National Social Report. The Netherlands

Transcription

1 National Social Report The Netherlands April 2014

2 Contents 1. Introduction Social Inclusion / Poverty Healthcare Theme: Access to social security by the young unemployed

3 1. Introduction The National Social Report (NSR) is a biennial report drawn up in the context of the Open Method of Coordination (OMC), which reports on three subareas, namely poverty and social inclusion, pensions, and health. In 2014, the Member States were asked to also report on access to social security by the young unemployed. Parallel to the NSR the National Reform Programme (NRP) has been drawn up. In this NRP, the Member States report annually on the targets set in the context of the Europe 2020 strategy. This programme also addresses developments in the areas of poverty, pensions, and care. The NSR may be viewed as a supplement to the NRP. The NRP reports extensively on pensions. The NSR will therefore not report any further on this subject. Where applicable, reference will be made to the relevant report. The last time the Netherlands reported on social matters in a NSR was in Objectives of the Government The Rutte-II Government has been in office since 5 November One of the Government's key objectives is to let the Netherlands emerge from the crisis in an economically strong and sustainable manner. It aims to achieve this objective by taking measures and implementing reforms that are directed towards overcoming the negative consequences of the crisis, on the one hand, and dealing with developments already foreseen, such as demographic ageing, on the other hand. The Government has submitted proposals for structural reforms in various areas, including the labour market, the housing market, pensions, long-term care, and energy supply. The result will be a stable economic and sustainable basis for the future. The Coalition Agreement states that people who can work should not be relying on benefits. People who through no fault of their own are unable to find work are assured of receiving assistance at the subsistence level, at the very least. The Government wants to maintain this agreement. Therefore, it will actively tackle abuse and fraud, and organise benefit schemes so as to keep them viable and accessible as demographic ageing increases and the labour force shrinks. Everyone must contribute, to the extent that they are able, to paying the bill for the crisis. In other words, the higher people s income is, the more they will be asked to contribute. The Government will also tackle the poverty trap. Work must be rewarded, and therefore the financial difference between being on benefit and working must be increased, by reducing taxes for those who work. Good care and, more importantly, good health is not just a matter for the government. Success can only be achieved by working together. That starts with prevention and a healthy lifestyle. Of course, everybody has a personal responsibility for their own health, butthe government wants to support people in this area. In addition, the Government has outlined three additional priorities in the area of care. First of all, the government wants to further improve the quality of the care by gaining better insight into care delivery, reducing variation in medical practice and preventing unnecessary medical treatment. In the health care sector, boosting quality often goes hand in hand with cost reduction, which is a second priority. The Government intends to reduce the costs by better controlling the amount of care given, preventing overtreatment, introducing strict package management, reducing overcapacity, and ensuring that resources are not wasted. The third priority is an improved organisation of care. It wants to concentrate expensive, complex and acute medical care, and organise less complex care closer to home; both measures help to improve quality and drive down costs. In addition, innovation will find its way to care, if they increase quality and efficiency. Broader support for the Government's policy Since the Government has taken office, it has entered into supplementary agreements with various parties in order to increase support for the measures to be taken. For the NSR, the following agreements are relevant: 2

4 Social Agreement On 11 April 2013, the Government entered into a social agreement with the three trade union federations and the Confederation of Netherlands Industry and Employers VNO-NCW. They want to boost economic recovery by taking various measures. In addition, the labour market must be reformed to meet the demands of the 21st century. A more active approach to prevent unemployment and to guide people from job to job is the essence of the package of measures. (See also the NRP) Care Agreement On 16 July 2013, the Government made agreements with employers' organisations (Actiz, VGN, GGZ Nederland, NFU, BTN, and NVZ) and with the majority of the employees' organisations (CNV, MHP, NU91, and FBZ) on reforms in the healthcare sector. Essence of the agreements is the combination of a responsible implementation of the Coalition Agreement, realistic pay rises, and measures directed towards employment and quality of labour. The agreements address both longterm care and a recovery-oriented system of care (Health Insurance Act). The reforms of the longterm care are aimed at enabling people to live longer at home with tailor-made support and home care ('extramuralisation'). The measures are also intended to ensure that long-term care is made future-proof. The agreements generally have to do with the reduction of health care spending between 2014 to Additionally, in 2013, three main agreements were concluded on the specialist medical care, mental health care and general practice. These agreements are about the improvement of the quality and the limitation of growth, by which waiting lists should be avoided. The at recovery aimed care (Insurance Act) in 2014 may grow up to 1.5 percent and after that 1 percent. This will lead to a saving of approximately 1 billion euro. By the end of 2013 the government and administration of the Association of Municipalities (VNG) reached an agreement on the decentralisation of long-term care and social support. Municipalities receive an incidental 200 million euro in 2015 for a careful transition of clients and from 2016 they will receive a structural 200 million euro for renewal of social support. (see also the NRP, Section 3.3, and the NSR Chapter 3 on care) Pension agreement On 18 December 2013, the Government entered into an agreement on the tax rules for pensions with the Democrats 66 (D66), Christian Union, and the Calvinist Political Party (SGP). The new proposals ensuing from this agreement have meanwhile been adopted in the House of Representatives and have been submitted to the Senate. These proposals create the necessary reforms of pension accrual with tax relief. At the same time, it continues to be possible to accrue an adequate pension (see also the NRP 2014, Section 3.3). Budget Agreements 2014 In October 2013, the Government, D66, Christian Union, SGP, made agreements on the budget for The package of measures is directed at increasing the number of jobs, improving education, and making the economy more sustainable. The parties also agreed on cutting public expenditure by 6 billion euro on a structural basis. The agreements created broader public support for individual budgets, the 2014 Tax Plan, the financial policy, and the implementation of the Social Agreements (see also the NRP, Section 3.1). Housing Agreement The Government reached a housing agreement with D66, Christian Union, SGP. The Housing Agreement includes measures to boost the construction sector and, in doing so, employment. Firsttime buyers will get help as well, and the measures ensure that fewer people occupy social housing at a rent that is too low in comparison to their levels of income. On 17 December 2013, the Senate approved the Housing Market Measures 2014 II Bill (Wetsvoorstel Maatregelen Woningmarkt 2014 II). As a result of this approval, it will now be possible to implement the agreements from the Housing Agreement (see also NRP section 3.2). 3

5 Changes in the social domain: decentralisation of government task to municipalities In 2015, the municipalities will be furthermore responsible for youth care, work and income, and more than before give support to people who experience a restriction when participating in society because of a long-term illness, old age and disability, for it is expected that the Youth Act (Jeugdwet), the Participation Act (Participatiewet), and the Social Support Act (Wet maatschappelijke ondersteuning, Wmo) will enter into force in The decentralisations in the social domain form one of the most important developments in domestic administration in the last decade. These decentralisations involve not only the transfer of duties and resources, but also the fact that the municipalities are required to work in an even more integral way in the social domain. The decentralisations strengthen the role of the municipalities to support citizens and to encourage them to participate more in society. Based on their responsibility in the social domain, the municipalities are able to provide improved tailor-made services, and at an individual level they are better equipped to see how to encourage individuals to continue to participate in society. The decentralisations in the social domain are quite a task for the municipalities and central government. The Government will take various measures to support the municipalities in the implementation of the new policy and the proper implementation of their new tasks. For instance, the money flows to the municipalities required for the tasks in the social domain will be organised more simply and more clearly. Ultimately, the municipalities will receive one budget in order to promote participation in society, as a result of which the spending of the budget and the responsibility for it will become clear. The Government will support the municipalities in the implementation of the decentralisations where necessary, and contribute to the envisaged transformation. For this purpose, special transition bureaus have been established that operate in close cooperation. With the implementation of the Youth Act, the responsibilities of the municipalities for youth care will be extended. From 2015, all forms of youth care will fall under the municipalities. This means that from that moment onwards in addition to the existing tasks the municipalities will also be responsible for secure youth care, current provincial youth care, youth mental health care (also for the purposes of juvenile criminal law), care for mentally impaired young persons, guidance and care, youth protection, and youth probation and aftercare services. With the implementation of the Participation Act, the municipalities will be responsible for the provision of benefits and reintegration of new young disabled persons with the ability to work, and for a sheltered employment scheme for those who cannot perform regular work. The municipalities are currently responsible for the provision of social assistance and sheltered employment. In addition, they will be responsible for the new young disabled persons (those who will be considered young disabled persons as from 1 January 2015) with the ability to work. The young disabled persons with the ability to work who currently receive a benefits under the Work and Employment Support (Young Disabled Persons) Act (WAJONG) will continue to do so and will not be transferred to the responsibility of the municipalities. The Employee Insurance Agency (Uitvoeringsinstituut Werknemersverzekeringen, UWV) will continue to be responsible for them. The Social Support Act 2015 is part of the long-term care reforms. The Exceptional Medical Expenses Act (AWBZ) will be transformed into a new core act (the Long-Term Care Act (Wet langdurige zorg) providing for the organisation of residential care for the elderly and the disabled as well as the care for longer-term mental health care (treatment longer than three years). New clients requiring lighter forms of care, who would formerly have received residential care, will in the future receive care in their own environment. Ambulatory nursing and personal care are transferred from the AWBZ to the Health Insurance Act. With the implementation of the Social Support Act 2015, the municipalities will be made responsible for activities in the area of support and assistance. The claims to this care will be dropped or limited at the same time. 4

6 Consultation of stakeholders Considering the fact that, in addition to the central government, the regional and local authorities are responsible for the implementation of parts of the NSR, these authorities have been involved in drawing up both the NRP and the NSR through the regular consultation fora. In general, there is broad consensus on the necessity and direction of the reforms. There is, however, discussion about the implementation, the pace, and the finances of these reforms. For the field of social inclusion/poverty, interest groups concerned with social inclusion/poverty were consulted. This produced mixed reactions. Most reactions from civil society organisations were critical in tone. The organisations are worried, among other things, about the developments on pensions. They foresee that hardly any people will be able to build up 75 percent of the average salary in pension, due to many temporary jobs and work as self-employed persons without personnel. The extramuralisation initiated is considered a good development, but the organisations do worry about simultaneous spending cuts in home care. The importance of labour participation/inclusion is recognised, but it is argued that this does not provide a short-term solution in the current economic situation. The civil society organisations suggested creating approximately 50,000 jobs, such as the so-called 'Melkert jobs', i.e. jobs for the long-term unemployed. With regard to poverty in families, attention was drawn to the balance between work and care, to ensure that "the financial poverty of children does not turn into 'loneliness poverty'". And for the working poor, attention was drawn to the high travelling expenses and the maximisation of the travelling allowance in many collective labour agreements. This is part of the poverty trap. Besides these critical notes, there were also positive notes. The organisations mentioned, for instance, the different tone compared to previous years, and the fact that now, more than in the past, solutions are being sought and that third parties are becoming involved. The fact that the government is daring to take new measures was also mentioned. 5

7 2. Social Inclusion / Poverty State of affairs The NRP 2014provides a description of the state of affairs in the Netherlands in relation to the poverty target in the context of the Europe 2020 strategy. In the table below, the position of the Netherlands is broken down into the three indicators for measuring the risk of poverty and social exclusion. Table: Position of the Netherlands for three indicators of the Europe 2020 target, 2012 Indicator at risk of poverty rate material deprivation jobless households Percentage of the Dutch population (0-59) 10.1% 2.3% 8.9% Score in Europe 2 nd (after CZ) 3 rd (after SE and LUX) 11 th % EU % 9.9% 10.3% In the Poverty Monitor 2013, the Netherlands Institute for Social Research (SCP) and Statistics Netherlands (CBS) present the most recent national data on the risk of poverty in the Netherlands. The report presents (preliminary) realisation figures (the risk of) poverty in the Netherlands for 2012 and the estimates for the years 2013 and In 2012, 9.4 percent of the households lived below the low-income limit. This is an increase of 1.2 percentage points compared to The downward trend shown in the period ended in 2012, and we observed an increase of 0.3 percentage points in the percentage of households with incomes below the low-income limit for a longer period of time (four years or more), resulting in a percentage of 2.7 percent. Single-parent families and single persons (<65 years of age) have the highest risk of poverty. However, the long duration of the low income has strongly decrease in the period for this group. This is the result of increased labour participation and income support from the government (e.g. the child-related budget). Despite government policy, the risk of poverty among children increased in The fact that children have a higher risk of poverty than adults is strongly related to the higher risk of poverty in single-parent families. The risk of poverty decreases, however, as the children grow older and parents have more time to participate in the labour market. The State Secretary for Social Affairs and Employment stated (among other things in Parliamentary Papers , nos 265 and 269) that it is the Government's aim to help and support people where necessary in order to enable them to stand on their own feet, to seek and find work as quickly as possible. It is important to ensure that people do not fall through the safety net. The Government wants to prevent children from becoming the victims of the financial problems of their parents. Children must be able to develop, to discover and to develop their own talents, and to participate fully in society. It is furthermore essential to have a proper safety net and a palette of support tools, also when it is necessary to keep public finances in order. The Government considers it very important to ensure that people with limited financial means and/or problematic debts will be able to participate in society as usual. In addition to the substantial effort made by the Government to help people to get and keep work, it has therefore decided to make additional funds available to intensify the measures against poverty and debts, in addition to the 20 million euro already made available by the Government for For 2014, an additional amount of 80 million euro has been made available, and subsequently 100 million euro a year. The largest part of the additional funds will be available to the municipalities that are primarily responsible for the poverty and debts policy. In 2014, the municipalities will receive 70 million euro from the additional funds, and in the subsequent years 90 million euro per year. In this context, the Coalition Agreement stated that additional attention must be paid to children in poor families, the working poor, and the elderly with small pensions. In her letters, the State Secretary furthermore called for additional attention to prevention and early detection of debts. 6

8 Besides the additional funds for municipalities, additional funds will also be made available for several national initiatives and a number of national organisations. This will provide an impetus for the strengthening of the existing national structure. It is of great importance that civil society organisations will be able to continue their valuable work and to be a good partner to the municipalities. Successful initiatives by municipalities and civil society organisations are aimed at increasing the self-reliance of individuals, and are furthermore characterised by tailor-made arrangements, a preventive approach, cooperation, and the deployment of lay experts. Inclusive labour market Participation Act The Participation Act will enter into force on 1 January The purpose of this Act is to get more people, also the persons with an occupational impairment, to the work. With the entry into force of the Participation Act, the municipalities will be responsible for people with an occupational impairment and for people who need assistance in finding work. The Participation Act will replace the three regulations that are currently in force: the Social Assistance Act (Wet werk en bijstand, WWB), the Sheltered Employment Act (Wet sociale werkvoorziening, WSW), and the Invalidity Insurance (Young Disabled Persons) Act (Wet Werk en Arbeidsondersteuning Jonggehandicapten, WAJONG). The House of Representatives has already adopted the legislation for the Participation Act. With respect to this new target group, the municipalities have the same tasks as for people receiving social assistance benefits, namely providing support aimed at integration into the workforce and, where necessary, income support. For the purpose of reintegration support, the municipalities will have a combined reintegration budget and more tools at their disposal. Based on the needs of their clients, the municipalities will decide who will qualify for what type of tailor-made support. The municipalities shall cooperate at the regional level with the Netherlands Employees Insurance Agency (UWV), employers, and employees in regional branches of UWV WERKbedrijf (the work placement branch of the UWV) to place people who are not able to earn the statutory minimum wage in jobs which will be made available by employers. As from 1 January 2015, the benefits under the WAJONG ('WAJONG benefit payment') will only be accessible to young disabled persons who permanently lack the ability to work. The UWV decides whether a person qualifies for such a benefit. The group of persons currently receiving WAJONG benefit payments (everyone admitted before 1 January 2015) will be assessed on their ability to work. This will also be decided by the UWV. Persons receiving WAJONG benefit payments who do not have the ability to work will keep their benefit payments of 75 percent of the statutory minimum wage (SMW). Persons receiving WAJONG benefit payments with the ability to work will be confronted with a reduction in the benefit payment to 70 percent of the SMW as from 1 January In order to assist this group in finding a job, additional funds will be made available for the UWV as from These persons receiving WAJONG benefit payments will continue to be entitled to a WAJONG benefit payment. The UWV will continue to be responsible for reintegration and the provision of the benefit payments. The agreements in the Social Agreement imply that everyone will earn at least the minimum wage, also those people who are not able to do so due to an impairment. In these cases, the employers pay the minimum wage (or, where applicable, the negotiated wage), but they get the difference between the minimum wage and the actual production of this employee reimbursed through the wage cost subsidy. The employers have agreed in the Social Agreement to guarantee additional jobs for people with an occupational impairment. In the period up to 2026, the employers have committed themselves to gradually create 100,000 additional jobs for this target group, and the government will add 25,000 jobs to this number. These agreements are not without obligations. The number of jobs that have been added for people with an occupational impairment will be counted from year to year. If the parties fail to meet their commitments, a quota scheme will enter into force. This year, the State Secretary for Social Affairs and Employment will submit a bill to make preparations for this purpose. The first time of assessment on the basis of the results in 2015 will be in

9 The Participation Act is one of the three major decentralisations that the Government intends to realise in its present term of office. It provides leeway to the municipalities to provide coherent assistance to those people who need support in guidance to employment and/or other forms of social guidance. As from 2015, the municipalities will receive one undivided budget, from which they will be able to finance all these support services. The expenditures under the WAJONG, WWB, and WSW currently amount to nearly 11 billion euro. Without measures, the expenditures will rise to 13.5 billion euro. With the implementation of the measures from the Participation Act, the expenditures will still rise, but in the long term, this rise will be 1.7 billion euro less, to 11.8 billion euro. Combating discrimination on the labour market The 2013 Annual Integration Report of the Netherlands Institute for Social Research (SCP) shows that the current economic situation strongly affects the labour market position of non-western migrants. Where non-western migrants were partly catching up their disadvantageous position in the period between 2001 and 2008, the differences with respect to native Dutch people have increased again as a result of the economic crisis. Unemployment among non-western migrants, for instance, has increased (from 9 percent in 2008 to 16 percent in 2012) and, in particular, younger migrants have been hit hard as a result of the crisis. The net labour participation of migrants and their children decreased from 58 percent to 53 percent, whereas the labour participation of native Dutch people has remained relatively stable at 70 percent. This unfavourable development has worsened the income position of non-western migrants, and increased their benefit dependency. In 2011, one in four of the non-western children lived in a household with an income below the poverty line; among native Dutch children, this is one in fourteen. There are positive developments as well: more and more non-western migrants, in particular the second generation, are more highly qualified and work at a higher professional education level; the labour participation of non-western women has increased, and the number of early school leavers has decreased. The SCP has drawn the conclusion that the explanation for the differences between native Dutch people and migrants prior to accessing the labour market (pre-entry) can hardly be found in general, objective characteristics: compared to native Dutch people with similar qualifications, migrants are much more often unemployed. The SCP gives as a possible explanation for the higher unemployment rates the difference in intensity and effectiveness of the search behaviour of migrants, and the issue of discrimination. After accessing the labour market (once a person is employed, post-entry), with similar educational level and age, there are no differences in professional level and salaries between native Dutch people and migrants. However, non-western migrants continue to be extra vulnerable by being overrepresented in flexible and temporary jobs. Measures that have already been implemented, such as the Approach to Youth Unemployment (see below in this report), the Participation Act, and the sector plans, are effective tools to strengthen this structural progress and to catch up on these disadvantages, and must therefore be continued vigorously. In addition to this, the current labour market position requires an extra impetus from migrants. This may be realised by seeking increased cooperation with public parties on the themes of youth unemployment and language skills. SCP's conclusion that the explanation for the differences between native Dutch people and migrants prior to accessing the labour market may possibly be due to, among other things, discrimination, is in line with findings from previous studies. The Minister of Social Affairs and Employment considers it of great importance that discrimination at the recruitment and selection stage of employees is actively prevented and countered. This applies to regular jobs, but certainly also to work placements. A work placement is not only essential for completing an education, but also because of the fact that more than half of the number of job-seeking young persons find their first jobs through a work placement. Labour market discrimination is not only unacceptable for moral reasons, but also destroys public capital. The Government stands up for measures against discrimination in general and discrimination on the labour market. In February 2013, the Government asked the Social and Economic Council of the Netherlands (SER) for its advice. As soon as possible after the publication of the SER advice (which is expected in the spring of 2014), the Government will propose a package of measures aimed at preventing and countering labour market discrimination. 8

10 The State Secretary of Social Affairs and Employment will furthermore ask municipalities in consultation with local migrant organisations to pay attention to poverty and debts among migrants, and any specific bottlenecks they experience in this context. Adequate minimum income Spending cuts and adequate minimum income With respect to spending cuts, the general starting point is that the Government cushions the impact on low incomes, and requests an additional contribution from people with higher incomes. This is evident from, for instance, the partial phasing out of the general tax credit for high incomes, whereas this tax credit is increased for low incomes. This approach is also reflected in the figures. As already indicated in the NRP 2014, the Netherlands is among the five countries together with Latvia, Germany, Lithuania, and Romania with the highest decrease in income inequality in the period between 2008 and 2012 (-10 percent). In fact, the Netherlands is in the top 5 of European countries with a low income inequality. The most egalitarian country is Slovenia, followed by Sweden, Czech Republic, and Slovakia. In Latvia, Bulgaria, Portugal, Spain, and Greece, the differences between the incomes are comparatively large. Senior citizens with small pensions The purchasing power of pensioners has fallen in the period Due to the weak financial position of the pensionfund, they have not been able to index the pensions. However, in terms of poverty risks, senior citizens continued to take a favourable position in The proportion of old age pensioners with a low income is at approximately 4 percent, which is far below the average of 9.4 percent. The figures of the National Institute for Family Finance Information (Nibud) show that, for many households, the purchasing power will rise in 2014, but that senior citizens will be worse off in most cases. Fortunately, single senior citizens who only receive an old-age pension will be better off ( percent) and for couples, the decrease will be limited to percent. Self-employed persons with low incomes The risk of poverty for self-employed persons is affected more strongly by the economic situation, to a significant degree. However, the poverty figures show that the risk for a self-employed person to have an income below the low-income limit during the economic crisis for a longer period of time (four years or more) is lower than that of the total population. In 2012 this percentage has reached the same level (2.7 percent). In the last few years, the civil society organisations explicitly drew attention to the income position of self-employed persons, in particular to those self-employed persons who performed work for people who had formerly been employed in permanent positions at companies. In tackling sham schemes 1, this is one of the aspects for which there is attention. The Minister of Social Affairs and Employment stated in his letter of 11 April 2013 "It is unacceptable that (...) employees are forced to continue as self-employed persons because they would otherwise lose their jobs." Additional instruments for the municipalities The poverty aspect of the NRP 2013 provides a brief description of the social safety net. In addition to these national regulations, the municipalities have different possibilities of providing extra support to people with low incomes (both persons entitled to social assistance and persons who do not receive any social assistance but who have small part-time jobs). Individual special assistance may be granted in those cases where a person has incurred necessary and actual costs that cannot be paid by the person himself or herself. If it concerns a situation in which a person has earned a low income for a long period of time without the prospect of improvement, this individual may be granted an individual income allowance, also referred to as the long-term supplement. The municipalities may furthermore remit local taxes to households with low incomes and low assets. 1 Actieplan bestrijden van schijnconstructies (Action Plan to Tackle Sham Schemes), Appendix to Parliamentary Papers , no

11 Other financial measures that may be taken by the municipalities include exemption from income from employment in cases where this contributes to the integration into the workforce, and the provision of an incentive bonus. The exemption from income from employment relates to 25 percent of the income, with a maximum of 188 euro a month, and during a maximum period of six consecutive months. The exempt amount is not deducted from the general social assistance payment. The incentive bonus may be provided if the person concerned has performed additional activities, and if he has cooperated sufficiently in the opinion of the municipality in his integration into the workforce. Instead of providing extra money, the municipalities may also decide to provide items in kind, this indirectly increasing the spendable income. For example a card to promote participation in sports, cultural, and social activities, and a child package, as advocated by the Ombudsman for Children. Access to high quality services General Results of Eurofound's 2 third Quality of life survey (figures 2011) indicate, among other things, that the Netherlands is one of the countries that scored above the EU27 average on the quality of public services, with an increase, albeit slight, in the quality of these services since The other countries to which this applies are Austria, Luxembourg, Germany, the United Kingdom, and Spain. Eurofound indicated that people, despite the economic crisis, observe an improvement in the quality of public services. The SCP published a study at the end of 2013, looking back on the quality of public services in the period This study shows that, in general, the quality of public services in 2010 was considered good. In all sectors, however, a substantial minority was of the opinion that the quality left much to be desired. In general, users were more positive in their judgments than non-users. The quality of the service provided (the product) is the most decisive for the quality judgment. The process (how the service is provided) and the context (in which circumstances) generally weigh less heavily in the quality judgment. The quality judgments did not change rapidly in the period from 2002 up to and including The changes to the services in that period did not cause major shifts in the judgments. Quality judgments appear to be relatively stable. Nevertheless, the Director of the SCP warned that a social crisis could be possible, which might follow on the economic crisis due to the spending cuts in the services. Debts as an important cause of poverty It is remarkable that the Poverty Monitor 2013 states that the proportion of households with low incomes reporting payment arrears dropped to 15 percent. In 2011, this was still 20 percent. This may be due to the fact that action is being taken more quickly at the stage when debts start to become problematic. (see also the section on Evictions ). On the other hand, more households were forced to incur debts. The survey 'Households into the Red 2012' showed that slightly more than one in six Dutch households (17.2 percent) runs the risk of problematic debts, has problematic debts, or is in a debt counselling process. The largest part of these households (between 719,000 and 961,000) runs the risk of problematic debts. Between 373,000 and 531,000 households have problematic debts. Compared to the previous survey, the number of households having or running a risk of problematic debts has increased. The survey of 2009 estimated the number of households at risk at 788,000 to 999,000. In 2012, the estimation amounts to 1,125,000 to 1,294,000. This reveals that having debts is a major cause of poverty, also among those people who have incomes above the poverty limit. Since July 2012, the Municipal Debt Counselling Act has been into force. This Act makes it possible for people to apply for support from the municipality in order to deal with debt situations that they 2 European Foundation for the Improvement of Living and Working Conditions (Eurofound) is a tripartite European Union Agency, whose role is to provide knowledge in the area of social and work-related policies. 10

12 are not able to solve themselves. Debt prevention and early detection have become an increasingly prominent part of integrated debt counselling by the municipalities. The municipalities are supported in their tasks in many different ways by the Ministry of Social Affairs and Employment. Examples are the development of business cases for an integrated approach to debt counselling (aimed at cooperation in the prevention and early detection of debts); expansion of data exchange, digital Social Card and Mesis screening instrument; the establishment of an Central Digital Register of Attachment and Collection Measures; the development of a government approach to collection; and discussions with various parties, such as the telecommunication sector, on prevention and early detection of telecommunication debts and the role they could fulfil in this, and with the Association of (Prospective) Home Owners, the banks and debt counselling agencies about the increasing number of home owners who get into financial difficulties. Housing costs In the Netherlands, the payability of living in the rented sector is regulated by means of the rent protection and the rent housing allowance. The social rent sector is characterised by a differentiated rent policy. This means that, in some cases, rent increases may depend on the income of the tenants. Tenants with higher incomes may be charged higher rent increases in order to combat the situation whereby people are occupying social housing at a rent that is too low in comparison to their levels of income. The income effect of the differentiated rent policy is, for the lower income groups, modest (-0.5 percent), as any rent increases are compensated for the most part by the rent allowance. Government policy in the owner-occupied housing sector is aimed at preventing buyers from taking risks that are too large, and from running the risk of payment problems as a result. Examples of measures recently taken to this end are the tightened limits for credit provision, the gradual decrease in mortgage interest tax relief, and the tightened conditions for entitlement to that tax relief. As a result of these measures, the monthly housing costs may be higher, but households run less risk, and redemptions ensure that the total housing costs will be lower for households in the long term. For the development of the housing costs into the future, the additional housing costs are important in both sectors. It is particularly important that energy costs do not rise too much and, if possible, are lower in the future. For this purpose, the Government has given a boost to energy saving in built-up environments (Reform Agenda 17 September 2013, Parliamentary Papers ). Evictions It is active policy of the municipalities to avoid evictions. Divosa (Dutch association of municipal managers in the area of participation, work, and income) has made a guide available through the Internet which includes an explanation of the use and necessity of this policy and gives tip-ffs and advice for the implementation of this policy: In order to avoid evictions, housing associations also respond to rent arrears as soon as possible. A survey conducted by Aedes nevertheless shows that the number of evictions rose in This increase emerged from the Aedes survey among 170 housing associations, which together own half the total housing stock of the housing associations. In 2013, the housing associations proceeded to evictions in 6,980 households. Compared to 2012, this is an increase of 8 percent. Rental arrears are an important reason for eviction: 88 percent. Homeless persons In 2012 and 2013, the second phase of the Emergency Accommodation Action Plan agreed between the Central Government and the four large cities (G4) was being implemented. Where in the first phase the focus was still on the provision of emergency accommodation, the focus in the second phase was primarily on prevention and measures to encourage homeless people to move on. This is also observed at the other 39 central municipalities that are responsible for emergency 11

13 accommodation. This way more and more agreements with respect to this target group have been made with cooperating organisations. The number of people who were actually homeless decreased slightly (figures up to and including 2012). In 2012 and 2013, the central municipalities received support for improving the provision of assistance to homeless youths, and the Dutch Homeless Youths Foundation (Stichting Zwerfjongeren Nederland) implemented a programme to strengthen the position of homeless youths with a subsidy from the Ministry of Health. In addition, a large-scale longitudinal cohort study of the effects of aid programmes and client perception is being conducted. Studies have shown that national accessibility to emergency accommodation laid down in law was not properly guaranteed in practice. In 2014, several actions will be launched to improve this situation. In 2014, the above-mentioned Emergency Accommodation Action Plan will end, and will be evaluated. The aim is to also decentralise adjacent policy fields to municipalities by 1 January 2015, including youth care and sheltered accommodation. Attention will be given to which opportunities this will give for prevention, cooperation, and the moving to and from these areas (youth care facilities and sheltered accommodation) and the policy of emergency accommodation. Combating loneliness The Ministry of Health supports the Coalitie Erbij, this is a coalition of volunteer organisations and other organisations established in 2008 with a view to prevent/reduce loneliness (see This coalition organises, among other things, the annual Week against Loneliness, with activities throughout the country. In addition, it shares knowledge and best practices, initiates research, and encourages local cooperation. In 2014 and 2015, the VNG (Association of Netherlands Municipalities), Coalition Erbij, and the Ministry of Health will be implementing a joint action plan to increase long-term attention for the issue of loneliness and for the promotion of a stronger local infrastructure of municipality, volunteer organisations, care providers, and institutions. Changes to the Social Support Act In January 2014, the Government submitted the Social Support Bill to the House of Representatives. Pursuant to this Bill, the municipalities will be responsible for social support. Social support implies the following: the promotion of social cohesion, informal care, and voluntary work; accessibility to services for people with an impairment; promotion of safety and living conditions/quality of life, and prevention of domestic violence; promotion of self-reliance and participation of people with an impairment or with chronic psychological or psychosocial problems; and the provision of sheltered accommodation and emergency accommodation. The Bill gives municipalities much policy latitude to customise social support to the personal situation, the needs, and the possibilities of the client and his social network. The municipalities will also be able to use the policy latitude to gear the range of services better to the services from other domains which are used by the client, such as care, youth care, education, welfare, housing, and work and income. In the event that a person applies to the municipality with a need for support after 1 January 2015, the municipality is obliged to initiate an examination of the client's own strength, needs, personal characteristics, and preferences, as well as the possibilities and impossibilities of the client's social network to contribute to the support. By organising access to support properly, the municipalities will be able to find out what the client actually wants to achieve with his request for support, and will be able to provide targeted support that is geared towards the client's personal situation. By taking a better look at the client's possibilities and his social environment, and by using the general services more often, municipalities will be able to implement the social support more effectively, which will create a more inclusive society, as is also pursued by the UN Handicap Treaty. Under the Social Support Act 2015, it will still be possible for people who qualify for customised services to opt for a personal budget, subject to a number of conditions. 12

14 Support of vulnerable groups by civil society organisations In addition to the efforts made by the Central Government and the municipalities to combat poverty and to promote the participation of vulnerable groups, all kinds of organisations are active in the Netherlands that focus on these issues. The churches publish their own report, Poverty in the Netherlands. The 2013 edition shows that the total number of requests for assistance has increased from 33,963 to 39,481. Out of this number, 32,569 requests were honoured. The total amount spent on combating poverty by diaconal institutions in 2012 was approximately 29.1 million euro; this was 29.6 million euro in In 2012, volunteers committed as many hours to this cause as 950 full-time professionals would do on the basis of a 36-hour working week. The Vereniging van Nederlandse Voedselbanken (Association of Dutch Food Banks) also makes efforts to assist the most vulnerable groups. The food banks stated in a press release of 27 March 2014 that they provided food packages to 27,000 households in This number has meanwhile increased to 35,000 households, which represent 85,000 persons. At the end of 2013, 146 food banks were a member of the Association of Dutch Food Banks, and the food packages were distributed through 475 outlets. In 2014, three new food banks were added. The number of volunteers that is active at the food banks on a weekly basis has increased in one year from 6,500 to 8,300. In addition, various organisations are active in promoting the participation of children in society, such as the Jeugdsportfonds (Youth Sports Fund), the Jeugdcultuurfonds (Youth Culture Fund), and the Stichting Leergeld (foundation aimed to prevent children from experiencing social exclusion). These three organisations receive subsidies from the Central Government in order to support the national support efforts. Many municipalities subsequently cooperate with the local branches of these organisations in order to give children - from families where they cannot afford this the opportunity to participate in sports, to learn how to play a musical instrument, or to participate in a school outing. According to their own statements in 2012, the three organisations together supported approximately 69,000 children. Several organisations, such as the Jantje Beton National Youth Fund, Defence for Children, and Unicef have formed the Kinderrechtencollectief (Dutch NGO Coalition for Children's Rights) that have the Verwey-Jonker Institute draw up the yearly report Kinderen in Tel (Children to be Reckoned with). This data book is sent to all municipalities, and measures the living conditions of children and young persons in the Dutch municipalities (partly also broken down by district). The following themes are addressed: health, juvenile crime, youth unemployment, youth care, children in deprived districts, children in poverty, child abuse, education, teenage mothers, children with a handicap (new theme), and youth participation. The themes have been derived from the children's rights as included in the UN Convention on the Rights of the Child (UNCRC). The Kinderen in Tel 2014 shows the developments in the living conditions of children and shows the differences among the municipalities. Positive downward trends have been found in juvenile crime, teenage mothers, and youth care. The number of children indicated for youth care and AWBZ care has also decreased. The number of infants dying in their first year has decreased as well. With respect to child mortality as well, a gradual decrease was seen in the number of children dying prior to reaching the age of fifteen. The number of children living in poverty has increased, as has emerged from the Poverty Monitor 2013 (see also the introduction to Chapter 2), and this is most prominent in specific regions of the Netherlands where there is also a higher unemployment rate, more poverty, and more children living in deprived districts. In the large cities, too, the consequences of the crisis are felt, but two out of the four large cities are doing relatively well in the area of poor districts. Assistance for vulnerable children Early childhood education For young children at risk of a language delay in the Dutch language, early childhood education is crucial. In the past decade, substantial progress has been made in the course material and the range of early childhood education. The emphasis of the early childhood education policy was initially on promoting the use of early childhood education programmes, then on increasing its range, and from 2010 onwards, on enhancing its quality. The Inspectorate of Education has 13

15 inspected the quality of early childhood education at all playgroups and day nurseries with subsidised early childhood education. The report of this inspection, together with the policy intentions of the State Secretary of Education, was presented to the House of Representatives in August 2013 (Parliamentary Papers , no. 181). The tone of both the report and the accompanying letter was critical; the inspectorate identified bottlenecks around the course material and the preparation of the children for primary school. Parent involvement, internal quality assurance, and the transit from early childhood education to primary schools left room for improvement in all municipalities. In this context, further agreements have been made with the 37 largest municipalities. The Inspectorate will monitor these agreements. The final results of these agreements are expected in Youth Act On 18 February 2014, the Senate also approved the new Youth Act. This new Act implies that as from 1 January 2015, the municipalities will be responsible for all youth services and for the implementation of child protection measures and youth probation and aftercare services. The Youth Act replaces not only the current Youth Care Act (Wet op de jeugdzorg), but also various other components of youth care that currently fall still under the Health Insurance Act (mental health care for young people), and the AWBZ (care for mildly mentally impaired youth). The new Act also includes youth protection and the youth probation and aftercare services. The Ministry of Health, Welfare and Sport and the Minister of Security and Justice, together with the VNG (Association of Netherlands Municipalities), provide support to the municipalities. With the transition of all youth services to the municipalities, it will be possible to improve the care and support provided to the children and families who need this care and support. The use of customised care and support will increase, and more emphasis will be put on, among other things, prevention, own strengths, and the prevention of overtreatment and undertreatment. All this is based on the starting point '1 family, 1 plan, 1 coordinator'. The Youth and Family Centre fulfils an important role in the provision of the parental climate in families and districts and in the realisation of accessible and recognisable youth services. In order to provide assistance to the municipalities in realising this major task, the Youth Transition Authority (Transitie Autoriteit Jeugd, TAJ) has been established. The TAJ must be started by 1 April 2014, or the soonest possible date. The TAJ will come into action when there are indications of the fact that, somewhere in the Netherlands, the care for children and families is at risk because municipalities and care providers have failed to make proper agreements. Child abuse The Ministry of Health has made several guides available for the transition process of the Youth Care, see It also formulated a guide on child abuse. This guide addresses, in particular, issues such as cooperation among cooperating organisations, the range of care and assistance options, management and policy information, Advice and Reporting Centre for Domestic Violence and Child Abuse and Neglect (ARCAN), and the reporting code. The new Youth Act uses the following definition of child abuse: "Each form of threatening or violent interaction (as experienced by a minor child) of a physical, psychological or sexual nature, which the parents or other persons in respect of whom the minor child is in a relationship of dependence or of lack of freedom actively or passively impose on the minor child, as a result of which serious injury is inflicted or threatens to be inflicted on the minor child in the form of physical or psychological injury." With the decentralisation of youth care, the responsibility for the approach to child abuse will rest with the municipalities, more so than in the past. Whereas, up to now, the municipalities were assigned tasks that related, in particular, to the approach to domestic violence and the prevention of child abuse, as from 2015 they will also be responsible for the entire spectrum: prevention, detection, diagnostics, assistance, and treatment of child abuse and domestic violence, and the intersectional cooperation required for the performance of these tasks. Social participation of poor children The Government wants to prevent children from becoming the victim of the financial problems of 14