New coalition lacks concrete policy for improving social security or tackling poverty

The monetary policies outlined in the coalition agreement between the PVV, VVD, NSC and BBB are primarily short term and incidental, and lack a structural approach to social security, according to Nibud. The Dutch budget institute released its analysis of the coalition deal on Friday, less than a week before the new Cabinet is expected to take office.

The four political parties have thus far missed the mark when it comes to finding structural solutions to reduce household dependency on national and local regulations and programs, Nibud said. This despite the fact that the agency found many opportunities for the coalition to develop future-proof policies.

Reducing the health insurance deductible is one of the coalition's policies that seems nice on the surface. However, this will lead to a higher monthly health insurance premium, Nibud said. As a result, the financial effect will only be limited on balance.

Additionally, the coalition has proposed introducing an additional income tax brackets. But households with a low income will not benefit from this.

Measures for low income households regarding the energy transition are also lacking, the organization stated. Nibud also said there was not enough attention to reducing poverty and reliance on social benefits for people in the Caribbean Netherlands.

Nibud called on the new Cabinet members to investigate everything carefully, and to come up with more detailed policies that do justice to the term "social security." This can be accomplished in a few ways.

"It would therefore be great if this Cabinet starts reducing dependence on benefits, simplifies the benefits system and provides a solid basis for income support. In this way, social security actually receives the structural approach that is necessary," Nibud said.