NOS
Nearly 1 million people in the Netherlands are at risk of living in poverty next year if the government does not take measures. The Central Planning Bureau (CPB) issued this warning yesterday. The director of the CPB, Pieter Hasekamp, advises the outgoing cabinet to look at options to prevent this, for example by increasing the minimum wage and social assistance.
The CPB predicts that 990,000 people, including 230,000 children, will live below the poverty line next year without government intervention. A significant increase, Hasekamp outlines News hour. “This year it’s about 825,000 people.”
In the past year, the government tried to compensate for the high energy costs and inflation for people with a low income with a range of measures. For example, there was a one-off energy allowance of two times 190 euros, an energy emergency fund, a temporary increase in the healthcare allowance and the child-related budget, an increase in the minimum wage and, in addition, various schemes per municipality.
But many schemes expire at the end of this year. “That means that the lowest incomes in particular will have more trouble making ends meet and can therefore fall below the poverty line,” says Hasekamp.
7 billion euros
Professor of Sociology Godfried Engbersen, chairman of the Social Minimum Committee, investigated on behalf of the government, what households need to make ends meet and to be able to participate in society. Among other things, he pleads for an increase in welfare and the minimum wage.
“Then you are talking about a structural amount of about 7 billion euros. That is of course a large amount. But by giving people a more secure existence, a lot of additional policy – which we now always have – is no longer necessary.”
The Warm Rotterdam foundation, a network of experts who know what poverty is, tries to do something for the estimated 80,000 poor in the city.
Rotterdam foundation helps people in poverty: ‘know where to turn’
Engbersen and his committee emphasize that providing social security is a constitutional task of the government. The social security of a large group is now at stake. “What we see is that people are short of money, often go into debt and end up in debt restructuring.”
Effective
Hasekamp calls the measures proposed by Engbersen – increasing social assistance and the minimum wage – serious options. “As CPB, we have also calculated these variants. Then you see that these are indeed one of the more effective measures to reduce poverty. And if you look specifically at child poverty, you could further increase the child-related budget.”
“7 billion is of course a lot of money,” Hasekamp continues. “So I also understand that a caretaker cabinet will be a bit more reserved. And not everything has to be done at once. I think you have to look at what works best at the moment and where you get the money from.”
Election campaign
Before the summer recess, a majority in the House of Representatives demanded that the outgoing cabinet come up with new measures to combat the expected increase in poverty in 2024. Political interpreter Nynke de Zoeten: “After the fall of the cabinet, many ministers do not know exactly where they stand. There will be another cabinet on Friday, it will have to be seen whether they will put their shoulders to the wheel together and what they can do as a caretaker cabinet still manageable with the budget.”
The entire outgoing cabinet believes that something needs to be done about rising poverty, says De Zoeten. “And that is indeed billions.” The increased healthcare allowance, a measure specifically for people with the lowest incomes, will probably remain, she expects. “Although unpopular measures will also be needed to balance the budget. That is also the commitment of outgoing minister Sigrid Kaag (Finance). We will see in the coming weeks whether the election campaigns do not already start in the meeting room of the Council of Ministers.”
2023-08-18 05:00:01
#CPB #Increase #social #assistance #minimum #wage #effective #combating #poverty
