Netherlands will increase childcare costs for low-income families
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Families with low incomes in the Netherlands will pay slightly more for childcare under a new system planned for 2029, despite government goals to make care more affordable.
The current system offers reimbursement rates of 36.5 percent for high earners and 96 percent for low earners. The new plan proposes a single reimbursement rate of 95.6 percent for all families.
The Ministry of Social Affairs estimates this change will result in an additional 120 euros per year in childcare costs for low-income families with two children attending care for two days a week. The government intends to send payments directly to childcare providers, requiring parents to make only a small contribution, to avoid large reimbursement demands. Middle and high-income families will receive substantially increased subsidies.
The Ministry sent the proposed law to the Council of State for advice, and both the First and Second Chambers of Parliament still need to approve the plan. The government increased subsidies in recent years to prepare the childcare sector for increased demand, but is currently spending 350 million euros less than originally planned on the program.
