Expansion of childcare by 2030 associated with additional costs of up to 4.5 billion euros

This will require up to 17,000 additional staff

In a recent study, the economic research institute EcoAustria calculated the additional financial costs and staffing requirements of expanding institutional childcare in Austria. The calculation is based on four partial scenarios, including a demand-oriented expansion for 0 to under 1-year-olds, a doubling of the childcare quota for 1 to under 2-year-olds, a childcare guarantee for children aged 22 to 35 months with a take-up rate of 90% and VIF (Compatibility Indicator Family & Work) compliant opening hours for the new childcare ratios and an expansion of VIF-compliant care for 3 to 5-year-olds to 75%.

The results of the study show that the expansion of institutional childcare to the full extent of these partial scenarios is accompanied by additional state expenditure of between 1 and 1.1 billion euros per year. However, it can be assumed that a full expansion cannot be realized immediately, as considerable efforts must be made in the area of childcare infrastructure as well as in the area of childcare and assistance staff in order to realize the scenarios. For this reason, the study assumes a target achievement path up to 2030. Depending on the scenario and the assumptions made regarding target achievement and cost increases, this results in cumulative additional expenditure of up to EUR 4.5 billion in current 2023 prices in the adjustment period up to 2030.

In addition, a significant increase in the need for personnel and skilled workers is to be expected. Specifically, this results in a need for skilled workers of around 8,800 to 10,700 people across all sub-scenarios considered. Added to this are the necessary assistants and helpers of around 4,800 to 5,900 people, resulting in a total requirement of around 13,600 to 16,600 additional people.

In summary, it can be said that the calculated additional expenditure is offset by the positive effects of institutional childcare, as EcoAustria Director Monika Köppl-Turyna explains: "High-quality, locally accessible and comprehensive childcare enables mothers in particular to participate in the workforce, relieves the labor market and has positive educational effects. At the same time, the expansion of childcare capacity must be efficient, economical and sustainable, if only because the current labor shortage is also reflected in the elementary education sector. In this context, cooperation between providers and municipalities holds enormous potential."