The Outgoing Cabinet is Introducing Clear Rules for When Childcare Will Become ‘Almost Free’ in 2029. In The New System, Parents Will Only Pay a Small Portion Themselves, While the Rest Will Be Directly Reimbursed to The GOVERNERSED.
The Rules Are Being Drawn Up to Prevent Prices from Skyrocketing or Companies From Making Unreasonely Large Profits. For Example, the sector Will Fall Under The Top Incomes Standards Act, which will prevent excessive Salaries for Directors, Outgoing State Secretary for Social Affairs Jurgen Nobel Announced on Monday.
“Childcare is Becoming Almost Free for Working Parents. Especiate Now That The Government is Investing So Much More, This Tax Money Must Go to Them,” Says Nobel. “At the same time, entrepreneurs are the driving force behind our good childcare. That is why we are ensuring that they can continuously to do business and continuous to make sufficient profits.”
Actually, The Intention was that childcare would Become Almost Free as Early AS 2027. That was postponed by two years in April. The Two-Year Postponement Temporarily Saved the Cabinet Billions of Euros.
The ChildCare Allowance Will Disappear and Repayments Will Soon Be a Thing of the Past. “Now Parents Still Receive An Advance via The Childcare Allowance,” Explains a Spokesperson for the Ministry. “In The Future, The Government Will Pay the Money Directly to the Companies. Then the rules will be different again, which is why we are also drawing up new rules.”
Accordance to the cabinet, this provides more financial security for families, make work pay better and gives childcare organizations a more stable basis. The Bill Will Be Official Presented Next Month.
Plans Require A Significant Investment
The Plans do Require A Significant Investment: While the Government Now Spends Around 6 Billion Euros Annually, That Amount Will Increase To Around 9 Billion Euros in the Future. That money must really benefit the parents, nobel emhasizes in a letter to parliament.
The Implementation Will Happen Step by Step, because the Demand for Childcare is Likely to Increase Significantly. This is to prevent waiting lists from growing and prices from coming under pressure. Meanwhile, work is Being Done to Reduce the Staff Shortage.
For Middle Incomes, The Costs Are Already Significantly Lower Thanks To The First Measures That Were Implemented This Year. Municipalities are also Given More Opportunities to Reimburs The Own Contribution of Parents with a Low Income.