees are the main source of financing of ECEC services.
Financial support for parents
Financial support is available to help parents with childcare costs. A major family reform
was introduced for children born after 1 January 2004. However, for children born before
this date the following allowances have been paid (and are to some extent still being
paid), in case individual childcare is chosen:18
• To employ an approved family carer (Aide à la famille pour lemploi d’une
assistante maternelle agree (AFEAMA); assistance for the employment of
registered childminders/family daycare allowance). Families with children under
six with their children attending a licensed family daycare provider are eligible for
AFEAMA. It covers 100 per cent of the social contributions linked to recruitment.
An additional allowance that varies with the children’s age and family income
covers some of the wage costs. For a child under three the allowance is €113,74
monthly (family income under €17,857), €89,92 for monthly for family incomes
between €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 (Allocation
de garde d’enfant à domicile (AGED); home childcare allowance). It contributes
50 per cent of the social contribution costs and there is a benefit from tax
reductions up to €5,000 a year. The subsidy varies with the child’s age and family
income. For a child under three and a family income less than €34,744, the
subsidy covers 75 per cent of social contribution expenses up to €1,584 per
trimester.
• Parents receive a parental education allowance if they decide to stop working
(Allocation parentale d’éducation (APE); parental education allowance) or work
part-time when they have their second child. The allowance is given for a
maximum of three years. The maximum rate is €525,12 (if the parent is no longer
employed) and can be received until the child’s third birthday. It cannot be
accumulated with APJE (see below).
• The young children allowance (Allocation pour jeune enfant (APJE)) is
considered 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’s
third birthday. Currently, 80 per cent of families with children under three receive
this 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

15. 14
(resulting in a maximum tax reduction of €575 per year). When hiring an in-home
caregiver, parents can also receive a tax reduction equivalent to 50 per cent of
expenses 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 and
APE have been replaced by a single benefit called PAJE (Prestation d’accueil du
jeune enfant; infant accommodation benefit). The PAJE comprises four types of early
childhood benefits: the income-tested birth grant;21
the income-tested basic young
child allowance; supplemental allowances for parental childrearing and free choice of
working time; and a supplemental allowance for free choice of childcare.
• The childbirth grant is income-tested and replaces the short-term APJE
benefit (see above). The grant (€868) is paid during the seventh month of
pregnancy and is paid for the first and all subsequent children. The annual
income ceilings for eligibility are €32,328 for a one-child family and €42,722
for two working parents or a single parent.
• The basic young child allowance, which replaces the long-term APJE, follows
payment 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. The
annual income ceilings for eligibility are the same as for the childbirth grant.
• There are two supplemental parental childrearing allowances – a supplement
for free choice of working time (CLCA) and optional supplement for free
choice of working time (COLCA) to replace the old APE (see above). Their
purpose is to allow parents to stop working, or to work less, to ensure they
can look after their child. They are payable as of the first child and are
conditioned 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 the
case of non-payment of the basic allowance is €539 (otherwise it is €365).
The second allowance is an optional supplement (COLCA) for families with
at least three children whose last child was born after 1 July 2006, and with at
least one parent who has given up work to look after the child. The COLCA
levels, €770 and €597, are higher than the CLCA levels but COLCA is paid
for a shorter duration: one year versus six months for a first child plus up to
the third birthday for succeeding children.
• The childcare supplement replaces AFEAMA and AGED and is payable to a
couple or single parent for either of those services. Like the childrearing
allowances, it is income-tested and payable separately or on top of the basic
young child allowance. The portion of the benefit that covers part of the
childminder’s wage varies according to household income and is reduced for
a child aged three to six. The employer’s contributions for the employment of
a childminder continue to be covered in full; however, for the employment of a
nanny only half of the contributions are covered.
• The tax credit arrangements for childcare costs are not affected by the
reform.
3.2 Denmark
Childcare system

16. 15
In Denmark parents want their children to attend daycare from an early age as this is
seen as beneficial to their upbringing, socialisation and cultural formation. It has become
more and more the norm that children from one or two years of age are attending a
public childcare setting which is reflected in high enrolment figures. Children aged six
months 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 aged
three to six or an age-integrated centre (Aldersinteger) for children up to age six. A
further 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 facilities
are provided by public community services. The remaining 30 per cent are run by
independent non-profit providers.
A family daycare service is not considered professional but is instead an informal
service. It is traditionally provided in a home setting. This could be at the childminder’s
home or at the child’s own home. Children aged three to seven are placed in
kindergarten. 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 in
kindergarten (borne-haver). This type of system is a public facility provided by the local
authorities. 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 vary
depending on the different type of service. The childcare system is predominantly one of
mixed, public or private services which is supervised or funded by the local authority
through the use of local taxes and central government grants.1a
Attendance of services
Whereas children up to the age of one are mainly cared for by their parents, some are
attending public daycare facilities: in 2004 eight per cent were in family daycare and four
per cent in a crèche or an age-integrated centre. For children over one the enrolment
rates are high. Around 80 per cent of children between the age of one and three are
enrolled in daycare facilities (either family daycare, a crèche or an age-integrated
centre). 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 to
school age attend the free pre-school class in a primary school (Folkeskole) – the
enrolment rate is 98 per cent (2004 figures).
Quality aspects of ECEC services
Staff qualification
All childcare facilities (with the exception of family daycare) have a manager and a
deputy manager, both of whom must have a degree as a pedagogue. Pedagogues are
the main workers across all centre-based facilities. The course to qualify as a
pedagogue takes three and half years at tertiary level in Centres of Further Education to
complete and it is on par with teachers, social workers and nurses. A qualified
pedagogue can go on to further education, including master and diploma programmes.

17. 16
With pedagogues accounting for 60 per cent (2005 figures) of staff, Denmark has the
highest 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 a
vocational 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 local
authorities. There is no regulation on a national level concerning staff-child ratios and
about the involvement of qualified staff. However, the manager and deputy manager in
childcare centres must be qualified pedagogues.
Expenditure, funding and parents’ fees
The expenditure in 2005 for total childcare and pre-primary spending by government
totalled to 1.37 per cent of GDP. Pre-primary spending per child (age three to five
inclusive) amounted to US $3,800, whereas childcare support per child under the age of
three was US $8,100. Local authorities fund around 80 per cent of the costs of early
years services. Parents contribute on average 20 per cent by paying fees that are scaled
according to their income. There is a maximum limit on individual parent fees of 25 per
cent of costs (since 2007) for guaranteed places. 26

18. 17
3.3 New Zealand
Childcare system
In 2002, the New Zealand Government published its ten year strategy for early childhood
education and care. The Early Childhood Education (ECE) Strategic Plan outlined the
sector and the Government’s vision for early childhood education in New Zealand from
2002 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 and
care 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 holding
relevant, 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 one
member of staff responsible for the education and care of children must be a qualified
and registered ECE teacher. Teacher-led services include kindergartens, education and
care services, and home-based care providers. Kindergartens provide sessional
education 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 to
school age. Home-based education and care is provided in the home by a caregiver who
provides learning experience for a small number of children. Each caregiver is a member
of a group of caregivers supported by a qualified teacher. A coordinator places children
with 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 three
afternoon sessions (afternoon kindy) for younger children, and five morning sessions for
older children (morning kindy). The emphasis is on learning through play, and teaching
children the social skills they need for school. They are funded in exactly the same way
by the Government as Early Childhood Centres, with funding dependent upon how many
qualified teachers are on the staff. Kindergartens have traditionally provided part-time,
sessional care for pre-schoolers, but increasingly more and more kindergartens now
provide a longer service (up to six hours per day) for each child – although this is still not
enough for working parents. All kindergarten teachers must be registered teachers
holding a Diploma in Teaching (ECE) or a similar qualification, with a minimum of three
years training. The staff qualification is one of the biggest differences between
kindergartens 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 that
are licensed. Playgroups are a type of non-licensed, parent-led ECE service.
Playcentres and K_hanga Reo are collectively supported and managed by parents and
cater for children from birth to the age of five. There is a strong focus on parents as first
educators, and the child’s individual interests. A regional Playcentre Association
provides support and guidance for parents running a playcentre. The Te K_hanga Reo
National Trust provides the umbrella organisation for all K_hanga Reos and oversees
and ensures the quality of education and care – as well as the survival of the Maori
language.

19. 18
Playgroups are groups of parents and children up to the age of five. They meet for one
to 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 and
may be less formal than other ECE services. There are also playgroups in different
language and cultures.
Attendance of ECE services
Children up to the age of three can be placed in childcare centres or in home-based
care. Children aged three to five attend Kindergartens and play centres, while children
above five attend school. Enrolment rates for children under three are 37.9 per cent. For
children aged three to five it is 94.5 per cent. Although this percentage is high, it is not
obligatory for children between these ages to enrol in childcare.
Quality aspects of ECE services
Staff qualification
All Kindergarten teachers must be qualified teachers. They hold a Diploma in Teaching
(Early Childhood Education) or a similar qualification, with a minimum of three years
training. Each home-based care network must have its own named coordinator(s), with
all coordinators being ECE-qualified registered teachers. Education and care services
are teacher-led. Early childhood teachers who hold a New Zealand Teachers Council
approved ECE degree, graduate diploma, or Diploma of Teaching (Early Childhood
Education) may apply to the New Zealand Teachers Council to become a registered
teacher.
Staff-child ratio
The staff-child ratio is 1:4–5 for those children up to the age of two and 1:6–8 for those
children between two and three years of age. In Kindergartens, where all staff are
qualified teachers, the ratio is 1:15.
Licensed ECE services are regularly reviewed by the Education Review Office to ensure
the quality of the services.
Expenditure and funding
The expenditure in 2005 for total childcare and pre-primary spending by the Government
totalled 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 access
government funding, ECE services must meet certain regulatory requirements. For most
services this includes being licensed and chartered. Once chartered, most services are
eligible for the Funding Subsidy. Some services will also be eligible for other types of
funding. Licences set the minimum standards for premises, staffing, programmes,
organisation and management of early childhood centres.31
There are some services
that are exempt from licensing requirements. This is in recognition of the fact that in
most licence-exempt services more than half the children attend with a parent, and that
licence-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 are
approved by the Ministry of Education. Once the charter has been signed, the service
can apply for the Funding Subsidy from the Ministry. The charter must contain the

20. 19
Desirable Objectives and Practices (DOPs) announced by the Ministry of Education.
This ensures that services receiving government funding provide a certain level of
quality education and care.32
From July 2007 up to 20 hours per week and up to 6 hours per day of ECE services are
free for children aged three or four. Teacher-led services – including kindergartens,
education and care services and home-based care networks– will have the option of
offering free ECE (the programme is called ‘20 Hours ECE’). Some k_hanga reo will also
be able to offer free ECE. In the 2009 Budget the Government announced that the 20
Hours ECE will be extended to playcentres, all k_hanga reo and for five-year-old
children enrolled and attending early childhood education services from July 2010. The
six 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 costs
by paying for part of each hour each child spends in ECE, to a maximum of
six hours per child-place per day and 30 hours per child-place per week (ie
seven days). The Funding Subsidy is paid three times a year – in March,
July, and November. The Funding Subsidy rates are determined by service
type because the costs faced by different service types vary. For the
purposes of the Funding Subsidy, services are grouped into three types:
teacher-led, centre-based services; home-based care services; and
parent/wh_nau-led services. Within each group there are separate rates for
children aged under two, and children aged two and over. Funding for all
services is calculated using ‘Funded Child Hours’ (FCHs).33
Service providers
are eligible to claim up to six FCHs per child-place per day, to a maximum of
30 FCHs per child-place per week.
2. 20 Hours ECE34
is a higher rate of funding for teacher-led services that
provide free early childhood education to three-year-olds and four-year-olds
for up to a maximum of six hours per child per day and 20 hours per week. 20
Hours ECE is paid three times a year, along with the funding subsidy.
3. Equity Funding provides additional educational resources to targeted
communities to help improve access to quality early childhood education.
Equity Funding is available to chartered, community-based ECE services that
meet certain criteria. Equity Funding is paid three times a year, along with the
Funding Subsidy.
4. The Annual Top-Up for Isolated Services (ATIS) is an income top-up for small
chartered ECE services in isolated areas. The ATIS is separate from the
Isolation component of Equity Funding. Chartered private and community-
based services with an Isolation Index of 1.65 or greater which receive less
than $20,000 per annum in Funding Subsidy and Equity Funding are eligible
to receive the ATIS. The ATIS is calculated annually in arrears. Payment is
made each year with the July Funding Subsidy payment.
5. A Support Grant for Provisionally Registered Teachers is available to all
chartered, teacher-led services that are supporting ECE-qualified,
provisionally registered teachers in achieving full registration status. The
Support Grant is paid three times a year, along with the Funding Subsidy.
In addition, the following four types of funding are available:

21. 20
1. The Discretionary Grants Scheme is an annual allocation of planning and capital
grants made to eligible early childhood services or groups. The aim of the DGS is
to increase participation in quality early childhood education services by
providing funding to establish new licensed and chartered centres; increase the
number of places available in existing early childhood centres; and support
groups who are working to become licensed and chartered.
2. Incentive Grants are available to licensed teacher-led services that are not
already required to have all staff registered. Incentive Grants contribute towards
the costs a service faces when supporting staff to study towards their first early
childhood teaching qualification approved by the New Zealand Teachers Council.
3. Establishment Funding is available for community-based early childhood
education services about to be licensed or significantly increasing their licensed
child places. The funding assists community groups to recruit and employ
qualified staff and contributes towards the purchase of equipment and resources
prior 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 a
service.
The link between costs and funding rates
The funding rates for all early childhood services vary according to a range of costs
usually faced by that service type. The funding rates are made up of basic and variable
components. The basic component reflects standard operating costs for all ECE
services (for example, administration costs, educational resources, professional services
like accountants, and utilities (electricity and telephone)). The variable component
provides a subsidy for the main categories of ‘cost-drivers’ that differ between ECE
service types. For example, the variable component recognises that all-day services
face higher costs than sessional services because they must meet different ratio
requirements, that services that are required to meet teacher registration targets will
have higher labour costs and that centre-based services face higher facility costs than
services that do not have to maintain a centre. The ECE Funding Subsidy (and the Free
Subsidy) rates are intended to subsidise the cost of providing ECE and to share the
costs between government and parents.
20 Hours ECE are funded at a higher level because they are intended to meet the full
average 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 a
maximum network size of 60 children and caregivers/educators with a certain minimum
level of training or a maximum network size of 80 children and caregivers/educators with
additional training.

22. 21
Parent/wh_nau-led services are funded at either ‘standard’ or ‘quality’ funding rates.1
Services 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 parents
In addition to the 20 Hours ECE (see above) some parents will be eligible for a childcare
subsidy for children under five. The amount parents can claim depend on the number of
children in their family, the amount of income they receive, their work or study hours and
how many hours their children spend in the ECE services. The subsidy is paid directly to
the ECE service provider so it reduces the amount parents have to pay. For three- and
four-year-olds, parents can only claim childcare subsidy for hours of attendance that are
not covered by the 20 hours free ECE. For this they must be entitled for childcare
subsidy for more than 20 hours per week.35
Cost-wise there is a noticeable difference between a kindergarten and other ECE
services. Kindergarten is, for the most part, government funded and costs parents
roughly NZ $2 to $5 per morning or afternoon session. The ratio of teachers to children
differs greatly. Kindergartens cater for children from age two through to five, when they
begin attending primary school. In 2009, the Government has raised the earliest starting
date for kindergarten children to 2.5 years. Kindergartens qualify for the 20 Hours ECE
funding, but there will typically be fund-raising throughout the year. Parents are also
often asked to help volunteer with tasks such as end-of-term cleaning sessions, washing
and snack-making.
Daycare centres accepting pre-school aged children also have to follow the New
Zealand early childhood curriculum, and are open longer, offering more flexible hours,
than kindergartens and playcentres. There is typically no parental involvement in the
centre, 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 20
Hours ECE scheme and receive government funding for three- and four-year-olds up to
20 hours a week, then charge a fee for the rest of the week if applicable.

23. 22
3.4 Sweden
Childcare system
A reform of childcare in Sweden was carried out between 2001 and 2003. This reform
entailed a regulation of childcare fees, an obligation for municipalities to offer pre-school
activity to certain groups of children and ‘universal’ pre-school for all four- and five-year
olds. These measures were intended to increase the availability of pre-school activity
and childcare for school-age children.36
In Sweden all children aged one and above have a right to pre-school education in an
ECEC provider. The hours per week children under the age of four are entitled to
depend on their parents’ employment status. For children aged four and above universal
pre-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 open
from 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's
development and learning, and enable parents to combine parenthood with work or
studies. Pre-schools are open all year round. Daily opening hours are adapted to suit the
work 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 they
turn four, until they start school. All municipalities apply a system of maximum fees. This
means that there is a cap on how high fees can be for a family. The maximum fee
system is voluntary for municipalities, and municipalities which apply it are entitled to a
government 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) to
facilitate transition towards primary school for at least three hours every day (equivalent
at least 525 hours a year). Attendance is voluntary and it is free of charge. Once children
reach 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 pedagogical
care, a family childminder receives children into his or her own home. A number of
childminders can work together in a group. Family daycare homes are run by registered
childminders in their own homes looking after children aged one to twelve (although
most are between one and five). The same regulatory control and evaluation applied to
the pre-schools is also applied to family daycare, but it is not compulsory for the
childminders to use the pre-school curriculum. Family daycare homes are most common
in rural areas.
Open pre-schools (öppen förskola) are intended for those children who are not involved
in any other organised pre-school activity. The task of open pre-school is to work closely
with its adult visitors to provide the children with good educational group activities. It also
provides the adults with an opportunity to meet and spend time with other adults. Visitors
are 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

24. 23
the opportunity to participate in group activities, often under the supervision of a qualified
pre-school teacher.
Childcare for schoolchildren is the collective name for three types of activity available to
children 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 and
after school and on holidays. A leisure-time centre is a pedagogical group activity for
school children up to the age of 12. Its task is to function as a complement to the school
and provide children with meaningful leisure and support in their development. The
leisure-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 and
guidance provided by leisure-time centres or family daycare homes. It can also function
as a supplement for schoolchildren who go to family daycare homes. The children are
not 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 services
Very few children under the age of 18 months are attending ECEC services; almost all of
them are cared for by one of their parents at home. However, all children are entitled to
a place from their first birthday. Forty-five per cent of all children aged one to two and 86
per cent of those aged two to three are attending pre-school, as well as 91 per cent of
the three- to four-year-olds and 96 per cent of five- to six-year olds. Of children aged six
to seven, around 94 per cent attend pre-school class with another four per cent in this
age group already in compulsory schooling. 38
Family daycare is attended by about seven per cent of all children between the age of
one and six plus another one per cent of children of school age. This form of childcare is
more important in rural areas. Seventy-six per cent of children aged six to nine attend
leisure 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 in
the autumn of 2005, an increase of 4,600 pupils compared with the previous year.
Quality of ECEC services
Staff qualification
Each centre-based childcare provider is required to have a director with a teaching or
pedagogue 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 are
trained child assistants with a three-year upper secondary training certificate. In family
daycare, staff are employed by the local authority, which determines the required
training levels. Many family daycarers are former teachers or child assistants. Seventy
per cent have either a child assistant certificate or have received 50 to 100 hours of
mandatory training from their local authority employer, although they are, in principle, not
required to have a qualification.

25. 24
Staff-child ratio
There is no national regulation determining the number of children per adult or the
number of children in one group. The Swedish National Agency of Education has drawn
up general guidelines. In practice, in ECEC centres and family daycare the staff-child
ratio is on average 1:5.5 children. The maximum group size in pre-school centres is 17
children per group, with a ratio of 5.4 children per trained adult. In pre-school classes the
ratio is on average 1:14.9 (school year 2006/07).
Municipalities have the responsibility to monitor the quality of ECEC services. There is
no regulation on a national level concerning staff-child ratios. These are set by the local
authorities and can vary considerably between them.
Expenditure, funding and parents’ fees
Over the last couple of years the Government has taken a number of measures to
enhance the quality of pre-school education and care for all children. The maximum fee
reform (introduced in January 2002), universal pre-schooling for children aged four and
five (since January 2003) and the right to pre-school for children of the unemployed and
those on parental leave are part of this quality enhancement. The maximum fee was
introduced from 1 January 2002 and means that a ceiling is set on the amount of the fee
that a municipality can charge parents (see Table 7). Households with an income of over
SEK 42,000 per month pay at most the maximum fee, other households pay at most a
certain percentage of their gross income. Since 2003 all municipalities in Sweden apply
a 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) / month
Child one (youngest) SEK 840 2
Child two SEK 420 1
Child three SEK 420 1
Child four No Fee –

26. 25
Table 8: Public spending on early years services in 2006
Early Years
Service
Provider
Total
expenses/national
level in SEK (£)
In % of
GDP
Expenses per
enrolled child
in SEK (£)
Level of financing
via parents’ fees
(%)
Pre-school 40,947,650,000
(3,046,505,160)
1.45 105,000
(7,812)
8
Family
daycare home
2,696,664,000
(200,631,801)
0.0955 84,300
(6,271)
10
Leisure-time
centre
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 301
41
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 the
municipalities and takes into account any additional resources needed for children with
special needs. Pre-school fees and their maximum level used to vary between
municipalities but nowadays all have adopted the maximum fee. This means the parents
are not charged fees above a certain threshold. For this the municipalities receive a
special state grant to compensate for the loss in revenues. The maximum fee is based
on a fixed percentage of parents’ income. It is three per cent (maximum SEK 1260) for
one 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 per
child was US $6,300 (see Table 5 above).43
The expenditure in 2005 for total childcare
and pre-primary spending by the Government totalled to 0.9 per cent of GDP according
to OECD data.44
However, the OECD notes that this is likely to be a significant
underestimation. Table 8 gives the figures for public spending on early years services
according 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 account
the 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 of
four 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 are
unemployed or on parental leave have the right to 15 hours pre-school activities per
week.
Changes in quality due to the reform measures
The average staff-child ratio has changed marginally during the period of pre-school
reforms. The number of children per family childminder has decreased slightly and the
number of children per employee has increased at leisure-time centres. The average

27. 26
number of children per employee is 5.2 in pre-schools, 5.1 in family daycare and 18.6 in
leisure-time centres.45
The proportion of staff with teacher training from higher education in pre-school has
varied marginally (between 52 and 54 per cent) between 2000 and 2005. In the case of
leisure-time centres, the proportion of staff with teacher training from higher education
decreased from 68 per cent in 1998 to 57 per cent in 2002, but has subsequently
increased slightly to 59 per cent in 2005.46
As regards the educational level of staff, there
have been large variations between municipalities both before and after the reform. The
greatest variations are in leisure-time centres. Despite pre-schools in some cases having
been expanded considerably as a result of the reform, the average group sizes and staff
density have changed relatively little during the years in question. In the case of group
sizes, 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 the
activities as intended.
Central government grant for quality assurance measures
As from 2002, a special central government grant was introduced for quality assurance
measures in childcare for municipalities that apply the maximum charge. Around SEK
500 million per year has been distributed to the municipalities. The follow-ups show that
the grant has been used in the first place for staff reinforcements at pre-school. The
proportion of the grant which has been used for staff reinforcement in pre-schools (grant
years 2002–06) has varied between 75 and 79 per cent of the total grant amount. In
addition, around 10 per cent has been used for measures to increase competence at
pre-school, and the remaining ten per cent has been used for childcare for school
children.

28. 27
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 quality
services. Currently, as stated by the Organisation for Economic Cooperation and
Development, a public supply-side funding model, managed by public authorities, brings
more uniform and higher quality of childhood populations (one- to six-year-olds) than
demand-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 being
lowest in Denmark and Sweden. Consequently, public spending in these two countries is
higher 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 this
good and control its funding, regulation, supervision and quality to ensure quality
childcare for all young children. In addition, funding should be (and is) tied to the
fulfilment of requirements with regards to staff qualifications and staff-child ratios. In
particular, subsidies in New Zealand are tied to quality factors. In Sweden a grant for
quality assurances has been mainly used for staff reinforcement, which should improve
quality. High quality childcare and early years education is costly. Several studies have
shown 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 childcare
for children aged one to six.

29. 28
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; and
Eurybase – The Information Database on Education Systems in Europe at
http://www.eurydice.org, unless otherwise stated
2
Child assistants are fully part of the pedagogical teams and compose nearly 50% of staff in pre-
schools
3
European Commission Network on Childcare and Other Measures to Reconcile the
Employment and Family Responsibilities of Men and Women (1996) Quality Targets in Services
for Young Children, p.14, Toronto; online at
http://www.childcarecanada.org/pubs/other/quality/Qualitypaperthree.pdf
4
EACEA/Eurydice Network (2009) Early childhood education and care in Europe: Tackling social
and cultural inequalities, p.70, Education, Audiovisual & Culture Executive Agency
5
http://www.hm-treasury.gov.uk/d/pbr04childcare_480upd050105.pdf
6
See Cleveland, G and Krashinsky, M (2003) Financing ECEC Services in OECD Countries,
Chapter 3, OECD: Toronto
7
ibid, Table 2
8
Expenditure on ISCED Level 0 is 1.1% following http://www.childcarepolicy.net – International
ECEC policies
9
A similar figure, 2.37% (1.1% for ISCED Level 0) is given in Cleveland and Krashinsky (2003)
op cit
10
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 5.1
12
OECD (2006) op cit (note 1), p.114
13
PricewaterhouseCoopers (2004) Universal early education and care in 2020: costs, benefits
and funding options, report for the Daycare Trust and the Social Market Foundation
14
Ministère des affaires étrangères (2007) Early childhood Policy in France
15
Figures for 2006, OECD Family database, op cit (note 1), Enrolment in day-care and pre-
schools, Table PF11.1
16
Eg Certificat d’Aptitude Professionelle (CAP), a Vocational Training Certificate specialising in
early 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.106
19
Figures for 2009. If the family has more than one child the income levels go up, see
http://www.caf.fr/wps/portal/particuliers/catalogue/metropole/afeama
20
The ‘short’ APJE is paid from the fifth month of pregnancy until the child reaches the age of 3
months. The ‘long’ APJE is paid between the ages of 4 months and 3 years
21
This grant is also paid in case of adoption
22
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 education
and care’, in Reale, D (ed.), Learning with other Countries: International models of early
education and care, pp.26–29, Daycare Trust
24
Jensen, JJ (2005) ibid, p.28
25
Figures for 2006: see Eurybase (2008) The Education System in Denmark, chapter 3.16
26
See Jensen, JJ (2005) ibid, p.28
27
Licensed services other than k_hanga reo, playcentres, home-based care services and
sessional kindergartens will be required to have at least 50% of teachers with a recognised early
childhood qualification
28
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

30. 29
services may be known by many names, including crèches, private kindergartens, aoga, punanga
reo and childcare centres
29
Whanau may consist of the parents of children attending, elders and the community involved in
providing the service
30
K_hanga Reo (meaning ‘language nest’) is a type of ECE centre where all education and
instruction is delivered in the Maori language
31
Instead of being licensed, chartered home-based care services must meet minimum standards
set 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 the
Trust and the Crown, on behalf of all k_hanga reo. K_hanga whan_u receive their individual
charter from the Trust. To receive a charter, k_hanga whan_u must complete documentation
specified by the Trust, using Te Korowai as guidance
33
FCH is an occupied child-place that is funded for one hour. FCHs are the hours for which a
service may claim funding and are based on the hours a child is enrolled to attend the service or
the hours a casually enrolled child attends the service
34
Until 31 December 2008 this was known as ‘Free ECE’
35
See http://www.workingforfamilies.govt.nz/childcare-assistance
36
Skolverket (2007) Five years with the maximum fee, English summary of Report 294, Swedish
National Agency for Education: Stockholm
37
As well as for family daycare homes and leisure-time centres
38
Data for 2007/2008, from Eurybase, op cit
39
Skolverket (2006) Descriptive data on pre-school activities, school-age childcare, schools and
adult education in Sweden 2006, Report 283, Swedish National Agency for Education: Stockholm
40
ibid, Table 15
41
Table 1 in Skolverket (2006) Costs for child care and schools during the preceding calendar
year, 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 for
2006 as 2899 bn SEK, current prices, based on figures from UN Statistics, see
http://unstats.un.org/unsd/snaama/resCountry.asp
42
See Skolverket (2007) op cit
43
See OECD Family Database at http://www.oecd.org/dataoecd/45/27/37864512.pdf
44
ibid
45
ibid, Table 3
46
Skolverket (2007) op cit, pp.23–34

31. Daycare Trust, the national childcare charity, is
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Established in 1986, Daycare Trust has seen its
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November 2009
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