Advisory body very critical of plan for nearly free childcare for working parents

The Advisory Body for Regulatory Burden Assessment has urged the Government not to go through with its plan to make childcare almost free for working parents. The new childcare system, set to be implemented in 2029, has too many pitfalls and would increase the pressure on the already overburdened childcare sector significantly. That could cause major problems, said the body that advises the Cabinet on the feasibility of legislative proposals, RTL Nieuws reports.

By making childcare and after-school care almost free for working parents, the government hopes that more parents will return to the workforce or work more hours, thereby addressing the labor shortage in the Netherlands. The new system will also eliminate the current childcare allowance, a complicated tax benefit that formed the basis of the benefits scandal. The Tax Authority still regularly has to reclaim large amounts from parents.

But according to the Advisory Body, the new system holds too many pitfalls. The biggest issue is that it will lead to a significant demand for childcare. “The sector is already struggling with staff shortages. These will only worsen. That’s a recipe for further disappointment,” said chairwoman Marijke van Hees. The childcare sector currently has 6,000 unfilled full-time vacancies. Under the new system, this will increase by a further 20 percent.

The advisory body, therefore, urged the Cabinet not to implement the new system in its current form. That is the worst possible rating the advisory body can give a bill.

The advisory board is not alone in its concerns. Previous studies by the Netherlands Bureau for Economic Policy Analysis (CPB) and the Netherlands Institute for Social Research (SCP) also concluded that the new system will lead to longer waiting lists, higher costs, and increased workloads. The agencies also raised doubts about whether the new system will actually lead to parents working more.

Despite the negative advice, there is broad support in parliament, from left to right, for making childcare almost or completely free. Though parliamentarians are also concerned about the consequences of a new system.

“We support almost free childcare, but we do believe that its feasibility must be carefully examined,” CDA parliamentarian Judith Bühler told RTL Nieuws. “The State Secretary indicates that he wants to solve the problems as they come up, while he’s already implementing this new system. I find that quite stressful. Because it’s an illusion to think you can just pull the wool over people’s eyes.”

GroenLinks-PvdA also supports accessible childcare, wanting to make it completely free for all parents. According to MP Marjolein Moorman, you can find other solutions to staff shortages in childcare. “For example, extend parental leave. We see that childcare for those very young babies is very intensive, which requires a lot of staff. So if you extend parental leave, it’s good for parents, for children, and it also solves staffing problems.”