The cabinet is taking extra measures to simplify the disability benefits system, better guide people to work, and increase the minimum youth wage. The cuts in childcare will be scrapped, and a feasible path to a new financing system will be established. Below is an overview of several topics from the Ministry of Social Affairs and Employment.

UWV
It is of great importance that we support UWV by getting the quality in order and correcting mistakes made. For various recovery actions, nearly €500 million has been allocated incidentally until 2030 and structurally €91 million. In the recovery operation for temporary workers, UWV has started checking a total of 43 thousand benefits. The amount will be used to correct the benefits of people where mistakes have been found.

Additionally, an incidental total of €682 million and structurally €130 million has been allocated until 2030 to reintroduce the 60-plus measure for another two years, strengthen the execution of UWV, and forgive advances that people have received while waiting for their WIA assessment. The reintroduction of the 60-plus measure helps to reduce the assessment backlogs at UWV.

Structurally reforming the disability benefits system remains high on the ministrys agenda. For short-term improvements, Minister Van Hijum is allocating nearly €200 million structurally. This reservation will gradually build up to the structural amount over 50 years. With the available resources, Minister Van Hijum aims to take measures as quickly as possible to limit the increasing backlogs in WIA assessments. Fully reforming the disability benefits system is a long-term process. Therefore, the ministry continues to work on implementing the recommendations of the OCTAS committee.

WW
In the government program of this cabinet, a cut in the WW (unemployment benefits) has been agreed upon. Minister Van Hijum will work on extra measures to ensure that people who are (temporarily) unemployed are better guided to new work. In the tight labor market, there are many job vacancies, but people do not always know how to find their way to work. The ministry will assist with this. In return, the duration of the WW will be shortened from 24 months to 18 months by 2027. The details of the WW reform will follow before the summer.

Cut in childcare off the table, feasible path to new system
The cabinet is allocating extra structural money for childcare, reversing the announced cut of approximately €250 million from the framework agreement. The cabinet aims to realize a new financing system for childcare that is simpler for parents and offers them more certainty. The childcare sector has previously indicated that the current route is too ambitious. For this reason, the cabinet has decided to take more time to implement the new system. The new financing will start in 2029, two years later than planned in the framework agreement. The cabinet will continue to prepare the legislative proposal for the new system without delay.

Childcare benefits will gradually increase to 96% for all working parents over the coming years. This way, the demand for childcare can gradually rise, and the sector has time to grow its supply accordingly. In 2027, middle-income earners with a total income of up to approximately €84,000 will receive a reimbursement of 96% up to the maximum hourly rate. In 2029, this will apply to all working parents with childcare benefits. State Secretary Nobel has additionally reserved funds for the implementation of the new system and for measures to ensure the accessibility of childcare. He aims to facilitate a smooth transition.

Funding for municipalities to implement language requirement
The chance of getting a job is greater if you master the Dutch language and is crucial for good integration. Therefore, the cabinet considers it important that people receiving social assistance have basic knowledge of the Dutch language. State Secretary Nobel will make extra funds available to municipalities starting in 2027 for implementing this language requirement. With the funds, municipalities can offer language education, focusing on people who have just entered social assistance and on recipients who would benefit from language offerings. In 2027, this will amount to €3.7 million, increasing to €17.4 million structurally.

Secure wage cost subsidy for social development companies
Social development companies receive wage cost subsidies from municipalities for sheltered workplaces. This is a contribution to the wage costs. With the current method of calculation, the wage cost subsidy is often set too low. And social development companies receive too little subsidy for the costs they incur. To solve this, a fixed percentage of wage cost subsidy per employee will be introduced. This provides stability for employees and more financial room for working conditions. The cabinet is allocating €34 million for this year. This amount will increase to structurally €90 million by 2048. The amount increases because the number of sheltered workplaces will rise in the coming years.

Minimum youth wage
The statutory minimum youth wage will increase for everyone aged 16 to 20. It involves a gradual increase per age. For this, Minister Van Hijum is making €60 million available structurally. The precise implementation and amounts will be further elaborated by the ministry. The final method of adjustment will be shared before the summer in the cabinets response to the exploration of the minimum youth wage.

Child-related budget
The child-related budget will decrease for all households with an income above approximately €60,000 per year. The amount of the child-related budget already depends on income. The higher the income, the lower the child-related budget. With this reform, this allowance will be phased out more quickly from an income of approximately €60,000 per year. This means that households from this income level will have less entitlement to this benefit. This measure makes the child-related budget more targeted at the parents who need this allowance the most.

At the same time, a rigidity in the child-related budget and the healthcare allowance will also be resolved. Currently, there is a rule that people become a benefit partner if they live with one other adult and there is also a minor child of one of them registered at the address. This has negative consequences for the benefits they receive. This rule will be abolished on January 1, 2027. This means that informal caregivers and house sharers will receive a higher allowance more quickly. This will be covered by a reduction in the asset limits of the healthcare allowance and the child-related budget.