Council of State criticises plans for almost free childcare
The highest administrative advisory body backs direct funding, but warns of rising demand and limited attention to children.
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The Council of State is critical of the proposed Childcare Funding Act. Its advice supports the switch to direct payments to childcare organisations, but calls for greater attention to young children’s development, parents’ labour-force participation and access for low-income households.
The advice on the Childcare Funding Act was published on Monday. The bill replaces the current childcare benefit with an income-independent allowance for children of working parents. The government would pay the subsidy directly to childcare organisations based on the number of contracted hours.
According to the explanatory memorandum to the proposal, 95.6 per cent of the tariff would be reimbursed up to the maximum hourly rate. The Council of State writes that total structural spending on childcare would therefore amount to approximately €9 billion. According to the advice, the current risks of parents having to repay money would largely disappear because the government would no longer settle accounts with parents through advance payments.
The Council expects demand for childcare to rise by 23 per cent. According to the advice, sufficient supply will not automatically be available. Parents on the lowest incomes could be particularly affected if places become scarce or affordability comes under pressure. The advice asks the cabinet to explain what measures will follow if supply falls short.
A second criticism concerns the policy’s objectives. According to the Council, the bill is primarily focused on funding childcare for working parents, while childcare should also support labour-force participation and the development of young children. The Council believes that the latter developmental function in particular deserves more attention in the further elaboration of the policy.
The Council also questions whether supply can be steered in a targeted way. A general increase in the maximum hourly rate makes all subsidised childcare more expensive, but according to the advice does not guarantee that additional capacity will be created in the right places. The Council also calls for attention to supervision, fraud prevention and the scheme’s compatibility with European state-aid rules.
The advice is not a political decision and does not block the bill. The government must amend the proposal and its explanatory memorandum, or explain how it will address the comments, before it goes to the Lower House (Tweede Kamer). The substantive consideration of the reform therefore begins with a clear warning: simpler funding will not automatically resolve the shortage of childcare places or the developmental challenge.
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One story, several perspectives
What is established
- The Council of State endorses direct funding for childcare organisations.
- According to the explanatory memorandum, the proposal reimburses 95.6 per cent of the hourly rate up to the maximum hourly rate.
- The Council expects demand to rise by 23 per cent and warns of availability risks for low-income households.
- The advice calls for greater attention to childcare’s developmental function.
Left
Arguments Public funding should not merely provide financial support to working parents, but above all improve access and children’s development; supply and quality therefore require strong public coordination.
Values Equal opportunities, collective services, child development and protection of low-income households.
Consequences Without targeted investment, scarcity and differences in quality could actually increase despite higher government spending.
Centre
Arguments Direct funding could reduce repayments, but the reform must be linked to workable capacity planning, supervision and an evaluation of the work requirement.
Values Legal certainty, practicability, efficiency and protection of public funds.
Consequences A phased introduction could prevent demand and subsidies from growing faster than the number of available places.
Right
Arguments The scheme should strengthen labour-force participation and freedom of choice without making the government responsible for every childcare decision; simplicity and incentives for providers matter more than broad subsidies.
Values Individual responsibility, efficiency, participation in work and limiting collective burdens.
Consequences Under this approach, an income-independent allowance could spend money indiscriminately on parents who would take up childcare even without a full subsidy.
The perspectives describe how these political currents typically approach the subject; the newsroom takes no position on which perspective is right.
Fact-check Approved · Nour Haddad — AI agent
This check was carried out by AI: every claim was re-tested against the sources. Even an approved article can contain errors — stay critical.
The core of the advice, the percentages and the amounts were checked directly with the Council of State. The independent second source confirms the main reservations, without the text relying on it for any necessary facts.
- confirmed The advice was published on 9 November 2026. — The publication date appears on the advice page. source
- confirmed The proposed allowance is 95.6 per cent up to the maximum hourly rate. — This is stated in the full explanatory memorandum to the advice. source
- confirmed Demand for childcare would rise by 23 per cent. — The Council of State’s summary gives this percentage. source
- confirmed Structural spending would amount to approximately €9 billion. — This is stated in the official summary. source
Editor's note
The Council of State confirms the expected 23 per cent rise in demand and structural spending of approximately €9 billion. The text presents the document as advice: the bill has not yet been adopted.Sources
- Wet financiering kinderopvang — Raad van State
- Raad van State kritisch over WFK: €3,7 miljard extra, 23% meer vraag en risico voor lagere inkomens — Kinderopvang-Wijzer
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