Low-income households lose €300 in benefits monthly due to administrative maze
Thousands of low-income households in the Netherlands are missing out on an average of 300 euros per month in available financial support due to a complicated and confusing system of benefits and allowances, according to data from the nonprofit Geldfit. The organization’s Potjes-check, an online tool designed to map out local and national entitlements, has been used nearly 350,000 times in the past 18 months. Users typically qualify for about 300 euros in additional monthly assistance they had not claimed, a spokesperson for Geldfit told NU.nl.
The Potjes-check tool highlights a range of benefits including healthcare allowances, child-related budgets, special welfare aid, and funding from various local and national funds. The healthcare allowance and child-related budget are the most commonly identified benefits through the tool. Other frequently overlooked sources of support include special welfare aid and contributions from the Youth Fund for Sports and Culture, which funds children’s participation in sports and cultural activities. Geldfit emphasizes the importance of these funds, noting that "money for sports and culture can significantly improve the quality of life for people struggling with financial worries."
The available allowances can add up to thousands of euros annually for eligible households. For example, the maximum healthcare allowance reaches 250 euros per month for two-person households earning up to 28,000 euros annually. The amount for the child-related budget varies based on the child’s age and can exceed 200 euros monthly.
Despite these benefits, many low-income individuals and families do not apply. The spokesperson for Geldfit explained that shame and guilt often prevent people from seeking assistance, combined with a fear of making mistakes in the application process. "The consequences are not always clear when you apply for something," the spokesperson said.
The complexity of the system has drawn significant criticism in recent years. The coalition agreement notes, "There are too many schemes with complicated calculations," which can sometimes lead to financial insecurity rather than alleviating it. Previous research by the Central Planning Bureau (CPB) confirms that many workers and self-employed individuals forgo claiming allowances due to these difficulties.
One major deterrent is the requirement for applicants to predict their future income and circumstances accurately. The current system obliges applicants to estimate their income for the upcoming period, which can be difficult and risky, especially since the tax authority can demand large repayments if benefits were overpaid. The system’s advantage, however, is that allowances can be received immediately in months when income falls short.
A spokesperson for the Ministry of Finance explained, "The Tax Authorities cannot estimate a person’s income and living situation themselves; people themselves know best what their expected circumstances are." The only exception is the child-related budget, which is automatically granted to households already receiving another allowance.
The Dutch government is reportedly working on legislation that would enable authorities to proactively identify and contact citizens entitled to benefits or social provisions. This approach is currently restricted by privacy regulations. The draft bill is currently under review by the Council of State.
Geldfit’s Potjes-check, which has been available online for a year and a half, has been completed nearly 350,000 times. The reported average of 300 euros in potential monthly benefits excludes outliers to avoid distorting the data. While users can complete the tool independently, many receive assistance from volunteers and social workers when seeking help for financial difficulties.
