Financing for equity in primary and secondary education
1. Education resources to subnational governments
2. Education resources to schools
3. Education resources to students and families
4. Social policies and family support programmes
Introduction
In Sweden, the Ministry of Education and Research is responsible for education and research policies. Funding for pre-primary, primary, lower secondary, secondary schools and compulsory schools for students with intellectual disabilities is shared between the State and municipalities. Municipal activities, including education, are primarily financed through municipal taxes. The State provides funds to municipalities via the general state grant, and each municipality allocates resources to its schools and independent schools chosen by its residents. The majority of school funding at the pre-primary, primary, and secondary levels comes from municipal tax revenues. See here for a detailed diagram of education funding flows.
1. Education resources to subnational governments
General State Grant and Equalisation System
Since 1993, the central government has provided support to municipalities through the general state grant, which also functions to equalise differences in fiscal capacity between municipalities. The grant compensates for disparities in tax revenue potential and the costs of delivering essential services, including education, elderly care, and infrastructure. The system comprises five main components: revenue equalisation grants, cost equalisation grants, structural grants, transitional grants, and adjustment grants or charges. Municipalities with a tax base below 115% of the national average receive support, while those above this threshold contribute to the system according to a formula. The cost equalisation component is horizontally funded and relies on detailed sectoral models covering ten mandatory service areas, incorporating over 100 variables such as geography, population density, age structure, number of immigrants, and socio-economic indicators.
2. Education resources to schools
There are no national regulations on how resources should be allocated between schools, and each municipality develops its own system. Typically, a basic amount is provided for each student, with additional resources added for students with special needs or other specific requirements. Costs vary between municipalities, for example due to differences in the need to provide school transport in sparsely populated regions compared with larger cities.
Per-Student and Needs-Based Grants
Municipalities are responsible for financing both public and independent schools, primarily through a per-student grant. Each school receives a basic amount for every enrolled student, and municipalities apply a needs-based allocation model to direct extra resources to schools serving students with greater needs, such as those from families with lower educational levels or recent immigrant backgrounds.
State Grants for Increased Equity in Elementary School
In addition to general municipal funding, municipalities and independent school providers may apply for targeted state grants. In 2017, the government introduced the Equity Grant to promote equal opportunities for students from disadvantaged backgrounds. This grant is distributed based on indicators of socio-economic conditions, including the proportion of students with low-educated parents and newly arrived immigrants. Funds must be used for initiatives such as hiring additional teachers or strengthening student health and welfare services.
Sami schools and compulsory special needs schools for students with impaired hearing, severe language disorders, deaf, blindness, or visual impairment combined with multiple disabilities are financed directly by the state.
3. Education resources to students and families
All full-time upper secondary school students in Sweden are entitled to a monthly study allowance, known as studiehjälp, administered by the Swedish Board of Student Finance (Centrala studiestödsnämnden, CSN). The allowance supports students in continuing their education (paid to guardians until the student is 18 and then paid directly to students). In addition to the basic allowance, students from low-income households may be eligible for extra financial support, including means-tested supplements or boarding allowances for those who need to live away from home to attend school.
4. Social policies and family support programmes
A universal child allowance is automatically paid to parents who live and have children in Sweden under the age of 16. The child allowance is shared between the parents if there are two legal guardians. Parents can also, through a joint decision, choose for the child allowance to be paid to only one of them. If there is only one legal guardian of the child, the allowance is paid fully to that person. If the child continues their studies in compulsory or compulsory special school when they turn 16, the Swedish Social Insurance Agency provides an extended child allowance until the end of their education.
Sweden also provides a means-tested housing allowance for families with children and for young people between the ages of 18-28 who need financial help to pay for housing costs. The amount paid depends on the applicants’ income, their housing cost and the size of their home.
5. School meal programmes
The Swedish Education Act states that school meals are provided free of charge to all students in compulsory school, regardless of socioeconomic background. Although not mandatory, most upper secondary schools provide free school meals as well. The meals are designed to be nutritious, supporting public health and helping to reduce social and economic inequalities. The Swedish Food Agency (Livsmedelsverket) issues national guidelines to ensure that meals served in schools and preschools meet quality and nutritional standards.
This profile has been reviewed by Professor Björn Öckert of the Institute for Evaluation of Labour Market and Education Policy and Emma Jansoon, Deputy Director of the Swedish Ministry of Education and Research.
