Dutch gov't to punish mistakes with benefits, allowances less harshly

Outgoing Minister of Social Affairs Eddy van Hijum has submitted a bill to parliament, which will result in people being punished less severely for errors regarding applications for benefits or allowances, RTL Nieuws has reported. The penalty for small violations will drop to 5 percent of the fee received, with large violations resulting in people paying 15 percent on top of the fee received. This is a significant drop compared to the current rate of 50 percent of the fee.

Another change to the system is that the government will now only be able to reclaim the money that the person in question has received within the last five years, as opposed to the current situation, in which the government can reclaim any money received within the last 20 years.

Van Hijum’s party, the NSC, was founded to prevent another incident like the benefits scandal, which involved thousands of families, many with immigrant backgrounds, being wrongly accused of fraud by the tax authorities. This led to severe financial and personal hardship for many due to unjustified demands for repayment. This bill is another move meant to reduce the chances of this re-occurring.

“People sometimes get lost in the incredibly complex social security system we have. And the rules are extremely harsh. People are automatically given fines and face large repayments. What we want is a more humane, simpler social security system in which people also have the right to make a mistake,” Van Hijum said about the legislative proposal.

The bill also stipulates that people will no longer automatically receive a fine if they make a mistake when applying for benefits or allowances. Implementing agencies like the UWV and municipalities can first issue a warning and reach out personally to see if someone needs assistance. If money needs to be reclaimed, the agencies can decide whether a fine is truly necessary.

The proposed changes are scheduled to take effect in January 2027.