Gov't to increase childcare allowance again to compensate rising costs

Working parents will get a little more compensation next year for the rising childcare rates. Parliament broadly supported a GroenLinks and PvdA, asking that the childcare allowance be increased even more. The government already said it was willing to implement the measure, which will cost an additional 45 million euros.

When determining the maximum hourly rates parents can get from the childcare allowance, the Cabinet based its calculations on outdated inflation figures. As a result, the planned allowance increase was quickly outpaced by the actual costs facing parents.

Childcare, therefore, threatened to become unaffordable for some parents. The left-wing opposition parties worried that people would work less so that they could keep their kids at home. And that would only exacerbate the dire staff shortages in many sectors.

Earlier this week, the Cabinet already announced it would release 57 million euros to increase the allowance more than planned. But the left-wing parties felt that did not go far enough. This additional increase is “an important step to keep 2023 affordable for families with children,” said GroenLinks leader Jesse Klaver.