1.7 Funding youth policy
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How Youth policy is funded
In Denmark, there is no specific budget for youth policy. Youth policy can be financed from either the national or municipal budgets. The Finance Act (Finansloven) determines the National Budget and allocates grants to the ministries and the regions. It also allocates grants to municipalities; however, the municipalities’ main budgets are financed through taxes collected by the municipalities within a nationally determined budget framework. Youth policy initiatives by ministries, municipalities, and regions are covered within these budgets.
An additional four acts allocate funds to associations, organisations, and voluntary social work that are youth related. First, it is the Act on profits from the national lottery pools (Udlodningsmidlerne). Second, it is The Act on Social Services (Lov om social service, §18). Third, it is the Act on the Child (Barnets Lov, § 35). Fourth, it is the Act on Non-formal Education and Democratic Voluntary Activity (Folkeoplysningsloven).
What is funded
A broad range of welfare services are funded by public funds. Directed at youth, it is lower secondary education (folkeskole), upper secondary education, special education and higher education. It is employment measures for young people and health services. Moreover, it is youth schools (see chapter 10 on youth work), youth clubs and other municipal leisure activities. Besides, there are measures for young people with special needs, measures to improve integration of young people from families with an immigrant background, measures for young people with physical or mental disability, and measures for socially vulnerable young people.
The acts mentioned above (the Act on profits from the national lottery pools, the Act on Social Services, the Act on the Child and the Act on Non-Formal General Adult Education) specifically fund initiatives such as youth organisations, youth political parties, camps, festivals, and youth conferences, youth training programmes, inclusion programmes, voluntary leisure activities and cultural activities.
It is difficult to specify how youth policy is funded, while financial accounts are often aggregated. Normally, financing child policies and youth policies are not separated, and more often youth specific costs are integrated in broader policy fields. An example on a ministerial report, Social Policy Report - In Brief, 2016, on financing social costs, brings detailed information of the distribution of social costs, however also illustrates this problematic.
In the municipalities, less than one third of the total costs are allocated to children and young people.
In the educational field, the total cost for the State Education Fund (Statens Uddannelsesstøtte) was 23 billion DKR in 2022, while the total cost of all education, in comparison, amounted to 164,4 billion DKR in 2022.
Financial accountability
The National Audit Office of Denmark (Rigsrevisionen) audits public spending on behalf of the Danish parliament and seeks to strengthen the accountability of public administration to the benefit of the citizens. It audits the government accounts and financial statements of publicly funded enterprises and verifies the legality and effective use of public funds. They conduct the audits in compliance with the Danish standards for public sector auditing.
The National Audit Office is independent in its planning and choice of audit approach and methodology. They perform the audits on behalf of the six members of the public accounts committee, who subsequently comment on the reports and submit them to the Danish Parliament (Folketinget). The annual financial audit is mainly performed as a financial audit, but often includes elements of a compliance audit and sometimes also a performance audit.
The National Audit Office of Denmark publishes approximately 25 reports every year. The Public Accounts Committee selects the subject matter in one third of the reports, the National Audit Office of Denmark decides the rest. Audits are planned based on assessments of materiality and risk. Some studies concern only one department, whereas others address the same issue across several departments.
Ensuring that action is taken on the points raised or recommendations made in the audit reports is crucial for the effectiveness of the work. The Danish audit model includes a follow-up procedure that ensures effective follow-up.
The National Audit Office of Denmark continuously audits policy areas concerning youth. Recent examples are Report on the effort to keep vulnerable young people in education (Beretning om indsatsen for at fastholde udsatte unge i uddannelse) and Report on compliance with the right of investigation for children and young people in psychiatry (Beretning om overholdelse af udredningsretten for børn og unge i psykiatrien). In process is a report on the effort for children and young people who have committed crime.
Associations and organisations that receive funding from the Act on profits from the national lottery pools (Udlodningsmidlerne) (§4 and §7), the Act on Social Service (Lov om Social Service), and the Act on Non-formal Education and Democratic Voluntary Activity (Folkeoplysningsloven) (§§29-32) must comply with the mandatory set of regulations that each individual grant scheme has.
Whether it is project funding, based on a project description with information on target groups and objectives, or operating aid, based on the number of organisation members, the benefactor must return a financial and goal achievement account, supplied by accounting reports verified by an auditor. Omitting report deadlines, or reporting misleading information, the partial or full grant may be withdrawn.
Use of EU Funds
Erasmus+ in Denmark
Denmark participates in the Erasmus+ programme to support education, training, sport and youth.
The total budget for the 2021-2027 period amounts to €26.2 billion. In comparison, the budget for the 2014-2020 period was €14.7 billion.
Out of the total budget for the 2021-2027 period, around €50 million was allocated in 2024 to projects in Denmark. These are administered by the Danish National Agency, which falls under The Danish Agency for Higher Education and Science.
On behalf of the Ministry of Higher Education and Science (UFM), the Danish Evaluation Institute (EVA) has prepared the national midterm evaluation of Erasmus+ in Denmark, covering the current programme period (2021-2027). The evaluation covers KA1: individual mobility and KA2: organisational partnerships.
Main findings are that both KAs are perceived to increase the professional and personal development of staff and students/pupils. Participation generates an international outlook, educational inspiration, reflections on own practice, intercultural dialogue and international network. Furthermore, language skills are improved.
Participants have an increased European feeling after the mobility, however it is not so much a feeling of European identity, but more an international outlook, inspiration and network. Increased internationalisation is also the institutional outcome of the participation.
The evaluation points at some difficulties in fulfilling the objectives of the four horizontal priorities. Concerning the green agenda, it is difficult to change travel behaviour, since green transportation is relatively time consuming for longer distances and it is not compensated well enough in the programme. Concerning digital transformation, obstacles are administrative burdens and IT-problems.
On the other hand, inclusion has increased in the new programme period. However, the achievement is caused by institutions and organisations that already have people with fewer opportunities as their target group.
At the administrative level, the IT systems have been challenging. Both the Project Management Module (PMM) and Beneficiary Module (BM) have had major teething problems making them unstable and slow.
Accreditation have reduced the administrative burden for both beneficiaries and the National Agency (NA) – at least regarding applications, and it makes it more flexible for institutions and organisations to use the funds.
The beneficiaries praise the NA for providing good support that is very accessible, quick and helpful. The NA uses social media to attract new target groups and has created videos and case material to establish a better understanding of Erasmus+.
The European Solidarity Corps in Denmark
Denmark participates in the European Solidarity Corps to support volunteering and solidarity.
The total budget for the 2021-2027 period is around EURO 1.009 billion. Out of the total budget for the 2021-2027 period, in 2024 around €1.8 million is allocated to projects administered by Denmark.
The Danish Agency for Higher Education and Science is the National Agency and administers the funds.
An internal evaluation by the agency of The European Solidarity Corps (ESC) in Denmark shows that the ESC programme in Denmark has had an influence in several areas: on participating individuals, organisations, and local communities. In the case of Volunteering Projects, the greatest and most evident impact has been on the participants and on those organisations that implemented the projects. In the case of volunteers, the impact has especially been a matter of personal and professional development. In the case of organisations, it has mainly been a case of strengthening employees' skills and promoting an international perspective within the organisation. Moreover, the evaluation suggests that many Volunteering Projects have had an impact both on the target group and on the local communities that host the projects.
One major success of the implementation of the ESC in Denmark is inclusion. The evaluation shows a significant increase in the registered number of participants with fewer opportunities in the evaluated part of the current programme period (2021-2023), though to a lesser degree for young people with functional disabilities.
However, the evaluation suggests that Solidarity Projects and the opportunity for volunteering abroad are not sufficiently known in Denmark, so to fully benefit from its participation, there should be a greater focus on ESC in Denmark.
Horizon Europe in Denmark
Horizon Europe is the EU's key funding programme for research and innovation in the 2021-2027 period. As of March 2022, research institutes, researchers and organisations have received funding worth €1.667 million, which makes up 2,6% of the total Horizon2020 budget.
The Danish Agency for Higher Education and Science is the national contact point (NPC) for Horizon2020 in Denmark.
It is not possible to estimate which share of funds and activities that directly affect young people.
The European Structural Funds In Denmark
The Danish Board of Business Development allocates funding from the European Social Fund to business development all over Denmark. In the 2021-2027 period, the budget amounts to around €120 million. The programme focuses on skills development, education and competency development.
The Danish Board of Business Development also allocates funds from the European Regional Development Fund. In the 2021-2027 period, the budget amounts to around €240 million. The programme focuses on the development of small and medium-sized enterprises and on the implementation of digital solutions strengthening sustainable local development.
Only a few projects have specifically targeted youth. The Future Talent Denmark project addressed the attraction of international students to Danish workplaces after graduation. The remaining youth related projects almost all had the purpose of promoting vocational education.