Simplifying Childcare Access in the Netherlands

Executive Summary

The Dutch work requirement for childcare allowance now blocks access. Parents must show that both partners work — even a single hour in three months — to qualify, a rule that is both complex and ineffective. As a result, eligible parents fail to apply, while compliance checks remain nearly impossible.

The rule harms vulnerable children and burdens implementation. Children from non-working families benefit most from early childcare — through better learning outcomes, equal opportunities, and long-term growth — but are currently excluded. Meanwhile, the Tax Authority and social services face unmanageable verification costs, as for 10–20 % of workers employment cannot be automatically checked. The unclear criteria also expose parents to high repayment risks.

Complexity discourages participation and creates arbitrary outcomes. Parents outside regular employment must navigate heavy paperwork to prove eligibility. Those making honest mistakes can be forced to repay the full benefit, deterring low-income households from applying. At the same time, the rule can be easily gamed, encouraging sham arrangements such as token “one-hour jobs” to meet the formal requirement.

Maintaining the current rule risks more inequality and administrative failures. The system undermines trust and fails to target fraud effectively. Without reform, cases of wrongful exclusion or exploitation are bound to multiply before the childcare system is overhauled.

Abolishing the work requirement is the most effective solution. Alternatives include tightening the rule or testing it less often, but both retain its core flaws. Abolishing it would simplify administration, expand access for vulnerable children, and can be financed from the existing 2025 childcare budget. Fiscal space could also be preserved by asking households earning above €80,000 per year to contribute more.

Policy Recommendations

1. Abolish the work requirement for childcare allowance to improve access and simplicity.
2. Use existing 2025 childcare reserves to fund expanded participation.
3. Introduce higher contributions for high-income households to offset fiscal costs.
4. Simplify rules immediately, ahead of wider childcare reform, to prevent further repayment scandals.
5. Maintain space for political debate on future system design — whether childcare becomes universal, direct-funded, or income-based.