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The Dutch Tax Scandal

Municipalities: too much abuse of the compensation scheme for the benefits affair

Friday, March 22, 22:53 Municipalities: Too much abuse of the compensation scheme for benefits. Municipalities are too burdened with settling the benefits scandal, says the Association of Dutch Municipalities (VNG). Local authorities are obliged to “generously” compensate all alleged victims, but officials sometimes run into a bind of conscience because there are people who abuse compensation schemes. Currently, anyone who reports to the municipality is automatically entitled to help. But Peter Heijkoop wants that to stop. He is an alderman in Dordrecht and speaks on social affairs on behalf of the VNG. Claims from people without children Heijkoop sees a doubling of claims. Sometimes they are justified, but sometimes these claims come from people who later appear not to be victims at all. There are even cases of people who have no children at all, it later appears. However, municipalities must also help them. “Because the agreement is: when people sign up, we have to support them.” In addition, according to the VNG, some “allowance parents” make unreasonable demands on municipalities. Heijkoop speaks of a “claim culture” where people apply for expensive flying holidays or overseas family visits. This leads to frustration among officials. The VNG does not criticize VNG's position and precise figures, but it would involve hundreds of unjustified claims throughout the Netherlands. However, that is only a fraction of the total number of claims. Should the VNG then sound the alarm? No, says Kristie Rongen. She is a victim of the benefits affair - became known from her debate in 2021 with Prime Minister Rutte - and believes that the VNG is now far too short of a curve. “Comments like this are really not going to help.” She believes that after everything that has happened, the government should not be reluctant in any way when it comes to compensation. “You just can't do this. Parents have a helping hand, a fresh start. Once again, these comments feel like distrust.”Since 2021, municipalities have had a role in the recovery procedure for the benefits affairs. While the State is focusing on financial compensation for past mistakes, municipalities are trying to give victims a bright future in terms of, for example, their living situation or career. Municipalities receive 65 million euros annually for this. They should use that “generously”. When the municipalities were ordered to help, it was estimated that there would be more than 8,000 victims throughout the Netherlands. 34,000 people have now been officially classified as victims. A total of 68,000 people registered as victims. Whether they are actually all of that remains to be investigated.Paul Boogaard also supports the VNG's call. He is an alderman in the South Holland municipality of Hoeksche Waard, where around 130 families say they are victims of the benefits affair. He would like to compensate “generously”, as the assignment reads, but his officials find it “extremely difficult” to determine how generous that should be. Bike or car? An example: an alleged victim of the benefits affair has no money to transport to work, 7 kilometers away. One municipality gives him a used bike, the other municipality buys him a used car. “Municipalities are allowed to act autonomously,” says Boogaard. “But within that group of victims, there is - quite rightly - a discussion about how the municipalities deal with their problems.” The alderman says that he sometimes has a knot in his stomach when he has to decide what someone is or is not entitled to. For example, there was someone who couldn't afford a new washing machine. That person asked for a copy of a specific brand with a new price of 2000 euro. “Then, as a civil servant, you can also think: I have a 1000 euro washing machine at home and it works great too.” Just like Heijkoop, Boogaard is therefore also in favour of stricter guidelines for municipalities. Even if it's just to combat the polarization, as he calls it, within the group of victims. “This is really a traumatized group and it is precisely here that clarity would help enormously. You'll only live in a municipality where people are very generous, move to another municipality and then end up in a regime where you have to choose the cheapest possible washing machine.”The Allowances affair: from a multi-million dollar operation to a billion-dollar operationNumber of households in debt due to surcharges doubled in five yearsOfficials warned of 'massacre' with surcharges as early as 2012'Compensation for parents and benefits affair could just last until 2030'

Date
23 April 2024
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