State Secretary Nobel: “If you work, you should be able to make ends meet. And if you are financially struggling, you should also be able to make use of the support available as a worker. This is not so simple right now. People claim a scheme in one municipality and not in another. Or they get lost in a maze of regulations. It really needs to be simpler.”
Simplifying Regulations
There are significant differences between municipalities in the regulations for people struggling with poverty and debts. This also applies to children. This creates inequality. National regulations for income support have also become complicated. About ten percent do not apply for benefits they are entitled to. Therefore, the State Secretary will work with municipalities on a simpler poverty policy, with more attention to the position of workers.
The cabinet has also begun to make income support from the government more accessible. For example, childcare benefits will eventually disappear. A new system will be introduced in its place that is simpler and provides working parents with more certainty about childcare costs. The cabinet is also simplifying the Participation Act for people on social assistance.
Targeted Help for Workers
The cabinet is concerned that low-income workers sometimes do not make use of the support they are entitled to. Therefore, the State Secretary will expand ongoing campaigns to encourage workers to check what they are entitled to or to take the step towards help in financial troubles. He wants to encourage employers, schools, general practitioners, maternity care, and other professionals to be aware of financial worries and debts, so that people receive help earlier. Quick help and utilizing available regulations prevent problems from arising or worsening.
Additionally, self-employed entrepreneurs must come onto the municipalitys radar more quickly in the case of emerging debts. The municipality can then provide help before the debts become problematic. This summer, municipalities, the Tax Authority, and the Benefits Service will start a trial where data will be shared to detect debts more quickly so that help can be actively offered.
Attention for Children and Young People
Half of the group of people living in poverty or with problematic debts have children. This hinders their development. For example, because they cannot follow a good education, build a social network, or because they face mental and physical health problems.
State Secretary Nobel: “No child deserves to grow up in poverty. Children deserve equal opportunities to develop, regardless of their parents financial situation.”
The cabinet wants to offer these children better opportunities and break the vicious circle of poverty. Therefore, it is working on an integrated approach for families in a vulnerable position. The cabinet is also continuing to provide subsidies to national poverty organizations united in Sam& for all children, such as the Youth Education Fund, Foundation Leergeld, and the National Fund for Child Aid, and will continue with school meals.
Young people are particularly vulnerable to poverty and debts. They often have a low and fluctuating income and therefore face a greater risk of getting into trouble. Young people are also not always able to foresee financial consequences, such as when paying for products afterwards. Therefore, the cabinet will continue with financial education in schools and campaigns aimed at the risks of paying afterwards and online gambling.
Reducing Problematic Debts
The National Program for Poverty and Debts includes a comprehensive package of measures to reduce the number of 700,000 households with problematic debts. One of the measures is the national debt pause button. This allows accumulating debts to be put on hold. Another measure, the basic service for debt assistance, ensures that people in every municipality have access to the same quick and good help with debts.
Court bailiffs will have a duty of care to signal an accumulation of debts and refer to debt assistance if necessary. Both private and public creditors will adopt a more social approach to collections. There will be one repayment plan to prevent competition between creditors and ensure that people with debts do not repay more than is responsible. There will also be one (digital) counter for government collections and an overview of public claims.