Welfare recipients in the Netherlands can find themselves in a tricky financial situation if they want to work more. Sounds counterproductive? It is!
That’s why the municipality of Utrecht has started a crowdfunding campaign to help relieve some of that financial stress for its residents.
The goal? To raise €100,000 for 100 residents receiving welfare.
Quick maths
First, let’s break down why this campaign is necessary.
Welfare recipients who also work part-time can earn between €170 and €273 extra per month on top of their welfare benefit, depending on their situation.
If they earn more, this extra amount will be cut from their benefit the following month.
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Adding to the financial stress, this money can also be cut from the benefit they receive the month after, even if they work less than the month before and have no extra income. This can leave people struggling to make ends meet.
Something to offset this difference
Sounds confusing? Alderman for work and income, Linda Voortman thinks so too. That’s why the municipality has started crowdfunding with the help of citizen’s initiative Collectief Kapitaal (Capital Collective).
“We want people to have financial security and peace of mind,” Voortman tells the NOS, so the aim is to raise €100,000 to cover the possible benefit cuts the current welfare system allows for.
With this money, 100 residents will receive up to €1,000 for the year. This money will be used as a “buffer budget”, which can offset the difference in income that some welfare recipients struggle with.
In doing this, Voortman wants to encourage welfare recipients to reenter the labour market, instead of being dissuaded by the insecurity and confusion caused by the current system.
The law needs some revising
But why crowdfunding, you may ask? After all, this is a municipality, not an indie film director.
Well, according to the current law, it would be illegal to fund such a project with municipal money.
Voortman hopes the crowdfunding initiative will encourage the Lower House to change the current welfare system and has sent a “buffer budget” proposal for their consideration.
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Regardless of what the Lower House thinks, it seems like Utrecht residents support Voortman’s idea — they’ve already raised €30,000 in one day of the crowdfunding campaign.
What do you think of initiatives like this to help with welfare confusion? Let us know in the comments!
Welfare, in Dutch Bijstand, is still a couple of 100 euros higher per month than State Pension, the AOW, on which thousands of elderly have to rely solely. There are no additional benefits like there are for Welfare or Bijstand!