New initiative: Childcare fees in Leipzig to be adjusted to reflect rising childcare costs

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It has been primarily the CDU parliamentary group that has repeatedly blocked efforts in recent times to adjust Leipzig’s parental contributions to reflect the rising costs in childcare centres. The city is now making a fresh attempt to secure a moderate adjustment to these contributions. This is because the city itself must cover the shortfall. And this involves sums running into millions every year, which are causing the city’s mountain of debt to grow further.

Sharply rising staff and operating costs, improvements to staff-to-child ratios, an increase in the minimum wage and, last but not least, state legislation: In Leipzig, parental contributions for childcare in nurseries, day-care centres and after-school clubs are set to be adjusted for the first time in ten years. The administration emphasises that the exemption from contributions for low-income parents will remain unchanged.

The Lord Mayor is now proposing to the City Council that parental contributions be raised to 22.5 per cent (nurseries and after-school care centres) and 15 per cent (crèches) of the actual childcare costs per annum. Until now, the share of childcare costs borne by parents has been significantly lower.

For families, the planned increase would mean that the contribution towards costs would rise, for example, by 26 to 36 euros per month for a nine-hour nursery place, and by an estimated 10 to 13 euros for an after-school care place. The monthly contribution for a nursery place currently stands at 130 euros.

Even with the planned increase, the City of Leipzig remains at the lower end of the scale for parental contributions charged in other Saxon local authorities. For example, parents pay 215 euros for a nine-hour nursery place in Dresden, 203 euros in Borna and 190 euros in Hoyerswerda. Numerous Saxon local authorities have raised their parental contributions over the past two years.

Millions are at stake

If the city council approves the administration’s proposal, the monthly parental contributions will increase from 1 January 2027. The contribution is calculated on the basis of the previous year’s operating costs statement and will be announced in the autumn for the coming year, the city explains. For the financial years 2027 and 2028, the city expects additional revenue of around 4.35 million euros and 5.27 million euros respectively.

“Even with this increase, Leipzig remains a family-friendly city. We know that higher contributions are a challenge,” comments Lord Mayor Burkhard Jung on the proposal. “Nevertheless, the adjustment is necessary in view of the budgetary situation. And the legislature has set out clear guidelines on the extent to which parents must contribute towards the actual costs. Given the dramatic budgetary situation, not only in Leipzig, the state has set out clear expectations for us, which are a prerequisite for the approval of the next two-year budget. We cannot simply look at our expenditure – we must also scrutinise our revenue.”

Childcare is jointly funded by the Free State of Saxony, the local authority and parents. Since 2010, the actual parental contribution in Leipzig has fallen from just under 18 per cent to nine per cent in 2024, whilst the city’s share of funding has risen from 52 per cent to 59 per cent. Since the last fee adjustment in 2017, the cost per place has risen by just under 73 per cent in nurseries, 54 per cent in kindergartens and 44 per cent in after-school care centres.