A report indicates that the city of Reykjavík will absorb 20% of the salary increases outlined in collective agreements for families with children in 2026. This significant deduction is attributed mainly to a newly introduced increase in preschool fees, alongside rising costs of utilities, such as heating. The analysis by the trade union VR suggests that the municipalities are breaking their promises in collective bargaining by imposing higher fees on families than what was agreed upon in previous negotiations.

Parents of children who require the maximum allowable childcare hours, for example, 42.5 hours per week, will see the city take half of the salary raise that they might receive due to new agreements. The union points out that on average, fee increases implemented by the city have surpassed inflation and gone well beyond the reasonable increases previously agreed to by the local authorities in the last wage negotiations. This situation raises concerns about the economic strain placed on families, especially those with young children, who are already facing financial pressures from rising living costs.

The implications of this fee hike not only exacerbate financial difficulties for families but also call into question the commitment of the municipal government to uphold past agreements with citizens. As families are forced to allocate a larger portion of their income to cover increased fees, the discussion about fair compensation and the responsibilities of local governments comes to the forefront. The situation underlines the need for accountability and transparency in municipal financial policies to ensure the welfare of families within the community.