News item | 26-04-2023 | 15:57
It has been agreed in the coalition agreement to review the childcare allowance system. The government wants to make the childcare system simpler and more affordable for parents. In the past period it has become increasingly clear that there are serious concerns about rising prices, staff shortages and guaranteeing the quality of childcare in the run-up to the new system. Particularly in view of the lessons learned from the childcare allowance affair, careful implementation of the new system is crucial for the sector, parents and administrators. That is why there will be a solid ‘growth path’ to allow the demand for childcare to grow gradually from 2025, so that the sector can gradually increase the supply and is not surprised by a large sudden increase in the demand for childcare. In this way, the government is working on a careful introduction of the new system in 2027. The government has announced this in a letter to the House of Representatives.
More time needed for careful implementation
Due to the intensive efforts of SZW, co-executors within the greenfieldtrajectory and many sector parties – in recent months there is currently a first draft design for the new childcare financing system. In the future, working parents will receive a reimbursement of 96% (up to the maximum hourly rate) for childcare costs, regardless of their income. This childcare allowance (VKO) will soon be paid directly to the childcare organization instead of to the parent(s).
Major steps have been taken in recent years. At the same time, more time is needed for a careful and gradual introduction of the new system. In addition to concerns about rising prices, staff shortages and guaranteeing the quality of childcare, the implementing bodies have indicated that implementation by 2025 is not possible. It is important that political decision-making continues as planned. The government aims to be able to share the bill for the system reform with the House of Representatives before the summer of 2024.
Minister Van Gennip of Social Affairs and Employment: “We have been working hard over the past period on a first draft design for a new financing system for childcare. The government wants to make the system simpler and more affordable for working parents. I am happy with the big steps we have taken. At the same time, I see the broad concerns in the sector about staff shortages, affordability, accessibility and guaranteeing quality. A gradual expansion of the range is necessary to be able to implement a new system responsibly. I also understand the signal from the implementing organizations that more time is needed. It is precisely with the lessons of the childcare allowance affair in mind that it is important to take a good look at the feasibility and carefulness of policy. In the coming period I will continue to do my best to ensure that the system review is arranged properly and as quickly as possible.”
Investigate private equity in the childcare sector
Minister Van Gennip recently commissioned research into market forces in the childcare sector and the possible effects of market intervention. The two studies do not provide any concrete indications of excess profits or lower quality private equityparties in the current system. At the same time, the studies do show higher prices, higher staff turnover and larger loans private equitysee parties.
With a view to the system reform, the government sees risks in terms of accessibility and continuity based on these studies. In addition, a continuous effort is required to maintain the current high quality in the future. Measures are therefore being explored to ensure that childcare in the Netherlands will continue to be of high quality and accessible to all parents who want to combine work and care for their children. This concerns measures such as tariff regulation, more transparency, an extension of the right of advice for parents and quality monitoring.