Inequality
The Netherlands is both one of the world’s most equal and unequal countries. Measured by income, the country has the fifth lowest inequality rate in the EU. Income disparities have remained mostly static since the mid 1970s, and the councils with the biggest gaps between rich and poor are again the big cities.
When measured by overall wealth, however, the Netherlands is one of the most unequal countries on earth. In 2020, a European Commission backed study found that only the US was more unequal in terms of overall wealth, and said that the statistics are driven by debt, and that the coefficient is elevated by the number of Dutch households with high mortgages.
The working poor
When publishing its new definition of poverty last month, the CBS was quick to point out that a large number of people living below what officials consider necessary were actually in work.
“Working people are often more short of income than poor people living on benefits,” said CBS chief economist Peter Hein van Mulligen. “Compared with 2018, there were relatively more working poor than people living on welfare benefits.”
This is partly down to the prevalence of part time working, and the fact that supplementary benefits are income dependent, which can discourage people from working longer hours.
The Dutch minimum wage is currently €13.68 an hour for everyone over the age of 20, which works out at roughly €28,454 a year for a 36 hour week.
So what about benefits?
From July 2024 the basic welfare payment for a single person amounts to €1,308.45 a month, and €1,869.21 for a couple. You can have up to €7,575 in assets as a single person and double that if there are two of you, before the basic benefit is cut.
On top of that you can claim up to €123 a month in healthcare benefits, depending on your income and help with paying your rent, but only if you live in a rent controlled property. Again, both these benefits depend on how much you have in assets.
Families with children get additional child benefits and help with paying for daycare. Some local authorities also provide extra help. The very poorest residents may be exempt from paying local authority taxes, for example, or be eligible for extra financial support.
Food banks
A report compiled by the Red Cross earlier this year found that one in seven people in the Netherlands go short of food or lack a balanced diet, with most of them blaming a lack of money.
Today, there are 178 food bank foundations in the Netherlands operating under Voedselbank, the national federation, which works through 550 distribution points all over the country.
Last year the agency helped over 100,000 families a week, and another 300,000 could qualify for help but don’t receive it. To qualify, people have to prove their income, their costs and any debts they may have.
“People wrongly think that we’re a government organisation, and they are afraid of the government,” says deputy chairman Tom Hillemans. “Many people also do not have access to, or do not know how to use digital registrations and so need help accessing services.”
There are also dozens of other independent operations which are community or church based.
Government strategy
One of the key issues in last year’s Dutch general election was bestaanszekerheid, one of those impossible to translate words which means roughly socio-economic security.
Political parties from across the party spectrum promised increases in the minimum wage, lower taxes and major efforts to combat poverty. Bestaanszekerheid was everyone’s buzz word. It was a key issue in the formation process, which saw the Netherlands get a right-wing cabinet including the far-right PVV.
Since then, however, many of the promises have been watered down. The impact of September’s budget, ministers admitted, would be a minor increase of less than 1% in spending power for the very poorest in society. Moves to increase the minimum wage by a fraction more, were quietly shelved.
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Publish date : 2024-10-30 05:43:00
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