Espoo to shut down 15 daycares to resolve legal issues and save funds
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The City of Espoo in Finland decided to end the current operation of 15 daycares, affecting 319 children, by June 30, 2028.
The Growth and Learning Board reached this decision unanimously in early October to address the fact that the current service model does not comply with national procurement laws. Ulla Lehtonen, the head of early childhood education for the city, explained that the current "net-budgeted" daycare model operates without the required competitive bidding process.
Because the procurement value exceeds 60,000 euros, the law requires a tender process that the current setup fails to meet. The city also expects to save between 350,000 and 1.9 million euros annually by moving these children into different service models, such as municipal early childhood education or private care. Parents and service providers expressed concern over the transition.
Paavo Pietarinen, chairman of a local support association, noted that the proposed alternative models would leave small daycares with budget shortfalls of tens of thousands of euros that families cannot cover. Lehtonen suggested that providers could potentially stay in business if they were bought by larger chains, which would allow them to operate under different funding models. The city is currently urging guardians to apply for spots in municipal or other private daycares as quickly as possible.
While the city maintains it wants providers to continue operating, the current legal and financial framework makes the existing structure unsustainable.
