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Dutch Childcare Benefits Scandal

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2005–2019 false allegations of fraud

The typical red-and-white envelopes used by the Benefits agency, previously part of the Belastingdienst

The Dutch childcare benefits scandal (Dutch: kinderopvangtoeslagaffaire or toeslagenaffaire, lit. '[childcare] benefits affair') is a political scandal in the Netherlands involving false allegations of welfare fraud by the Tax and Customs Administration (Belastingdienst) against thousands of families claiming childcare benefits.[1][2]

Between 2005 and 2019, approximately 26,000 parents were wrongly accused of making fraudulent benefit claims, resulting in demands to repay their received allowances in full.[1][3] In many cases, this sum amounted to tens of thousands of euros, driving families into severe financial hardship.[1][2]

The scandal gained public attention in September 2018, prompting investigations that criticized the Tax and Customs Administration's procedures as discriminatory, particularly affecting parents with foreign backgrounds and characterized by institutional biases.[4][5] The severity of the issue culminated in the resignation of the third Rutte cabinet on 15 January 2021, just two months before the scheduled 2021 general election. A parliamentary inquiry into the affair concluded that it violated fundamental principles of the rule of law.[1][2][6]

Background [ edit ]

Childcare benefits in the Netherlands [ edit ]

Childcare in the Netherlands is not free and parents are generally required to pay for the costs by themselves. However, part of the costs may be covered by childcare benefit, which is available to families in which all parents are either employed or enrolled in secondary or tertiary education or a civic integration course.[7][8] The amount of childcare benefit is calculated as a percentage of the hourly rate of the childcare centre or childminding agency, ranging from 33.3 to 96.0% depending on the parents' collective income and the number of children.[9]

Each year, the government sets a maximum hourly rate for which families may receive childcare benefit. Any amount exceeding the maximum hourly rate must be fully paid by the parents.[9] The number of childcare hours for which a family is entitled to childcare benefit depends on the number of hours that each parent works. The maximum is 230 hours per month per child.[7] Parents may opt to receive their childcare benefit on their own bank account or to have it transferred directly to the childcare centre or childminding agency.[10]

Childcare benefits were introduced to the Dutch social welfare system in 2004, when the States General of the Netherlands adopted the Childcare Act (Dutch: Wet kinderopvang). Formally, the programme is run by the Ministry of Social Affairs and Employment, but the Tax and Customs Administration (part of the Ministry of Finance) is responsible for its implementation, including payment and fraud prevention.[11]

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