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For households with medium or high income (NOK 250,000 and NOK 375,000) in Oslo and Trondheim, day-care fees are virtually the same whether the parents choose a municipal or private day-care facility. The level of day-care fees differs, however, between the two cities. Trondheim is NOK 200 cheaper per month than Oslo.
Parents in Oslo with medium or high incomes pay the same for a day-care place whether it is private or municipal. The same applies to Trondheim, but here the price level is lower.
Stavanger has a much higher price level for private day-care places compared to municipal day-care centres regardless of household income. For high-income households in Bergen, it is cheaper to have children in private rather than municipal day-care facilities. For medium-income households the parental fees for municipal day-care centres are lower than for private ones.
Payment system determining factor
Around half of the municipalities operate with means-tested fees based on household income. Municipalities that use means-tested fees often have high day-care fees for high-income households and similarly low fees for low-income households with an income under NOK 100,000. The municipalities of Oslo, Bergen and Stavanger operate with means-tested fees.
The opposite of means-tested fees are flat fees, which are the same regardless of household income. This is the case in Bodø and Trondheim. Flat day-care fees are often expensive for low-income households. But with the combination of low income and high day-care fees, households can in many cases qualify for various discount and free place schemes, or receive economic assistance from the welfare office. Private day-care centres charge for the most part flat fees.
Weekly Bulletin issue no. 19, 1998