A proposal to eliminate user fees for daycare in Copenhagen could disproportionately benefit wealthy families, according to a new analysis. The plan, championed by Lord Mayor candidate Pernille Rosenkrantz-Theil, has drawn criticism for its potential impact on the city’s finances and its beneficiaries.
The proposal would cost an estimated DKK 800 million per year, with Rosenkrantz-Theil suggesting funding would come from cuts to municipal administration. However, critics point out that no concrete financing plan has been presented.
According to figures, families in Copenhagen are generally financially secure. The average household income for families with young children is DKK 1.32 million annually, with the wealthiest 10 percent earning over DKK 2 million. For a family with two children, the elimination of daycare fees could provide a benefit exceeding DKK 60,000 per year.
Alexander Ryle, a leading candidate for Liberal Alliance, argues that the proposal would assist those who don’t require financial assistance. Rosenkrantz-Theil defends her plan, stating that high-income earners already contribute significantly through taxes.
A bourgeois-liberal think tank, Cepos, analyzed the potential impact, highlighting that many affluent families would gain. Karsten Bo Larsen, head of research at Cepos, stated that families in Copenhagen are relatively well-off financially, even when compared to families without children.
Copenhagen is scheduled to hold elections for the City Council on November 18.