News item | 12-07-2022 | 18:25
For a large group of Dutch people, livelihood security is under pressure. For them, the daily worry to make ends meet, due to insufficient or uncertain income or because they have to deal with problematic debts. This causes stress, health problems, social isolation and shame and puts children at a disadvantage for a long time, often from generation to generation. The government wants to break this vicious circle and use a broad, multi-year approach to better prevent money worries, substantially reduce the number of people in poverty and debt and improve the livelihoods of all Dutch citizens.
The government’s approach to Money Concerns, Poverty and Debt consists of a large number of actions, initiatives and measures in various areas. This also links up with other government programmes, such as the National Liveability and Safety Program (VRO) and the Equal Opportunities Alliance (OCW). In the implementation, the cabinet is working together with municipalities, social organisations, the business community, implementing organisations, the academic world and experts by experience. The concrete targets are a halving – compared to 2015 – in the number of children growing up in poverty by 2025, and a halving of the number of people in poverty and the number of households with problematic debts by 2030.
Minister Carola Schouten: ‘The goals are ambitious. At the same time, the reality is unruly and a larger group of households is in danger of getting into financial difficulties due to the high prices of energy and groceries. The government is fully committed to measures to limit the consequences and is continuing to look for solutions. However, we must also look further and ensure that the number of people in poverty and with problematic debts decreases structurally over time. These plans are the starting point for this.’
Work more rewarding, more attention to financial education
As part of the approach, the government is raising the minimum wage and widening the additional income limits in social assistance benefits, so that work will pay more. People on benefits receive extra help in finding work. Every four years, the cabinet examines whether the social minimum is sufficient to live on and participate in society. We make financial arrangements and facilities simpler and more accessible so that they are better used. The government will actively point this out to people who are entitled to schemes as much as possible. More attention will be paid to financial education of children and young people and the prevention of financial worries during life events, such as a divorce or turning 18. We are expanding child facilities for families with a minimum income, such as sports or music lessons, with activities and internships or traineeships that allow children to strengthen their skills and self-confidence.
Minister Carola Schouten: ‘If people don’t make ends meet, it makes it more difficult for them to fully participate in our society. That concerns all of us. Poverty and debt can really happen to anyone. The Netherlands should be a society in which no one stands on the sidelines. In which we look after each other and have an eye for the problems of the other.’
Poverty often remains hidden, for example out of shame. The cabinet wants to improve the signaling of poverty through, among other things, a broader deployment of bridging officers in schools. They offer a listening ear to parents and are in direct contact with both the school and social workers in the neighbourhood. In more municipalities, local alliances are being formed between public and private parties to combat poverty in families. The cabinet is also taking measures to improve access to oral care for minimum incomes and wants to ensure that more children go to the dentist in neighborhoods where dental visits are low.
Debt on break, better help for entrepreneurs
People often struggle with debt for a long time. This limits them in daily life. The government wants faster and more effective debt counseling, with more restructuring loans, whereby the municipality takes over the debts of other creditors, the option to pause debts and better debt assistance for independent entrepreneurs. Municipalities receive extra resources for this. As much as possible, there will be a single counter for government collection, so that people with multiple debts will have to deal with one bailiff and can make one joint payment arrangement. The government is also making extra money available to municipalities for early identification of debts. They can then provide better assistance to residents to prevent payment arrears from increasing further.
The government is investing in innovative approaches to tackling poverty and debt in twenty vulnerable neighbourhoods. This concerns, for example, projects in which private companies make social investments (social impact bonds) and care providers are allowed to deviate from the rules in the event of an accumulation of problems. We use the knowledge and experience gained to start these approaches in more neighbourhoods.
A government that works for people
With the integrated approach outlined above, the cabinet is working towards a government that offers low-threshold help, stands next to people and gives them confidence. For too long it has been assumed that people understand the rules and therefore follow them. While rules and regulations are often complex and a mistake is made quickly, sometimes resulting in high recoveries and fines. This has damaged trust in the government. The government wants to ensure that people who are in trouble feel seen and heard, know where to go and receive good support, so that they can get on with their lives.