Purchasing Power

The purchasing power picture looks balanced. An average household will see a 1.3% increase in 2026. The expected inflation is already factored in. The development of purchasing power is roughly the same for all groups. Working will pay off more due to a reduction in taxes in the first bracket and an increase in the tax credit for working individuals. The housing allowance will also increase. The self-employed deduction will decrease. The number of people and children living in poverty is expected to decline due to government policy, according to the CPB forecast. The share of people in poverty will drop from 2.9% to 2.6% of the population, and the share of children will also decrease from 2.9% to 2.6%.

Childcare

Working will also pay off more as the government increases the childcare allowance. All working parents with an income up to €56,000 will receive 96% reimbursement of the maximum hourly rate set by the government. This hourly rate will be adjusted next year for inflation and wage developments in the sector, increasing by 4.84%. Working parents with a higher income will also receive a larger reimbursement. The government is investing a total of €199 million for this.

Extra Funds for Addressing UWV Issues

The government is also allocating extra funds to address issues at the UWV. €213 million is reserved for back payments resulting from recovery actions. Due to long waiting times, individuals awaiting their assessment will not have to repay the advance if it cannot be offset against another benefit. This will cost €278 million. Additionally, €197 million is reserved for extra benefits because individuals over 60 will be assessed more quickly by the UWV. Finally, the government is investing €36 million in social-medical centers.

Social Development Companies

Employees with a work disability working at a social development company will receive compensation because their income has decreased this year. The government is allocating €111 million for this. The compensation will be distributed by municipalities and will apply for this year and for the years 2026-2028. For 2025, the compensation is approximately €37 gross per month. For 2026-2028, this will be slightly lower. Exact amounts will be determined later.

Public Energy Fund

The government is reserving €60 million to support households with low incomes and high energy costs. For this purpose, the government intends to establish a multi-year public energy fund. Due to the governments contribution, an additional €174.5 million of European funds will be made available. In 2027, an additional €50 million will be available for this fund. It is expected that people will be able to receive support from this fund starting next winter, in conjunction with measures to save energy.

Households with a minimum income in the Caribbean Netherlands can also expect an energy allowance of $1,300 per year next year.

Unemployment Benefit Duration Reduction

The reduction of the duration of unemployment benefits to 18 months is being postponed by the government for one year. Following the commitment from the framework agreement, it was agreed that the measure would take effect from January 1, 2027. The UWV has indicated that this start date is not feasible. The new intended start date is now January 1, 2028.