Sweden’s Universal Subsidized Daycare for Children 1-5 (1975–ongoing)

The 1975 National Preschool Act established a comprehensive and affordable system praised for promoting gender equality and supporting working families in Sweden. All families are entitled to subsidized pre-school (förskola) childcare from the child’s first birthday to the age of six. Childcare fees are determined by the number of children in a family and the gross income of the guardians, with a SEK 1382 (USD 135) per month cap on fees. Each preschool receives a subsidy for each enrolled child, covering all costs associated with operating the preschool.

Sweden’s National Preschool Act was introduced in 1975 to expand the public childcare system by offering at least 525 hours per year (15 hours per week) of free preschool education from the date the child turns one.¹ The Act was implemented in response to economic efforts aimed at supporting working mothers, who disproportionately bear the burden of unpaid care work, during a period when the country faced a significant labor shortage. The Swedish Childcare Model is built on the principle that every family should have equal childcare opportunities regardless of income level. 

To apply, guardians must either be registered in the relevant municipality or be able to demonstrate that they will become a permanent resident.² Preschools are available to children from the ages of one to six throughout the year. In some municipalities, childcare services are also available during evenings and nights.³ Preschool operates for extended hours from 6:30 a.m. to 6:00 p.m. with an average of 30 hours of weekly attendance for each child. Children whose parents are unemployed or on parental leave are eligible for 15  hours of childcare per week, with some municipalities offering more than this. Single parents are provided a maintenance grant to ensure that their children have access to the same standard of living as children with two parents.⁴ Additionally, families with limited financial resources who require assistance with their housing expenses are eligible for housing benefits.

For the first child, the parent contribution is capped at SEK 1382 (USD 135) a month, or a maximum of 3 percent of the guardians’ gross income. For the second child, the fee is SEK 922  (USD 90) a month, or a maximum of 2 percent of the guardians’ gross income. For the third child, the fee is SEK 451 (USD 44) a month or a maximum of 1 percent of the guardians’ gross income. Families with a fourth child are exempt from paying childcare fees. 

In addition, each preschool in Sweden receives a subsidy for each enrolled child, including private preschools. Municipalities pay out this subsidy monthly, with SEK 9,800 (USD 957) per month provided for each three to five year-old child and SEK 11,211 (USD 1,096) per month for children aged one or two years old.⁵ This subsidy is intended to cover all costs associated with operating the preschool and expenses for children with special needs.⁶ 

The national curriculum for preschool is linked to the curriculum for compulsory education, and both share a common perspective on knowledge, development, and learning. This is aimed at achieving the overarching goal of improving and maintaining quality across förskoleklass (“preschool year” or year 0), lågstadiet (years 1–3), mellanstadiet (years 4–6), högstadiet (years 7–9) and gymnasium (high school, years 10–12). The national government sets the general goals and guidelines for the education system, but the municipalities are responsible for implementation. Even if the preschools are run by private entities, they must still provide childcare that aligns with the national curriculum.⁷ 

Implementation

Since the 1970s, Sweden has introduced several initiatives to expand its childcare services. In 1985, the government ensured that all children aged between one and six had access to childcare if their parents were working, studying, or if the child had special needs.⁸ In 1995, new legislation required all municipalities to provide childcare at municipal preschools. A decision in 1996 to integrate preschool and childcare led to the development of a new national preschool curriculum in 1998, with responsibility for childcare moving from the Ministry of Health and Social Affairs to the Ministry of Education and Research.⁹ 

In 2000, the entitlement to attend preschool was extended to children with parents who are unemployed, on sick leave, or parental leave.¹⁰ In 2002, a cap of SEK 1382 (USD 135) per month or 3% of their gross income, whichever amount was lower, was introduced to care for their first child. The payment obligation decreased for each subsequent child, and childcare was provided free of charge for the fourth child.

In 2016, 83% of preschools were operated by municipal authorities, while 16% were privately run preschools receiving government subsidies.¹¹ It is important to note that both types of preschools ultimately fall under the responsibility and supervision of the National Agency for Education.

Cost

The contribution from the parents amounts to 17 percent of the total cost of childcare.¹² The remainder is subsidized by the government through a combination of central government grants and tax revenue.¹³ 

Sweden made a significant investment in childcare, with spending increasing from 1.68 percent of GDP in 1980 to 2.13 percent of GDP by 1993.¹⁴ The total expenditure for the preschool system was SEK 38.5 billion (USD 3.8 billion) in 1997, which accounted for 2.3 percent of GDP.¹⁵ These funds were divided among preschool centers (67 percent), family daycare (15 percent), and leisure time centers (18 percent). Between 1975 and 1990, the expenses associated with childcare surged significantly from SEK 2.9 billion (USD 284 million) to SEK 35 billion (USD 3.4 billion), which was an unparalleled growth in any other industry or sector.¹⁶ As of 2020, Sweden spent approximately USD 18,010 per child on early childhood care annually, while the average expenditure among OECD countries stands at USD 14,436.¹⁷ 

Assessment

According to a study of 80 countries by the US News and World Report, Sweden has been ranked in 2020 the best country for raising kids due to its state support and family-friendly culture, making it the top choice for childcare.¹⁸ 

The legislative efforts that started in the 1970s contributed to a growth in  enrollment of children in Swedish preschools.¹⁹ From 1970 to 1998, the number of children in full-time care surged from 71,000 to 720,000, with 73 percent of all one to five-year-olds attending either preschools or family daycare centers by 1998—demonstrating the demand for childcare services.²⁰ As of 2022, preschool enrollment in the country had reached nearly 86 percent of all children between the ages of one and five attending preschool.²¹

In addition, there is evidence that improved health outcomes for children have been observed as a result of early exposure to daycare, particularly among children in lower-income households. Children benefiting from the reform have fewer mental health conditions in primary school—with the probability of being diagnosed with a mental disorder decreasing by up to 2.9 percentage points.²² Exposure to daycare also supports early immunization processes that improve the health of the children in the long-run.²³ 

The reforms of the 1970s, including the childcare system, have led to significant impacts on gender equality. Studies have shown that the high-quality public child care in Sweden encourages labor market activity of women with preschoolers,²⁴ contributing to Sweden ranking first out of 43 countries in the OECD’s 2014 report on maternal employment rates.²⁵ Alongside the childcare system, parents are entitled to 480 days of paid leave when they have a child through birth or adoption, with the first year paid at 80 percent of their salary, and this leave can be taken up until the child turns eight years old. Additionally, if parents need to take time off to care for sick children, they are entitled to continue receiving 80 percent of their pay.²⁶ The leave entitlement applies to each child, allowing parents to accumulate leave from multiple children. Parents in Sweden also have the legal right to reduce their working hours by up to 25 percent until their child turns eight, in addition to the 480 paid days.²⁷ 

A study of European countries, including Sweden, demonstrated that a 1 percentage point (pp) higher use of full-time childcare arrangements for children under the age of three is associated with a 0.18 pp lower difference between the employment rate of men and women in the case of one child under the age of six and up to a 0.36 pp lower difference in the case of three or more children under the age of six.²⁸ The childcare reforms—along with other parental leave and employment reforms from the 1970s—have thus contributed to a narrower gender gap in Sweden. Sweden has the narrowest gender gap among all OECD countries, with only a 3.7 percentage point difference between men and women in 2016, down from 20.3 percentage points in 1975.²⁹ In comparison, across OECD countries, there was an average difference of 17 percent in the labor force participation rates between men and women in 2017.³⁰ 

Additional Information

Parents are entitled to 480 days of paid leave when they have a child through birth or adoption, and this leave can be taken up until the child turns eight years old.³¹ The leave entitlement applies to each child, allowing parents to accumulate leave from multiple children. Additionally, parents in Sweden have the legal right to reduce their working hours by up to 25 percent until their child turns eight, in addition to the 480 paid days.³²

Preschool operates for extended hours from 6:30 a.m. to 6:00 p.m. with an average of 30 hours of weekly attendance for each child.³³ Generally, children are grouped by age into toddler groups (1-3 years old), sibling groups (1-5 years old), and older groups (3-5 years old), with varying group sizes. An average toddler group may consist of approximately 14 children and three teachers, while sibling groups can have up to 18 children and three teachers. All teachers are qualified, with half holding a 3.5-year university degree and the other half having a nursery nurse certificate obtained after two years at upper secondary/senior high school.³⁴

Sweden also rates amongst the highest of all countries in the world when it comes to child-related policy inputs such as the provision of a child benefit allowance, maternity leave to be shared by both parents, access to preschool for all children whose parents require it.³⁵

Furthermore, the idea is that society benefits from the productivity gains and retention of skilled workers in the workforce when both parents are employed.³⁶

Activities within the kindergarten classroom © Adobe Stock / siripimon2525

Tags

• Care Economy
• Children and Youth
• Education
• Europe
• Gender
• High-Income Country
• Sweden