Through the benefits system, over €20 billion is paid out annually to about 10 million people in the Netherlands. The system is complex. The consequences of changes in the living situation on entitlement to benefits are not always foreseeable. Some of the most pressing bottlenecks in the current benefits system occur within the partner concept for benefits (benefits partner concept). The State Secretary of Finance proposes to simplify the benefits partner concept from 1 January 2027.
Compound families criterion dropped
The criterion classifying two adults at the same address with a minor child of one of them as an allowance partner will be dropped. This often led to unwanted partnerships, for example in the case of informal carers or house-sharing. As a result, an estimated 10,000 citizens will no longer be unintentionally classified as benefits partners. In the new situation, they will receive the same benefits as single persons, which can save thousands of euros per year. This simplifies the benefits partner concept for citizens and the Benefits Agency.
Payment partnership in previous year and rest of year removed
The criterion, which classifies people as benefits partners because they were each other's benefits partners in a calendar year and live at the same address in the following year, will be removed. The criterion that people, who are benefits partners for part of the year, are considered partners for the rest of that year will also be dropped.
Exception for displaced persons from Ukraine expires
The exception, which does not count displaced persons from Ukraine as co-residents for the purpose of rent allowance, will be dropped. From 1 January 2027, their income and assets will count when calculating the host household's rent allowance. This normalises their legal position and is in line with the aspiration that they participate and co-pay according to their ability.
Minors not an allowance partner
Henceforth, no allowance partnership arises when at least one of the partners is a minor. This avoids financial problems for minor parents who would otherwise miss out on the single parent cap in the child-related budget. As soon as the younger partner comes of age and they are still living together, an allowance partnership still arises.
Lowering asset limits care allowance and child budget
To cover the costs of the simplification measures, the asset limits for the healthcare allowance and the child budget will be lowered. On 1 January 2027, these limits will fall by almost €30,000. This reduction affects about 50,000 households who will lose their entitlement to one or both benefits as a result.