Dutch government prepares new household aid amid elevated inflation, fuel costs
The Dutch government expects additional measures will be needed next year to help households cope with persistent inflation and rising fuel costs linked to the war in the Middle East, according to sources cited by De Telegraaf. The plans also aim to secure sufficient political backing for the 2027 budget. The specific measures and how they would be financed have not yet been determined.
The government’s deliberations come as the Dutch Central Planning Bureau (CPB) forecasts that purchasing power will rise less strongly this year than previously expected. Under an unfavorable scenario, purchasing power could even decline. The CPB expects a modest improvement next year, but Rabobank is more pessimistic. It predicts that purchasing power could fall again in 2027 by 0.7 percent.
“Although wages will likely rise alongside inflation and a sharp decline in real wages is expected to be avoided, households will nevertheless feel the impact of higher prices in their wallets due to increased tax and levy burdens,” RaboResearch economist Wouter Remmen told De Telegraaf.
Higher gasoline prices are expected to be a key pressure point, while household energy bills could also increase for consumers signing new contracts. Low-income workers who depend on their cars for commuting are expected to be particularly affected. According to the source cited by the newspaper, they could spend about 8 percent of their income on more expensive gasoline.
The outlook is expected to reignite debate over reducing fuel excise taxes, a step the government had previously resisted.
