Working parents to see highest purchasing power increase this year
This year, working people with children will see their purchasing power increase the most, by around 1.5 to 2.5 percent, the Netherlands' institute for budget information Nibud reported on Thursday based on the latest calculations. Some families my even see their purchasing power rise by up to 4.5 percent, NU.nl reports.
Prices are expected to rise by 1.6 percent in 2020, while wages will increase by 2.8 percent on average. People who work will also benefit from the higher labor discount, and parents will benefit from better child-related benefits.
Non working people, including people on welfare benefits and pensioners with only a state pension or a small pension, will see their purchasing power increase by barely any at all - less than one percent. According to Nibud, this group will have between 10 and 20 euros extra per month.
A number of important policy changes are affecting purchasing power this year. The hard income limit for the rent allowance was scrapped - with an increasing income, the allowance is gradually lowered. This also means that more households can claim that allowance. The energy bill will also be lower for many household this year, due to the reduced energy tax.
Households with children will see a difference due to the child-related budget this year. More people can claim this budget because the income limit has been raised. The rules for the child benefit for older children have also been somewhat relaxed. Nibud advises parents to check their aggregate income of 2018, which the Tax Authority uses to calculate the allowance, to make sure that parents don't have to pay any money back later.