Omtzigt: Failure to adjust child support to inflation affects lowest incomes

According to MP Omtzigt, the envisaged cut in child support leads to increased poverty among families who are not already broad. Therefore, the plan should be off the table, he thinks.

The cabinet wants to save on child support by not indexing the amount in 2022 and 2023 and less by 2024. Indexing means adjusting to inflation (price increases). The plan assumes 1.4 percent inflation. But it seems to be higher; at the moment inflation is already at 2.7 percent.

According to the government, the measure must raise EUR 100 million to improve, among other things, the information and communication systems of the UWV and the Social Insurance Bank. According to Omtzigt, the 100 million with current inflation is already reached after 1 year, so it is unnecessary not to index 2.5 years.

Just a Bad Idea

In addition, the Member States that the envisaged measure would result in half a percent loss of purchasing power for low-income people. Lower-income people are hit relatively hardest by the cut – because child support is a flat rate per quarter.

โ€œThe Netherlands has a relatively high level of poverty among families with children, because we have very scant child schemes,โ€ says Omtzigt. โ€œThats why the child support cut is just a bad idea.โ€

Normally, child support is adjusted twice a year to meet the rising cost of living. Child support amounts now range from 225 to 321 euros per quarter, depending on the age of the child.

Omtzigt thinks that the plan should be off the table, but if it is implemented, then in toned form. According to the Member of Parliament, indexing should be restarted once the amount of EUR 100 million is in. Next Wednesday, the plan will be discussed in the House of Representatives.