Senate proposes employer-funded childcare system in daycare centre bill

A federal popular initiative submitted states that parents should not have to spend more than 10% of their income on daycare places for their children. KEYSTONE/© KEYSTONE / GAETAN BALLY

In future, it will not be the federal government but employers and, if necessary, employees who will finance supplementary childcare. This is the proposal of the Senate committee. It has submitted its proposals on the daycare centre bill for consultation.

More mothers should take up gainful employment after the birth of their children. The House of Representatives, the committee for science, education and culture of the Senate both want this. However, it would like to push through an alternative concept with a childcare allowance.

By 11 votes to 1 with one abstention, it passed motions in favour of a corresponding draft bill, as reported by the parliamentary services on Friday. According to the committee for science, education and culture, it will decide which proposals to submit to on the basis of the consultation results.

Fear of a bureaucratic monster

The details of the bill have not yet been publicised. However, according to the press release, the Senate committee does not want to overburden the federal budget with a heavily tied new benefit. It is proposing a financing system in the Family Allowances Act based on employer and possibly employee contributions. It considers this childcare allowance to be compatible with the goal of counteracting the shortage of skilled labour.

According to the committee for science, education and culture, the solution presented takes into account the fear that very complex structures would have to be set up in the cantons for implementation if a federal contribution were to be introduced. This is what the House of Representatives wants. It decided this in its old composition before the federal elections – in spring 2023.

House of Representatives wants the federal government to cover up to 20% of the average cost of a childcare place borne by parents for four years. After that, the federal contribution would be redefined depending on the financial commitment of the cantons. This would cost around CHF710 million ($804 million) per year.

Dispute over distribution

As the Senate committee goes on to write, it considers the programme agreements to be a suitable instrument on the part of the federal government to support the cantons and municipalities in providing supplementary childcare. However, the majority would like to remove measures to promote quality and better harmonise supplementary childcare with the needs of parents from the bill. These areas would be the responsibility of the cantons.

According to the committee for science, education and culture, the area of support for the further development of the cantons’ early childhood development policy should be retained. The funding area for creating more institutional childcare places or closing existing gaps in the cantons’ childcare provision should also be retained.

Furthermore, an additional area of support for children with disabilities is to be introduced, which, in addition to creating places, also includes reducing costs for parents. According to the communication, a minority of the committee would like to retain all areas of support. A further minority would like to remove the further development of the early education policy, as it also considers this to be the responsibility of the cantons.

Daycare centre initiative increases pressure

For the programme agreements, the majority of the committee for science, education and culture would like to see a commitment credit of CHF128 million for four years. A minority is in favour of a commitment credit of CHF168 million for four years, i.e. a quarter less than in the House of Representatives proposal. Another minority is in favour of CHF60 million for four years.  

However, there is a consensus that the use of childcare services to supplement family life should be made cheaper and therefore more attractive. The compatibility of work and family life should be further improved in Switzerland. In addition, the increased integration of mothers into the labour market can counteract the shortage of skilled workers.

To date, the federal government has provided CHF451 million to support the creation of childcare places. 72,271 new places have been created in daycare centres, supplementary school care and daycare families. The programme, which came into force in 2003, has been extended several times. Last summer, a broad-based committee with representatives from the political left to the centre submitted the federal popular initiative “For good and affordable supplementary childcare for all (childcare initiative)” to the federal government. It demands that parents should not have to spend more than 10% of their income on daycare places for their children.