NOS Nieuws•vandaag, 20:51
Billie Barrier
editor Economics
Billie Barrier
editor Economics
After more and more people came to the food bank in Utrecht Overvecht in 2022, the number of customers will drop by ten percent this year. “And that is the picture throughout Utrecht,” says Nico Jongerius of the Food Bank Overvecht. The government’s support measures, such as the energy allowance and the extra healthcare allowance, are the reason for some households that they are just able to make ends meet this year.
But at the end of this year, the support measures that were supposed to cover rising energy prices and other costs will expire. This morning’s CPB estimates show how important these are for a large group: almost a million people will be below the poverty line next year if no new policy is introduced. An increase of about 165,000 people compared to this year.
According to the official definition, you live in poverty if you have too little money for essentials such as water, electricity, food and the occasional something to relax for a long period of time. For a single person, this amounts to more than 1500 euros net. The poverty line is higher for families, because they obviously need more money. But the CPB does not publish the exact amounts used in calculations for households with more people.
The bottom 20 percent of incomes will not improve in purchasing power, according to the estimates. In this scenario, benefit recipients in particular will lose purchasing power. While purchasing power across the board is expected to recover in 2024, with an increase of 1.9 percent.
At the Food Bank Overvecht, people talk about how badly the government’s help is needed:
“I want to make an appeal to politicians: Make this an urgent matter”
A worrying development, according to Nibud. “Especially for people who already live around the minimum income, while they still have the support measures this year,” says spokesman Max Pijnenburg. “If the support measures disappear, this group will really get into trouble. Then people will be in the red or fall further into the red.”
“People are going to make choices that they save on. This can vary from shopping less to avoiding care because they can’t afford it.”
The outgoing cabinet wants to prevent poverty from rising again, but there is still discussion about how extra measures will be paid for. The CPB also warns of an increasing budget deficit in the coming years, which means that choices have to be made.
‘Deferred maintenance’
Alexandra Bartelds, director of the association of managers in the social domain Divosa, thinks temporary measures are not enough at all. “Something has to be done structurally, such as raising the minimum income and social assistance benefits. Stop sticking band-aids.”
She emphasizes the importance of social security, of which an income that is sufficient and predictable is an essential part. “You never know where you stand now. This group is always dependent on politics whether they are helped with all those measures. They are in debt and live from day to day.”
“Actually, these measures are also overdue maintenance,” says Auke Schouwstra, spokesperson for the NVVK, the trade association for debt assistance. “The situation has not improved very much for those 20 percent, even before the corona crisis and the energy crisis, they already earned too little compared to the fixed costs.” He doubts whether the caretaker cabinet can still take major steps.
Psychological complaints
The consequences of this uncertainty can also go beyond financial problems, says Bartelds. For example, money worries and stress can also have consequences for children’s learning performance and there are also many psychological complaints involved. “People also already know that they may deteriorate next year, which is already causing a lot of concern.”
In a few weeks, on Prinsjesdag, the Central Planning Bureau will publish an update of the expectations. In it, the researchers include the impact of additional government policy to possibly compensate households.
2023-08-17 18:51:50
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