Today’s news / Expert group: Rising costs strain social sector
The expenses for the social sector have increased by 4.5 billion kroner from 2018 to 2022, without corresponding funding from the state. Photo: Thomas Traasdahl/Ritzau Scanpix

Expert group: Rising costs strain social sector

A social area expert group, led by Torben Tranæs of Vive, reports increased expenses are burdening municipal budgets without assurance of improved quality. Spending on social services has risen by 4.5 billion kroner from 2018 to 2022 without matching state financing, according to the group. Residential care facilities, accounting for 54% of the increase, are the main cost drivers. The lack of state funding has led to a conflict with municipalities, which are compelled to provide social services without adequate financial support from the government. The expert group blames improper market dynamics, such as limited choices of facilities, which undermine cost-efficiency, for escalating costs. They suggest reforms, including reconfiguring the mix of care facility capacities and developing a new pricing system, to control spending.