Large changes to the Reykjavik subsidy policy have left most parents without any financial assistance, which has stirred significant criticism from parent representatives and labor leaders in Iceland. Notably, Sonja Ýr Þorbergsdóttir and Halla Gunnarsdóttir have emphasized that the income-based structure of the new proposal could trap families in poverty, particularly single parents who now face increased costs for preschool services. The changes require parents to pay more or cut back on their working hours, which could reduce overall family income.

The new Reykjavik policy, presented by the city, introduces a no-fee daycare option for a maximum of 36 hours weekly but also encourages shortening of daycare hours especially on Fridays. Meanwhile, the subsidies available have been altered: the threshold for financial assistance has broadened, yet the fees for registration days have increased significantly, from previous rates to a new fee of five thousand krónur. By implementing these adjustments without robust political discourse, there is growing concern that the voices of parents and child workers are being overshadowed in the discussion surrounding these critical policy changes.

Overall, the implications of these policy revisions could be substantial for families relying on the support of preschool services. The raised costs potentially discourage parents, particularly single ones, from participating fully in the workforce. It signals a shift that could lead to broader social repercussions, including increased poverty levels among families who are already financially vulnerable, warranting further scrutiny and dialogue amongst lawmakers and community stakeholders.