From 2029, childcare will be nearly free for working parents. The State Secretaries for Participation and Integration and for Recovery and Benefits have launched an online public consultation on the draft law, inviting feedback on the plans. The new funding system simplifies childcare costs and gives parents financial certainty, while phasing out the childcare allowance to prevent high repayment demands.

Nearly free childcare by 2029

Over the next few years, the government will gradually increase childcare subsidies so that, by 2029, childcare will be nearly free for all working parents. This means parents will no longer lose part of their allowance if they work extra hours, making work more financially rewarding. The government will also simplify the childcare system, ensuring greater security and predictability for parents.

Greater financial security for parents

Currently, parents receive an advance payment but may later face unexpected repayment demands. Under the new system:

• The government will pay subsidies directly to childcare providers, eliminating the need for parents to apply

• Parents will no longer receive uncertain advance payments or face retrospective repayment claims

• All working parents will receive the maximum reimbursement rate of 96%, regardless of income. This will encourage parents to work more hours

Childcare organisations will also benefit from stable funding, with government contributions rising to around €9 billion per year. The Benefits Service will implement the new system.

A gradual transition

To manage increased demand, the government will phase in the changes and support the sector in addressing staff shortages, for example, by training group assistants to become qualified childcare workers. The new system will also reduce administrative burdens for providers, with extra support for smaller organisations during the transition. 

Efficient use of public funds

The government will increase childcare funding significantly but has set conditions to ensure proper use of public money:

• Designating childcare as a service of general economic interest (DAEB): This ensures subsidies benefit parents by improving quality and availability while complying with EU state aid rules

• Limiting senior salaries: The Standardisation of Top Incomes Act will apply to childcare organisations to prevent excessive pay for senior staff. This ensures public funds support better childcare services, such as staff wages, training, and facilities, rather than inflated salaries

• Maintaining business freedom: Childcare providers will retain the flexibility to invest in quality while avoiding excessive bureaucracy.

The government will work closely with the sector to tailor the DAEB rules, minimising administrative burdens. Childminders will be exempt from these regulations.

For more information: https://www.rijksoverheid.nl/actueel/nieuws/2025/10/17/wetsvoorstel-voor-bijna-gratis-kinderopvang-openbaar

Source: Eurydice Unit Netherlands