Learning from Finland’s “Cash-for-Childcare”

Developed countries across the board are struggling with declining birth rates due to changing lifestyles, and are undergoing repeated trial and error in finding ways to support child-rearing. The Nordic countries, which are considered exemplary cases, are doing the same, and their "Cash-for-Childcare" (CFC) system, in particular, is a policy that can be of great use to Japan

• In Finland, 50% of parents use home childcare (CFC)
• Home childcare support is one option
• Japan's childcare support is already on par with Scandinavia
• CFCs are not a solution to the declining birthrate

In Finland, 50% of parents use home childcare (CFC)

The CFC system began in Finland in 1995 and has since spread to other Nordic countries. It provides financial support to fill the gap between the end of parental leave and the start of public childcare services.

According to Takeda (2018), as of 2014, Finland had the highest usage rate (50%), while Denmark and Sweden had low usage. In both countries, childcare services begin immediately after parental leave (approximately one year), so the need for CFC is thought to be low.

Source: Compiled by the author based on the Nordic Statistics database (2023) for Finland, Norway, and Sweden, and the Ministry of Education, Culture, Sports, Science and Technology's "Current State of Early Childhood Education" (Reiwa 2, materials from the Study Group on Improving the Quality of Early Childhood Education Practices) for Japan

Conversely, in Finland, even after the roughly one-year parental leave is over, the childcare utilization rate remains in the 30% range for one-year-olds and in the 80% range for children three and over. The high CFC utilization rate in the country is thought to reflect the large number of families who choose to raise their children at home.

Looking at the utilization of childcare services in Japan, Japan is somewhere between Sweden and Finland. It is possible that there is a certain need for CFCs among those raising children at home in Japan as well.

Home childcare support is one option

The introduction of CFCs can sometimes be overshadowed by ideological conflict. A prime example is Sweden, where conservatives advocate a "return to the family" and liberals advocate gender equality, with CFCs being seen as a representative measure of the former. As a result, the system has become unstable, with repeated introductions and abolitions occurring with changes in government.

If Japan were to consider introducing CFCs, it would be better to avoid letting ideology influence policy and instead present them as an "option" that meets the diverse needs of each family.

the "16th Basic Survey on Fertility Trends" (National Institute of Population and Social Security Research, 2021) , the employment status of women in Japan before and after the birth of their first child (2015-2019) shows that 17.4% were "unemployed before pregnancy" and 23.6% left work after childbirth. This combined figure of 41.0% represents a certain percentage of women devoted to housework and childcare.

While some people quit out of necessity because "it's difficult to balance work and family life," 20-30% also had positive motivations, such as "to devote more time to housework and childcare" (survey commissioned by the Ministry of Health, Labor and Welfare). CFC can be an effective support system for those who wish to raise children at home.

In addition to providing an "option" for families raising children at home, CFC also ensures fairness. Families who use daycare centers receive indirect benefits in the form of subsidies for childcare services in addition to direct benefits such as child allowances. The amount is approximately 150,000 yen for a 2-year-old child in the Tokyo metropolitan area (Itabashi Ward), but this benefit does not extend to families raising children at home. CFC can be expected to bridge this gap.

Japan's childcare support is already on par with Scandinavia

Comparing childcare support systems across countries, Japan's systems have already reached a level comparable to that of Northern Europe. In UNICEF's "Where Do Rich Countries Stand on Childcare?" (2021) , Japan ranked 21st overall out of 41 countries, placing it in the middle of the pack, but first in parental leave systems. While Japan ranks low in childcare participation rate (31st), its enrollment rate in daycare and kindergartens for children over the age of three is over 90%, roughly on par with Nordic countries. There

also appear to be no significant differences in attitudes or values, as often pointed out. Helsinki Sanomat (Finland), the largest subscription newspaper in the Nordic countries, frequently publishes articles lamenting the low level of men's participation in childcare, and survey results are filled with gender-based comments such as "wives are better at raising children" and "fathers are the breadwinners."

In Finland, the ratio of parental leave days taken is 90% for mothers and 10% for fathers, remaining stable for the past 10 years. Meanwhile, the rate of fathers taking parental leave in Japan has risen significantly, from 1.89% in 2012 to 17.13% in 2022.

The situation in Japanese society is gradually improving in terms of both systems and values. While there are some voices in Japan that idealize Scandinavia, rather than overly idealizing it, it seems appropriate to selectively adopt measures such as CFC in line with Japan's national circumstances.

CFCs are not a solution to the declining birthrate

Incidentally, economic support such as CFC and improvements to the childcare environment are primarily focused on supporting families with children, and do not address the issue of "non-marriage and late marriage," which is the cause of the declining birthrate.

This is also evident in the current situation in the Nordic countries, which have been working on child-rearing support measures for a long time. Comparing the total fertility rates of the four Nordic countries in 2010 and 2023, all four countries have seen a significant drop.

Source: Compiled by the author based on World Bank Open Data (Fertility rate)

In that sense, the "unprecedented measures to combat the declining birthrate" proposed by the Kishida administration are primarily child-rearing support measures, and it is unlikely that they will be very effective in combating the declining birthrate.

(This article was revised and added to the August 2023 issue of "EN-ICHI FORUM.")

• 国立社会保障・人口問題研究所（2021）「現代日本の結婚と出産 －第16回出生動向基本調査 （独身者調査ならびに夫婦調査）報告書－」、https://www.ipss.go.jp/ps-doukou/j/doukou16/JNFS16_ReportALL.pdf （2025年6月6日アクセス）。
• 竹田昌次（2018）「北欧福祉国家における家庭保育手当（the Cash-for-Childcare）をめぐって−北欧福祉国家型家族モデルを分析視角として—」. 『立命館経済学』第56巻第6号.pp329-345。
• UNICEF（2021） ”Where do rich countries stand on childcare?” https://www.unicef.org/innocenti/media/5431/file/UNICEF-Where-Do-Rich-Countries-Stand-on-Childcare-2021.pdf (Accecced on 6th June 2025).

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