Dutch PM won’t rush purchasing power measures; Finance Min sees various options

Prime Minister Mark Rutte won’t reward the impatience of the opposition in parliament by hastily promising additional purchasing power measures. He gave them “no no and no yes” but wants to take the time to “seriously look at proposals from the left-wing parties in particular.”

Rutte sees particular promise in a PvdA and GroenLinks proposal to give people who receive healthcare benefits a once-off 500 euros extra this summer. “That could still happen this year,” he thinks, “We do not reject that, but there are technical aspects to it.”

The Prime Minister doesn’t think it’s necessary to decide before the summer. The municipalities have only just started to pay out the 800 euros in income support for low-income households the Cabinet promised earlier this year. He estimates that the worst need is now alleviated. “That probably won’t be enough either,” the Prime Minister admitted. More needs to be done “but you don’t necessarily have to do it tomorrow.”

Rutte is not trying to “kick things forward,” he stressed. But the Cabinet wants to carefully determine whether the opposition’s proposals are feasible and whether there is a financial cover for them. The Cabinet does not want to make any promises it can’t keep. The opposition reacted strongly to the Prime Minister’s words. Many parties want the Cabinet to intervene now and ensure that households’ financial pain is alleviated. 

Rute did give a definite answer to one proposal by the left-wing opposition. “A rent freeze is no longer possible,” Rutte said.

Minister Sigrid Kaag of Finance said she sees several possibilities to support low-income households more this year. The energy allowance municipalities are paying out to the poorest families can probably be increased, Kaag said. The Cabinet is also looking at an additional benefit through, for example, the Social Insurance Bank.

Kaag also mentioned the proposal by GroenLinks and PvdA to give recipients of healthcare benefits a little extra. However, for feasibility reasons, she suggested instead using the housing allowance. According to her, seven out of ten families facing financial trouble live in rented houses.

Another option is to increase the budget for special assistance. This arrangement reimburses people for necessary costs they can’t afford. Other existing funds for poverty alleviation could also be used as an instrument for extra income support.

Finally, the Cabinet is considering asking energy companies for leniency with people who cannot pay their bills. An appeal could be made to the social responsibility of these companies, said Kaag.

The Minister stressed that the Cabinet hasn’t decided on any of these measures yet. Two hard conditions are always feasibility and financial coverage, she stressed. There are also drawbacks to almost all options.