Greater transparency in preschool billing
City Council approved changes today to how Reykjavík City presents preschool bills. Under the changes, bills will show not only parent fees and discounts, but also the average operating cost per child and Reykjavík City's contribution toward the services.
Preschool is the first level of education and lays the foundation for children's ongoing learning and development. Staff professionalism and dedication are essential to educating, nurturing, and caring for children in daily preschool activities. Funding early childhood education is an investment in children and their future. It is vital for parents, staff, and other city residents to see the scope and value of this work.
The importance of showing the scope and value of early childhood education
Bills currently list tuition, meal fees, applicable diaper fees, and any discounts parents receive. However, bills show only the portion parents pay, without indicating the total cost of the services or the City's contribution. As a result, the bills do not provide a complete picture of the value of the services and the funding devoted to them.
Parents cover about 6.3% of costs
According to the 2027 cost estimate, based on the Snorri financial model, the average annual cost per preschool child in Reykjavík is projected to be ISK 4,965,601. On average, parents pay 6.3% of that cost, while Reykjavík City covers 93.7%. Transparency regarding costs and funding is a standard part of providing service information, whether offered by public authorities or private entities.
The goal of publishing this information on bills is to give parents a clearer picture of the value of the services and make the City's contribution more visible. The changes also aim to improve understanding of the scope of early childhood education and increase recognition of the crucial work preschool staff do every day. The value of early childhood education cannot be measured in money alone, but information about its funding is a key part of the overall picture.
The Department of Education and Youth will develop and implement the changes in collaboration with the Department of Finance and Risk Management. An implementation plan and timeline are expected to be submitted to the Preschool and Day Care Council no later than Jan. 31, 2027.
Read more in the proposal for greater transparency in preschool billing
