Parents will pay a slightly higher contribution for childcare from 2029 than previously planned. The government has decided to reimburse 95.6 per cent of childcare costs rather than the previously announced 96 per cent, citing higher-than-expected administrative and oversight costs for the new system.
The proposed system will replace the current childcare allowance (kinderopvangtoeslag) framework. At present, parents pay childcare providers directly and receive a monthly income-dependent allowance. The new model will cost roughly 60 million euros more per year than the current setup. In an annex to a letter sent to the House of Representatives, officials noted that the childcare sector has not yet been formally informed of the lower reimbursement rate.
Successive cabinets have aimed to make childcare virtually free in order to encourage parents to work more hours. Until the new system takes effect, parents will receive a slightly higher allowance each year. The allowance amount remains tied to household income, meaning higher-earning parents pay a larger share themselves.
While the allowance will increase next year, the rise will be smaller than originally intended. Parents earning under 72,000 euros annually will receive the maximum subsidy rate. However, the Ministry of Social Affairs’ budget for this measure has been cut by 350 million euros. A parliamentary debate on the ministry’s budget is scheduled for later this year, though the plans currently lack majority support in the House of Representatives.
The draft legislation setting out the new financing model is now complete. It will be submitted to the Council of State for legal review before going to the House of Representatives and the Senate for approval.
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