Cabinet does not compensate for higher childcare costs

The government will not compensate the higher personal contribution for childcare in 2023. The Ministry of Social Affairs and Employment confirmed this on Monday NRC after previous reporting RTL News. The ministry says that the high inflation can no longer be included in the calculation of the childcare allowance.

To calculate the childcare allowance in 2023, the ministry used figures from March 2022, when the Central Planning Bureau (CPB) estimated inflation for 2022 at 5.2 percent. That turned out to be too low. Actual inflation is expected to exceed 10 percent in 2022, with childcare allowance lagging behind. The rates in childcare are expected to rise relatively more, partly due to higher costs for energy and personnel.

The amount of the allowances can no longer be adjusted to the current expected inflation, according to the ministry. The first payments for January will already be made this month, and the systems of the Tax and Customs Administration’s Benefits department are not set up to make adjustments for next year.

Minister Karin van Gennip (Social Affairs and Employment, CDA) said in a committee debate on childcare on November 16 that she will “take a serious look” at reindexing from 2024. This will be preceded by a study into the rising costs and profits in the childcare sector , says a spokesman for the ministry. There will also be no other forms of compensation for the time being.

ttn-32