Money worries among North Hollanders, solution seems far away: “We don’t have an emergency brake to pull”

In recent months, NH Nieuws, together with Kieskompas, has conducted large-scale research into topics that are currently on the agenda among North Hollanders. More than forty percent of the North Hollanders indicate that they are concerned about their finances, both for themselves and for others. In particular, North Hollanders between the ages of 18 and 34 and residents with a lower education view the affordability of life as one of the most important themes at the moment.

“As is the case for many, our energy costs have also risen sharply. Fortunately, we can (still) afford it, but there are many others who cannot and that is unacceptable. This also applies to groceries”, is one of the responses from the survey.

Money worries and bad night’s sleep

According to Anna Custers, professor of Poverty Interventions at the Amsterdam University of Applied Sciences, almost everyone’s wallet is currently being hit. From low to middle incomes. But, according to Custers, that is not the only thing: “Money worries create more uncertainty, tensions within the family and a worse night’s sleep. It has more social impact than just the household book.” According to the poverty expert, the cause of inflation is currently due to the increased energy prices, which are having an impact on all kinds of areas. “This makes both food and childcare more expensive.”

Energy surcharge

But it is not only price increases that cause people (further) financial problems. Karin Radstaak, spokesperson for Nibud, explains that the inaccessibility of allowance schemes also plays a role. “Although most people who are entitled to an energy allowance have already applied for it, there are still hundreds of households that have not yet done so.”

According to her, applying for allowances is currently too complicated. “The tax and benefits structure must become more transparent, clearer and simpler,” someone from the study also responds. Another proposes a new system: “Introduce basic income. Life must become affordable again for the minimum income.”

For many people, the future is currently uncertain, both experts conclude. Basic services are under pressure. Not only the prices for gas and electricity, groceries are also more expensive. “It is therefore important to make healthy products cheaper and less healthy products more expensive,” says Radstaak. Our research shows that almost 90 percent of the people of North Holland agree. Even if unhealthier products become more expensive as a result. “A healthy lifestyle is not feasible for a single parent with a son and daughter who are studying,” someone responds.

“There are a lot of people who can get by with little money. That is very clever, but it stops at some point,” says Radstaak. The financial support that is coming from the government is therefore very welcome, she says. Custers also agrees. Only the way in which she thinks may not be the right one. It lacks customization. “At the moment, fixed amounts are donated, but there is a lot of difference between families. One needs it just a little bit more than the other.”

Prices remain high

Moreover, government intervention alone is not enough, she adds. “The current question is: to what extent can the government continue to compensate? Inflation now seems to have leveled off somewhat and everyone hopes it will fall back next year, but energy prices are expected to remain high. Certainly twice as much as before the crisis.” According to the expert, it is therefore important to think about a structural innovation within the economy in which the Netherlands becomes less dependent on gas, for example.

According to Radstaak, it is important that municipalities in particular continue to play an active role in the early identification of poverty. “People themselves often ask for help too late because of a sense of shame.” Many municipalities are already doing this well, she says. “You have to look at what helps people the most. And support if someone cannot pay the rent, instead of evicting someone at a later stage. At the end of the line, the former yields much more from a social point of view.”

According to Custers, a real solution is still a long way off. “The problem is that part of the inflation is driven by external conditions and imported from elsewhere in the world, so to speak.” The (local) government is therefore limited in what they can do about the current financial situation, she concludes. “We don’t have an emergency brake to pull.”