News item | 19-09-2023 | 15:35
The government is taking additional measures to improve the purchasing power of people with a low (middle) income or benefits, and large families. That is why the government will invest €2 billion in structural measures next year to ensure that everyone can participate in society and to prevent poverty from rising. This is what Ministers Van Gennip (Social Affairs and Employment) and Schouten (Poverty Policy, Participation and Pensions) write in their budget that was presented to the House of Representatives today.
In the Netherlands you should be able to make a decent living. This is under pressure, partly as a result of the war in Ukraine. Groceries and (energy) bills have become more expensive and prices are expected to remain high. This causes stress and financial worries, especially if you have a low income, receive benefits or have a large family. The government feels a great responsibility to take measures for greater social security, despite the outgoing status.
Subsistence security
In the 2024 Budget Memorandum, the government is structurally releasing an additional €2 billion per year to improve the purchasing power of families and people with a low (middle) income. For example, the rental allowance will be increased by a maximum of €416 per year. The child budget will increase. For the first child with a maximum of €750 per year, for the second child with a maximum of €883 and a maximum of €400 for children between 12 and 17 years. This ensures that large families and families with older children can make ends meet better.
Furthermore, benefits will increase at the same rate as the minimum wage, because the double tax credit in social assistance will not be phased out in 2024. The Temporary Energy Emergency Fund will be opened again this winter, which will reimburse part of the energy bill of people with high costs and a low income. Schools with many vulnerable children can continue to offer free school meals next year, so that children do not sit in class on an empty stomach.
As a result of these measures, purchasing power will increase for most people next year. The average Dutch person will improve by 1.7%. The number of Dutch people living in poverty is expected to remain the same next year at 4.8% of the population, 1.3 percentage points lower than at the start of the cabinet. The number of children growing up in poverty drops to 5.1%. That is 2.1 percentage points less than at the start of the cabinet.
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Job market
Work should provide wages and security so you can plan for the future. Working people with low or middle incomes will pay less tax: the employment tax credit will increase. In addition, the government is continuing to work on reforms in the labor market so that workers receive a permanent contract more quickly and know where they stand in terms of schedule and income. Tackling abuses among migrant workers will also continue unabated.
The government continues to consider it important that people continue to develop during their careers. The SLIM scheme, a subsidy aimed at encouraging learning and development in SMEs, will receive additional resources and will be adjusted. For the period from 2024 to 2027, an amount of €73.5 million will be made available to promote individual training for citizens.
Participate in society
In the Netherlands you should be able to make a decent living, even when things are not going well. But sometimes people still find themselves in trouble, for example due to complex government regulations. The approximately 6,500 households that unintentionally have an income lower than the social assistance level will receive compensation through their municipality in the coming years. The scheme requires a change in the law. This is a temporary scheme for the period 2024-2027, in anticipation of a structural solution that is planned from 2028. The government has reserved an amount of €89 million for this temporary scheme. The compensation that households will receive does not count towards the aggregate income and therefore has no consequences for the amount of allowances to be received. In the meantime, the government is continuing to work on simplifying regulations and tackling obstacles in legislation.
The government is also canceling the reduction in the young disabled person’s discount. In addition, it invests in sheltered workplaces for people who cannot work for a regular employer. Municipalities and social development companies play an important role in guiding and involving people with disabilities. The government has structurally made more than €64 million extra available to finance sheltered work. A budget of more than €63 million has been reserved in the 2024 budget for the infrastructure of social development companies. From 2026 to 2029, €88.9 million will also be made available for the education route, so that newcomers can more easily progress to an MBO level 2, 3 and 4, HBO or university course. This increases the chance of a good job for immigrants.
Caribbean Netherlands
The government is also interested in improving purchasing power and reducing poverty in the Caribbean Netherlands. It will allocate €30 million for this next year. From 2025, this amount will be structurally increased to €32 million annually. To support families, the government will increase child benefit by $90 per month per child from 2024. This is in line with the ambition to halve child poverty by 2025. In addition, the government will increase the minimum benefits to the social minimum benchmark as of October 1. From 2024, the minimum wage and minimum benefits will be further increased, the precise increase is yet to be determined. With this, the government is taking important steps to achieve a social minimum on Bonaire, Saba and Sint Eustatius.