People over 55 hit hardest by new Cabinet’s budget cuts
The plans in the D66, VVD, and CDA coalition agreement disproportionately affect people over the age of 55, two experts told the Telegraaf. Older workers will be hit hardest by cuts to unemployment (WW) and disability (WIA) benefits, while retirees will be most affected by healthcare cuts. A third expert added that the budget cuts also hit young people - everyone is affected.
“There are relatively many older people, and more are on the way. So that’s where the greatest gains can be made from cuts,” Paul de Beer, an emeritus professor of labor relations at the University of Amsterdam, told the Telegraaf. That is reflected in the coalition agreement, he said. “Many measures affect older people more than younger people. The coalition agreement isn’t evenly distributed across the generations.”
Professor Anet de Lange, an expert in sustainable employability working for the consultancy firm Berenschot, agrees that many measures in the coalition agreement will be detrimental to older people. “The nuance is that these measures aren’t necessarily intended that way. Many plans in the agreement aren’t meant to hinder the over-55s. But it is indeed true that the effects are not age-neutral.”
According to De Beer, the increase in the state pension age won’t affect older workers that much. That effect is most noticeable for younger people and people in their forties. But cuts to the WW and WIA will primarily affect employees over 55.
The new government plans to reduce the duration of the WW benefit from two to one year, for example. “If you lose your job as an older worker, you are more likely to remain unemployed for more than a year,” De Beer said. “In many cases, you won’t be eligible for social assistance after receiving unemployment benefits, because if your partner works, you’re not entitled to them.”
De Lange said that cuts to WW and WIA apply to everyone, but older Dutch people will suffer more from these cuts than younger people. Despite the tight labor market, older unemployed people are struggling to find work. “Research shows that the image of older workers is unfortunately still negative. My call is therefore to really start working on supporting this vulnerable group back into employment.”
When it comes to the healthcare cuts, De Beer pointed out that people with lower education or lower incomes are, on average, more likely to experience health problems. “The differences in healthy life expectancy are significant. The cuts in healthcare will primarily affect the elderly who are already struggling.”
De Lange agrees: “Vulnerable 55+ people with lower incomes will be the ones to suffer most.”
Rabobank economist Leontine Treur, on the other hand, argues that young people will also be affected by the new government policy. “I’ve listed the measures and looked at young and old, and low and high incomes. My conclusion is that everyone will be affected. It was to be expected that there would be cuts based on the election manifestos of D66, VVD, and CDA.”
Young people will also be affected by cuts to the WIA and WW - not only is the duration of the unemployment benefit shortened, but the maximum amount of the benefit will also be lower. “If you’re 28 and have been working since you were 16, including a part-time job, you’re still entitled to a year of unemployment benefits. So these cuts will also affect these young people. But it’s true that older people, on average, receive unemployment benefits longer. In that sense, they’ll be hit harder.”
The Cabinet is also reducing the maximum amount of the benefits - the income limit up to which you can claim. This will affect higher and middle incomes. “Then the income drop due to unemployment and disability can be significant. This applies to both older and younger people. Only these young people have families with children and have recently purchased a house.”
