Try to share data on emerging debt earlier with cities

The government is conducting a trial where the Tax Authorities and the Department of Welfare can share information with municipalities about payment arrears. For example, people with outstanding debts need to be identified earlier and get help faster. Cities are already receiving signals from, for example, health insurers and energy companies.

“This government wants to reduce the number of people in debt,” said Nobel Secretary of State for Participation and Integration, who is responsible for the plan. “The following applies: prevention is better than cure. We want to offer help to people with debts due as soon as possible, so that they do not get into another problem.”

Eight large and medium-sized municipalities will participate in the trial in the coming years. This applies to Amsterdam, Apeldoorn, Arnhem, Assen, Leiden, Nijmegen, Opsterland and Tilburg. These cities may receive a message from the Tax Authorities or the Department of Welfare that people have been suffering payment arrears for some time.

The services only send a message to the municipalities if people have not paid after payment reminders and reminders. A phone call must have been made first as well. “Therefore the marks will only be forwarded if there is a suggestion that there may be a debt,” said a spokesman for the Secretary of State.

According to the spokesperson, the lawsuit does not violate the GDPR, the regulation that governs the protection of privacy. “It is not true that the Tax Authorities and the Department of Welfare are just providing information. There are clear agreements in place, all in accordance with the Municipal Debt Relief Act.”

If cities receive a signal about debt, they can offer to help people. They need to assess what works best in the particular situation, for example inviting someone in for a chat about his or her finances. It is expected that the participating municipalities will provide financial assistance to around 6,000 people in payment arrears each year.