Working group excludes municipal mergers from elder-care funding review

A working group preparing a new funding model for elder care will not examine municipal mergers, KVF reports. The issue is not included in the group’s mandate.

The group includes representatives of the national government and municipalities. Finance Minister Aksel V. Johannesen said growing pressure on elder care would make it increasingly important to consider municipalities in a new context.

Johannesen was responding to a question from MP Jóhannis Joensen about municipal equalisation and a new funding model. He said the model must account for how different parts of the country are affected, so disparities between regions do not become too large.

The working group is expected to make recommendations later this year. Johannesen said he had also asked it to assess a block grant system, including its advantages and disadvantages.