Youth care doing better financially, but still vulnerable: Regulator
The financial situation of Dutch youth care organizations has improved, with higher average profits and fewer institutions operating at a loss, according to the national regulator, the Jeugdautoriteit. However, the regulator warned the sector remains vulnerable to setbacks that could disrupt care for children and young people.
Smaller youth care organizations generally show stronger financial results than larger ones, largely because they provide care at home, keeping fixed costs lower. Overall, the share of organizations running a loss has declined from around 20 percent in 2022 to 11 percent in 2024. Most of these losses are occasional rather than annual, often caused by factors such as staff illness.
Annemiek van der Laan, director of the Jeugdautoriteit, told NOS that the sector’s improvement is encouraging but fragile. “We see a slight improvement in the financial position of institutions,” she said. “But we also see that it is unstable. If there are a few significant setbacks, it can have a large impact on the budget. That makes these institutions—and therefore the care they provide—vulnerable.”
The financial gains are partly due to higher reimbursement rates, with organizations receiving more funding for care services, often from municipalities.
Special attention is reportedly being given to closed youth care facilities, where young people cannot leave the premises freely. These institutions had previously caused harm for many youths and have been phased out. Losses were common in the sector during this transition. A new government funding injection in 2024 has restored average profitability, but the Jeugdautoriteit said it remains uncertain whether the funding will be sufficient to complete the phase-out effectively.
Municipal spending on youth care has been rising steadily. While municipalities are responsible for delivering quality care, many have struggled to control costs. Spending is expected to reach a record 10 billion euros per year within three years.
The regulator also warned that youths with problems that are assumed to be "milder" are using youth care services too frequently, driving up costs and lengthening waiting lists.
