News item | 17-10-2025 | 18:49
Childcare will be almost free for working parents from 2029. State Secretary Nobel (Participation and Integration) and State Secretary Palmen (Recovery and Benefits) have opened the bill for internet consultation, so that everyone can respond to the plans. The new financing system is simple and offers parents certainty about the costs of childcare. Because the childcare allowance will disappear, parents will no longer be in trouble due to high recoveries.
State Secretary Nobel: “Working parents must notice that an extra day of work really pays off. No more reimbursement of allowances and secure and affordable childcare. We will arrange that with this proposal. So that working parents can confidently take their child to good childcare and have peace of mind about the costs.”
State Secretary Palmen: “It is good that in the new system the compensation is no longer paid to the parent, but directly to the childcare organizations. This ensures peace and simplicity because parents no longer run a financial risk.”
Almost free childcare
In the coming years, the government will continue to increase childcare allowance, so that childcare will become almost free for everyone by 2029. This means that an extra day of work no longer leads to less allowance, which means that working will pay more. In addition, the childcare system itself is being overhauled to ensure a simpler and more secure system for working parents.
Financial security
In the current system, parents receive an advance. Sometimes they have to (unexpectedly) pay back large amounts of benefits. In the new system, the government pays the compensation directly to the childcare provider. Parents no longer have to apply for benefits and will no longer receive uncertain advances into their bank account. The government also no longer reclaims amounts from working parents afterwards. This gives them much more financial security. The compensation will be income-independent. Everyone is entitled to the maximum reimbursement percentage of 96%. This makes it worthwhile for parents to work more hours.
For childcare organizations, the new system offers the guarantee of stable financing. The contribution that the government pays to affordable childcare will increase significantly in the new system, to approximately € 9 billion per year. The Benefits Service is the intended implementation organization that will implement the new plans.
Gradual transition
To get the market used to the increased demand, the government is gradually increasing the childcare allowance. The government also supports the sector in tackling staff shortages, for example by recruiting group assistants who can grow into pedagogical employees. For childcare organizations, the new system must be simple, with as little administrative burden as possible. The government will provide additional support to smaller organizations in the transition to the new system.
Efficient use of government resources
The government is investing significantly more in childcare in the new system. The government is imposing a number of additional conditions on the expenditure of this tax money. One of them is to designate childcare as a service of general economic interest (SGEI). This ensures that this tax money benefits working parents, for example by (re)investing it in quality and supply in the sector. In addition, the SGEI guarantees that the new system is compatible with European state aid rules. This prevents the risk that the entire subsidy will have to be recovered from childcare organizations. Another condition set by the government is that salaries must be appropriate to the social character of the sector. That is why the government places the childcare sector under the Top Income Standards Act.
The government’s starting point is that childcare remains attractive for entrepreneurs. They must retain the freedom to do business and invest in good quality childcare. The government will continue to actively involve the childcare sector in the further elaboration, so that the SGEI fits the sector as best as possible and does not create unnecessary administrative pressure. Childminders in childcare are also exempt from these regulations.