Childcare Cost Surge for Lower Incomes
- Low-income working parents could face significantly higher childcare expenses than previously anticipated, according to recent projections.
- As a notable example, a family earning up to 20,000 euros annually could see their childcare costs for two children increase by 1,578 euros this year, and potentially...
- The discrepancy stems from the CPB's updated figures, which factor in higher price increases than the government's earlier projections.
childcare Costs to Rise Sharply for Low-Income Families, Consultant Says
Low-income working parents could face significantly higher childcare expenses than previously anticipated, according to recent projections. Childcare consultant Ed Buitenhek estimates that some families could pay hundreds, adn in some cases, over a thousand euros more in 2026 compared to this year. Buitenhek’s calculations are based on the latest forecasts from the Central Planning Bureau (CPB).
As a notable example, a family earning up to 20,000 euros annually could see their childcare costs for two children increase by 1,578 euros this year, and potentially rise to 2,793 euros next year. This is 271 euros higher than previous government estimates.
The discrepancy stems from the CPB’s updated figures, which factor in higher price increases than the government’s earlier projections.
While low-income families face rising costs, central and high-income families are expected to see a decrease in their childcare expenses next year.
the increased costs for low-income families are linked to the government’s plan to freeze childcare allowance increases in line with expected price hikes, a move intended to save approximately 254 million euros.
While the austerity measure affects all families, higher-income households stand to benefit more significantly from a plan to make childcare nearly free for everyone by 2027, with 96% of costs reimbursed. An intermediate step is planned for 2026, with an increase in the allowance percentage, though the exact figure remains unclear.
Currently, low-income families already receive a 96% reimbursement of childcare costs, making the planned cutback a substantial financial burden for them.
The proposed cuts have drawn criticism from opposition parties. Member of parliament Hans Vijlbrief (D66) accused the VVD of sending a “double message” to parents. “The VVD says: we have to make childcare cheaper, but at the same time the current cabinet is working to make childcare more expensive,” Vijlbrief saeid during a debate in early March.
Vulnerable Group
The planned cut is particularly concerning given a meaningful price correction last year that resulted in increased childcare allowances for all families.
Gjalt Jellesma, of the interest group of parents in childcare (Boink), argues that the 2026 cut would negate that correction. “The threshold for low-income parents to bring their children to daycare is even higher,” Jellesma said.
Jellesma emphasized the societal benefits of enabling low-income parents to work. “There are huge shortages in the healthcare sector,for example. So why are we making it even more challenging for this group to work?”
the proposed cutback is currently under discussion during negotiations regarding the Spring Memorandum. It also requires a change in the law, which must secure a majority in both the Lower and Senate, where the coalition parties lack a majority.
