The government will invest €9 billion in childcare annually, making it near-free by 2029
The Dutch government plans to make childcare almost free by 2029, sending around 9 billion euros annually directly to childcare providers, State Secretary for Social Affairs Jurgen Nobel told the Tweede Kamer.
According to RTL, the reform would replace the current childcare allowance system, which parents use to pay for childcare, with a system in which families pay only a small portion of costs directly. The plan reportedly aims to prevent another childcare allowance scandal, in which thousands of families were wrongly accused of overpayments and forced to repay subsidies.
To prevent excessive state aid, childcare will be designated a “service of general economic interest” (DAEB), similar to the status of housing corporations. This designation will cap allowable profits and executive salaries at the Balkenendenorm, while still permitting providers to earn a reasonable return and invest in growth.
Some childcare operators warned the rules would impose heavy administrative burdens and reduce flexibility. Michiel van Dam, head of Amsterdam-based Woest Zuid, told RTL, “The freedom organizations currently have will be curtailed…It will become a one-size-fits-all system, which may not improve the quality of care.” He also noted that the sector would face challenges in creating the roughly 200,000 new childcare spots needed to meet the demand under a near-free system.
The government plans to release the full legislative proposal next month. Nobel emphasized that the new system is intended to ensure affordability for parents, stabilize funding for providers, and support long-term planning for the sector. While high profits will be limited, providers will still reportedly be able to invest and operate within the new rules.
