News item | 08-12-2023 | 2:00 PM
The government wants to simplify the income support system in order to improve people’s social security and (labor) participation. The current system has become very complex for many people who depend on it, writes Minister Schouten for Poverty Policy, Participation and Pensions together with other involved ministers in a letter to the House of Representatives. With the Simplifying Income Support for People (VIM) program, the government is exploring further simplifications for the short, medium and long term – in addition to current efforts in this area.
Due to the many regulations, different providers and complicated conditions, people are uncertain about their rights, obligations and their income. As a result, they do not use schemes and are faced with chargebacks and debts. They also do not always dare to take the step towards (more) work. To improve this situation, the government first wants to develop solutions for a number of urgent bottlenecks. They touch on multiple domains and can provide a solution for a large group of people. The bottlenecks arise from discussions with implementing organizations, local governments and public and social organizations, such as the National Ombudsman and the National Client Council.
Stacking of arrangements
This concerns, for example, people with disabilities who spend a lot of money on things such as healthcare, housing and transport. In combination with a low income and complicated arrangements, they can now end up below the subsistence minimum. Another bottleneck concerns situations in which people have to repay too much benefit received. If this happens in two tax years, it can lead to problems. This is because benefit amounts are reclaimed gross, while people receive these amounts net.
Households are also sometimes faced with an accumulation of schemes from UWV and the municipality to supplement their income. This leads to additional complexity and possibly non-use. In addition, there are bottlenecks regarding the remuneration of volunteer work and, for example, if people have to pay back allowances when they accept work. This can mean that they do not dare to take the step of starting work while receiving benefits.
Scenarios for the next cabinet
In addition to these short-term actions, the government is also taking steps to achieve a more understandable and simpler future income support system. The VIM program develops a plan for this with scenarios and various fundamental and realistic solutions. It looks at existing studies, ongoing simplification processes and good examples in other countries. It also involves insights from scientists and cross-thinkers from society. It is up to the next government to consider and implement these scenarios and solutions.