Cabinet designs new childcare system with four executives | News item

News item | 07-10-2022 | 15:30

Minister Van Gennip of Social Affairs and Employment will work together with DUO, Allowances, UWV and SVB to design and build a new system for financing childcare. In this way, lessons can be learned from each other and justice can be done to the importance of the feasibility of the new system. The minister – together with the Ministers Dijkgraaf of Education, Culture and Science and Wiersma for Primary and Secondary Education and State Secretary De Vries (Supplementary Benefits) – writes this in a letter to the House of Representatives. Throughout the entire process, there is close collaboration with stakeholders such as sector organisations, trade unions, parent representatives and the VNG.

Van Gennip: “The childcare sector is essential for our society. It offers parents space to work and gives children a safe place to start their development. I am pleased that we can work in an innovative way, together with the expertise of various implementing organizations, on a good and new childcare system. We see this greenfield approach as a strong way to leverage the expertise and experience of the different organizations. The system makes it easier for parents to pay for childcare and contributes to greater equality of opportunity for Dutch children. The government contribution of 96% also ensures that parents have more left over from their income”.

The government wants to make the system simpler and more affordable for parents. In the new system, the government allowance, of 96% for working parents, is therefore paid directly to childcare organisations. In this way, parents are not faced with unexpected (high) recoveries and they can better combine work and care for their child(ren).

Important issues

In the new system, 96% of the maximum hourly rate for childcare is reimbursed, regardless of income. The possible consequences of this higher reimbursement for childcare rates are being closely monitored. Accessibility of childcare is an important point of attention in the new childcare system. Partly for this reason, research has been started into the various forms of financing in childcare, such as private equity. Based on the outcome, measures can be taken if necessary.

The system reform will probably lead to more demand for childcare. This while the sector is currently struggling with significant staff shortages. Minister Van Gennip – together with the childcare sector – already presented measures to tackle the staff shortages. In addition, research has been conducted into the development of the demand for personnel, the supply of personnel and the labor market balance in the coming period up to and including 2031.

System review progress

The new system is to enter into force on 1 January 2025. That is an ambitious plan. Work will continue until July 2023 on the design of the new system. The system will actually be built from July 2023. On the basis of all insights, it is then jointly decided by which organization the new system will be implemented.

ttn-17