Ukrainian refugees cost the municipalities more than expected

The municipalities are currently not sufficiently compensated for the expenses they have for settlement and integration, according to the municipal organization KS.

– It is absolutely necessary to cover the additional costs if we are to manage this effort together, says chairman Gunn Marit Helgesen to NTB.

It has been investigated whether there is a reasonable difference between the municipalities’ actual expenditure and the government subsidies.

For Norwegian education last year, the municipalities had to cover almost 20 per cent of the expenses themselves. They also covered 8 percent of the costs of the integration grant. This is shown by a survey the calculation committee has made of the municipalities’ expenses for 2023.

Warns of slower settlement

KS has sent the government a letter requesting that the supplements be lifted. While the government is gathered for a budget conference to put this year’s state budget in place, KS is now repeating the request. Prime Minister Jonas Gahr Støre (Ap) stressed on Tuesday that the upcoming budget will be characterized by tighter priorities because the government must invest in the areas of defence, justice and health.

It may be slower to settle the refugees if the municipalities are still responsible for such a large part of the expenses, Helgesen fears.

– There is a great willingness to contribute, but we see that three out of four municipalities have an excess consumption, she says.

The integration grant will help to cover the municipality’s reasonable coverage of expenses for settlement and integration in the first year refugees are settled, as well as the following four years.

Expenditures for health services and social assistance

The Ukrainians turned out to be more costly to receive than first thought, points out the KS chief. They did not speak English as well as one had assumed and many need more language training than was initially planned.

More than expected have a need for municipal services in health and care. There are also a number of other integration measures that cost money – for example, advice and guidance, extra measures in school and kindergarten and interpretation services. Housing expenses and social assistance are other areas where you see the biggest increase in expenses.

In contrast to previous years, no price adjustment of the integration grant was made in 2024, according to KS.

– It is absolutely necessary that the government in the state budget for 2025 come up with a significant increase in the integration grant, the municipal organization demands.

Altogether, close to 70,000 Ukrainians have settled in Norwegian municipalities since the Russian full-scale war started in 2022. This year, only 15,000 have settled, while the government had requested that almost twice as many should be settled, a total of 29,000.