Expenses in Denmark are soaring as a growing number of parents receive compensation for lost earnings due to children who are unable to attend school or daycare. The rise is fueled by increasing cases of school refusal and child mental health issues.
Soaring Costs Linked to School Refusal and Child Mental Health
Across Denmark, an increasing number of parents are stepping away from the workforce to care for children who cannot attend school due to physical or psychological challenges. As a result, local governments are facing substantial financial pressure. In 2023 alone, Danish municipalities paid approximately 2.5 billion kroner (around $360 million) in compensation for lost earnings—a jump of 1 billion kroner compared to 2019, even after adjusting for inflation. The rising expenses in Denmark are a growing problem for local governments.
This financial support is granted to parents caring for children with severe disabilities, chronic illnesses, or pronounced mental health struggles. However, one of the most rapidly growing reasons for these absences is school refusal—a condition where children are unable or unwilling to attend school due to anxiety, emotional distress, or other psychological issues. The expenses in Denmark creates both stress and extra costs for many parents.
Structural Challenges in the Danish School System
According to experts, the rising costs are a symptom of broader structural problems in Denmark’s public school system. Many mainstream schools have seen budget reductions over the past decade, leaving them ill-equipped to meet the growing needs of at-risk students. This includes children dealing with anxiety, social difficulties, or neurodevelopmental conditions like autism.
Currently, one in five students in the Danish public school system has what authorities define as an “alarmingly high” absentee rate—meaning they miss more than 10 percent of the school year. In the academic year 2023/2024 alone, over 10,500 students missed more than three months of school. This figure has nearly doubled in the past decade, highlighting a growing educational and health crisis.
Serious Impact on Families
The increasing prevalence of school refusal is closely tied to emotional and financial hardship within families. In many cases, parents wind up quitting their jobs or taking extended unpaid leave to care for their children. While the government partially reimburses municipalities for these compensation payouts—similar to other types of social aid—the personal toll on families remains high.
In cities like Randers, this trend has become particularly visible. In 2022, Randers Municipality paid out 36 million kroner in parental compensation. That figure rose to 43.9 million kroner in 2023 and is projected to reach 50.8 million kroner in 2024.
Local leaders in Randers acknowledge the growing problem, pointing to both the stress it places on families and the strain on municipal budgets. Several parents in the area have shared stories of caring for children with complex needs, such as autism and anxiety, often with limited support or guidance.
Efforts Underway—but More Needed
In response to the crisis, some municipalities are introducing measures aimed at early detection and intervention. For example, Randers has invested in so-called “absence coordinators,” staff members in schools tasked with identifying vulnerable children before their absenteeism becomes chronic.
The Ministry of Children and Education has recommended that local governments allocate more resources to general education—especially in early grades—to reduce the need for more costly interventions later. Experts argue that more tailored support programs could have helped many of the 10,567 students with long-term absences before their struggles escalated.
However, despite these efforts, many municipalities still lack flexible, early-stage services that can quickly intervene when a student begins to show signs of distress. Without swift action, children end up staying at home for extended periods, falling even further behind both academically and socially.
Urgent Need for Preventive Action
Municipal leaders and local politicians are calling for a shift in focus—from reactive measures to long-term prevention. Families and educators alike are urging for investments in early support systems, specialized educational resources, and mental health services tailored to children’s needs.
The hope is that, by reaching children earlier and with the right kind of help, municipalities can reduce both the emotional toll on families and the ballooning expenses in Denmark to local governments. The financial strain is already considerable—and if left unchecked, it will likely grow even more severe in the coming years.
