This report concerns financing of unemployment benefits for insured unemployed people. The Danish financing model comprises local government co-financing of unemployment benefits under the Ministry of Employment and the employment subsidy provided to local governments by the Ministry of Economic Affairs and the Interior. The local governments’ expenditure for co-financing of the unemployment benefits is fully reimbursed by the Danish central government through an employment subsidy.
The purpose of the examination was to assess whether the model used for financing unemployment benefits for insured unemployed people functions satisfactorily. The report answers the following questions:
- Does the model of financing and the Ministry of Employment’s performance of its tasks provide a sound basis for managing co-financing transactions between central government and local governments?
- Does the model of financing have inappropriate consequences for the government’s and local governments’ execution of budgets, follow-up and control in relation to financing unemployment benefits for insured unemployed people?
Rigsrevisionen initiated the study in November 2013.
Read the 1st chapter of the report (PDF)