Good news for parents in the Netherlands! The Dutch cabinet has announced that as of January 2025, families earning between €29,400 and €159,200 will see cuts to the cost of childcare.
How? It’s all thanks to a higher childcare allowance, which could save parents with a middle income up to an extra €1,000 a year.
For the government, this is the first step in their plan to introduce completely free childcare by 2027.
Ok, but how much will my family save?
In the Netherlands, the childcare benefit (kinderopvangtoeslag) works like this: you pay the full cost of childcare, and then the government will give you an allowance to help cover it.
Just how much childcare allowance you receive depends on a number of factors, such as how many children you have, whether both parents are working, and how much you earn.
READ MORE | Toeslagen: save money with these allowances in the Netherlands
In turn, how much you stand to benefit from the higher childcare allowance also depends on these factors.
However, according to a press release by the Dutch government, families with a middle income will benefit the most.
The government offers examples to help paint the picture:
“For example, a family with one child in daycare and a combined income of €45,000 will currently receive back 87.3% of the costs up to the maximum hourly rate.”
However, by 2025, this will increase to 96% of the costs.
Who will save up to €1,000 a year?
According to Nu.nl, the below family will save close to €1,000 in 2025:
Let’s say we have two working parents earning a gross income of €63,100. They have two kids who are both in childcare.
In this case, they will receive an extra €994 back in childcare allowance next year.
Does this mean you can purchase a holiday home in the Swiss Alps? Not exactly, but it is a step in the right direction.
What do you think of this increase? Tell us your thoughts in the comments below!
Definitely a trip to the Swiss Alps! Just make a U-turn upon arrival!