Kópavogur limits fee rises for families with children to 2.5%

Kópavogur municipality will limit increases in fees affecting families with children to 2.5% for the second consecutive year, mbl.is reports. The limit matches the Central Bank of Iceland’s inflation target.

The decision is conditional on collective agreements holding and the government and other municipalities being prepared to take comparable measures, according to a statement from the municipality.

“This is, of course, a shared responsibility for all of us,” Kópavogur Mayor Ásdís Kristjánsdóttir told mbl.is. She said she would have liked to see the government and more municipalities take similar action.

Kópavogur decided in April 2026 to limit fee increases affecting families with children to 2.5%. It also decided to withdraw the part of the year’s increases that exceeded that level.

Ásdís said coordinated action was needed to bring inflation under control and support lower interest rates, with the public sector playing a key role.

“We are stepping forward for the second year in a row and sending a clear message that Kópavogur is prepared to limit fee increases for families with children to the Central Bank’s 2.5% inflation target,” she said.

She added that the municipality was making the move on the condition that collective agreements held and that the government and other municipalities were willing to take similar steps.

Ásdís said she hoped the government would reverse the 5.2% fee increases proposed in next year’s budget bill. She also said she understood from recent reports that the prime minister was prepared to discuss such measures with labour market representatives.