Cities call for more comprehensive plan in compensating child benefits scandal victims

Municipalities want the Tweede Kamer to oppose the Cabinet's new regulations surrounding the compensation of the victims of the child benefits scandal, the Dutch Municipality Union (VNG) wrote in a letter to the Tweede Kamer.

The VNG feared that they will be left alone in regulating the compensation for the thousands of victims of the child benefits scandal who Tax Authorities wrongly accused of being fraudsters, Trouw reported. Victims of the scandal had to repay Tax Authorities thousands of euros in child benefits. This drove many parents to financial ruin, separated thousands of families and caused several victims psychological problems.

The Cabinet's measures "do more harm than good," the VNG said, meaning that the new plans will further delay payment to duped parents.

The municipalities said duped parents rightfully demand answers but they are unable to respond. "Tens of thousands of parents are waiting on an integral judgment with no perspective on how long they still have to wait," the VNG wrote.

The Cabinet announced on Friday they will release 1.3 billion euros to compensate children and the former partners of victims in the scandal surrounding the childcare subsidy program. Parents are each eligible for 30 thousand euros in compensation. Yet, when many of the victims will receive their compensation is unknown.

The municipalities cannot respond to the parents' questions because the Tax Authorities themselves do not yet know the answer. "Our employees are frustrated because the Tax Authorities do not have it together," the VNG said.

The people who suffered the most damage have to wait to longest, the  VNG pointed out. "People with little damage get a quick compensation and are sometimes overcompensated. But the people who were evicted and worse, have no idea when they will be helped," the VNG wrote.

The Council of State and the National Ombudsman have already voiced their disapproval of the Cabinet's approach.