The minority cabinet has largely abandoned its planned cuts to social security. Proposed reductions to benefits have been scrapped, and plans to accelerate the increase in the state pension age have also been dropped. Several other measures, including halving the duration of unemployment benefits, have been postponed by one year.
Sources in The Hague confirmed the changes after RTL Nieuws first reported them.
By cancelling or delaying the measures, the minority coalition hopes to secure support from PRO in particular. Since the cabinet took office, the largest opposition party in both the House of Representatives and the Senate has worked closely with trade unions in opposing the planned changes to social security.
Under next year’s budget, which coalition parties agreed on Monday after lengthy and difficult negotiations, the cabinet has set aside an additional €1.5 billion to support household purchasing power.
The cabinet will also allocate €400 million for shingles vaccinations, a long-standing priority for 50PLUS. In addition, the discount on fuel excise duty will be phased out more gradually, for €750 million. The planned €60 increase in the healthcare deductible will also be postponed by a year.
People on higher incomes will help fund part of the package through higher taxes. The measure is expected to raise around €750 million.
The levy on tap water will also increase by ten cents per 1,000 litres for all consumers.
Not all of the additional spending has yet been fully financed. The cabinet wants to hear proposals from both opposition parties and trade unions on how the remaining costs should be covered.
@anp | NEWS BRAINPORT
