Economy

Politics Fails to Abolish Allowance System for Years; SER Proposes a Solution

NRC·21 September · 05:00·3 days ago

The Sociaal-Economische Raad (SER) has developed a plan to largely abolish the Dutch allowance system, proposing lower health insurance premiums and higher income tax rates up to 56 percent for middle- and high-income earners. This concept, calculated by the Centraal Planbureau (CPB), aims to replace current allowances with simplified inkomensondersteuning, potentially starting in 2030. The final advice is expected this autumn, responding to long-standing political consensus since 2019 to simplify the complex system following the Toeslagenschandaal. While the childcare allowance ends in 2029, the SER suggests merging child benefits into one contribution and partially retaining housing allowances due to replacement difficulties.

Ozetta summarises; the reporting is the newsroom's

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