The Dutch cabinet has taken decisive action to reform the financial contributions required under the Social Support Act (Wmo) starting January 1, 2027. This significant shift, spearheaded by State Secretary Vicky Maeijer, will replace the fixed monthly contribution of €21 with an income and asset-dependent contribution, aimed at making social support more sustainable for those who rely on it the most.
At the heart of this reform is the acknowledgment of unintended consequences stemming from the original structure of the Wmo. Introduced in 2015, the act was initially seen as a way to provide necessary assistance to individuals who require help at home. The fixed contribution, which has been set at €21 since 2019, led to higher-than-expected usage of the available resources, as many individuals who could financially afford private support began to utilize Wmo benefits as well. This surge not only placed excessive strain on the resources allocated to municipalities but has also resulted in longer waiting lists for those who genuinely need these services.
During the weekly Council of Ministers meeting on March 14, 2025, the cabinet unanimously decided on the new approach, which aims to balance demand more equitably by imposing higher own contributions on wealthier individuals. State Secretary Maeijer emphasized the importance of making social support accessible: “We see the pressure on support from the Social Support Act is rising. It’s imperative to implement measures to guarantee sufficient support for those who need it most, even as demand continues to grow.”
The adjusted contribution framework introduces significant changes based on household income levels. Under the new rules, individuals with earnings up to approximately €24,500 per year will not face contributions greater than €23.60 per month. For multi-person households, the threshold is set at about €34,000. Beyond these income limits, contributions will escalate with rising income levels, capping at €328 per month for singles earning around €61,000 and for multi-person households with earnings of about €70,500. Maeijer stated, “The more one earns, the higher their contribution will be; this ensures fairness and sustainability within the system.”
This move to increase contributions for those with higher incomes reflects mounting pressure on social support systems across the Netherlands, exacerbated by demographic changes such as double aging, which refers to both the aging population and the increasing number of elderly individuals requiring support. Municipalities, which have managed Wmo implementations since 2015, are now seeking greater flexibility to exempt certain groups from these contributions based on their financial situations.
Importantly, this restructuring not only seeks to distribute resources more fairly but also aims to lessen the financial burdens on municipalities tasked with providing support services. Previously, many municipalities found themselves struggling to meet the demands placed on them by the Wmo, leading to budgetary stresses and potential shortfalls. The cabinet anticipates this new model will ease these pressures and allow local governments more leeway to innovate and improve service delivery.
Though the cabinet and Secretary Maeijer position the changes as necessary and beneficial, there are concerns about the impact on individuals who may find themselves pushed above the income thresholds due to marginal increases. Critics question whether these adjustments will create barriers for those on the cusp of the limits, thereby limiting access to much-needed assistance.
Municipalities are also encouraged to adopt discretion when implementing the new contribution structures. They may recognize individual financial hardships on a case-by-case basis, allowing them to exempt specific individuals from monthly payments if they face significant economic strain. This facet of the reform is intended to maintain support for the most vulnerable within society, who are often the ones facing the most immediate impacts of financial stress.
With this upcoming legislation, the Dutch government aims to create a more nuanced and sustainable framework for social support. If implemented effectively, these measures could lead to improved provision for those genuinely needing assistance, ensuring no individual is left without help due to economic circumstances.
Looking forward, as the bill heads to the House of Representatives, the government anticipates lively discussions on the best approaches to implement these changes and how they might interact with other social support systems. Maeijer is optimistic, stating, “This is not just about numbers; it’s about creating effective solutions for our citizens, ensuring they receive the help they need without burdening our resources to breaking point.”
The transition to the income and asset-dependent contribution model marks a pivotal shift not only for the Wmo but also for the broader social service framework within the Netherlands. With demographic shifts and increasing needs for assistance, the cabinet is focusing on developing sustainable solutions to meet future challenges; the outcome may soon provide insights for similar programs globally.
