The Netherlands Labour Authority regularly investigates the status of municipalities' implementation of debt assistance. As a result of the Covid-19 crisis, vulnerable groups are additionally affected in terms of employment, income and participation opportunities. These include young people, flex workers, entrepreneurs with few financial reserves and children and young people in families living around the poverty level.
Poverty and problematic debt are expected to increase further for these groups. In the coming period the Labour Authority will look into how municipalities support these groups in times of crisis. The focus here is on not having to use general benefits and the range of facilities for people on minimum incomes.
Key points policy document for debt assistance
In September 2020, the Labour Authority published a key points policy document for debt assistance (Dutch). The document summarises insights from studies conducted over the past 5 years on the implementation of the Municipal Debt Assistance Act. Despite the changed circumstances resulting from Covid-19, the recommendations in the key points document remain valid. In his response to the key points document, the state secretary pledged to include these recommendations in the development of the Broad Debt Approach.
Implementation of debt assistance
In 2019, the Labour Authority investigated the state of implementation of municipal debt assistance. Among other things, the report describes how debt problems are resolved and to what extent those involved are financially resilient afterwards. Those with debts expressed how pleased they would be if those debts were finally cleared. They spoke to the advisers about what is needed to ensure that the process goes well, especially if no progress is made for a while. The Labour Authority sees room for improvement in debt assistance in the broad sense, aimed at sustainably improving people's financial capability. Further cooperation in the social domain presents opportunities there.
View our report A closer look at the provision of debt assistance (Dutch).
Access to debt assistance
In 2016, the Netherlands Labour Authority looked into which people receive municipal aid to clear their debts and which people are turned down. The results of this survey show that almost all municipalities make an individual decision on whether or not to offer someone debt assistance. There also emerged a number of focal points to improve implementation. The results and possible areas for improvement have been brought to the attention of municipalities. In 2017, the Labour Authority conducted a follow-up investigation.
View our report Access to debt assistance 2017.
Timely identification of people in debt
In 2014, the Labour Authority investigated the timely identification of people with problematic debts. The 2015 research report found that almost all municipalities have a method of identifying people in debt, but there is room for improvement there.