The Cabinet wants to cut back on child support, because more money needs to be paid to executive organizations. It does not want to index family allowances in 2022 and 2023 and less by 2024. Instead, the government wants to invest an extra 100 million euros in the Implementation Institute Employees Insurance (UWV) and the Sociale Verzekeringsbank (SVB).
The plan has been submitted by Secretary of State Van‘t Wout for Social Affairs. After the fall of the cabinet and the resignation of Minister Wiebes, Van’t Wout is now Minister of Economic Affairs.
Income effects small
Since the effects of the intervention on incomes are relatively small, it considers the measure acceptable. By not adjusting family allowances to inflation, the amounts will not change between January 2022 and December 2023. And as it looks, there will be an increase of 0.69 percent in 2024.
As a rule, family allowances are adjusted twice a year to the rising cost of living. The amounts for child benefit now range from EUR 223 to EUR 319 per quarter per child, depending on the age of the child. The indexation on 1 January this year meant an average increase of around 2.50 euros per quarter,
The 100 million for the UVW and the SVB is intended to improve the services provided by these authorities. Because, according to Van‘t Wout, the quality of this is a factor in the confidence in the government. Part of the extra money is intended for the modernization of ICT.
Van t Wout’s proposal is now in internet consumption: that means that people can respond to it.