Childcare costs are an attack on the wallet for every family where both parents work. Research shows that 2018 will probably also show an increase in childcare costs as a result of the IKK Act. We explain why, but first a bit about the costs of childcare now, the quality of childcare and the IKK law. The IKK law has recently been approved and will come into effect on January 1, 2018.
Table of Contents
Of course there is enough to say about the costs of childcare. In general, users of childcare think the costs are too high and estimate that a large part of their earnings is spent on childcare.
Statements from counterparts vary, for example, from 'You wanted children yourself' to, 'Then you should stay at home'. A rather succinct reasoning, since many families today consist of two-income couples, out of financial necessity.
The average costs for childcare in 2017 are €7.18 This is also the maximum amount for which you will receive childcare allowance. Does childcare cost more? Then you will no longer receive a surcharge from the government on the difference.
The rate you pay for childcare can vary. Differences depend on, among other things:
Read also: incidents at childcare
The quality of childcare varies enormously. I experienced this myself. Last year Emma attended two childcare centers for one day a week and three days a week with a childminder. That guest parent was great, but I also think that it is better to estimate that in advance than a daycare center.
The first daycare center (a large and nationally well-rated chain), I was out of it in '5 minutes'. Unkind staff and as many children as possible in one group. With an apology every now and then because they forgot a sleeping baby somewhere.
Emma was first in the early-child group with two different faces per week, then in the daytime group, with a new face every now and then, and lastin the poor-kids-who-last-by-hurried-parents. -be-collected-group, with again two different (grumpy) faces every week.
After this she went to an anthroposophical nursery. Small-scale, organic, with only four groups, soft colours, natural materials, and a beautiful garden. Also important; always the same faces on the groups. Loving, patient people who really magically created a peace, even though they were with 12 children and two supervisors on 80m².
These leaders can tell me at the end of the day what my baby's day was like. And whether she has eaten and slept well, for example. It is a bit more expensive, but the quality is worth it to me. Of course it becomes different when you simply don't have the money…
Fortunately, there are quality requirements from the government that all daycare centers must meet. The IKK Act further contributes to this.
Rules for the quality of childcare are extremely important. The House of Representatives considers this so important that a law has now been voted in favor of tightening these rules even further:the Innovation and Quality Childcare Act. These are the main points of this law:
Sounds good of course, but what will this cost?
Cost according to government
The House of Representatives has based its approval on a calculation of the costs. It is estimated that this will cost 83 million. Based on this, the rate may increase by about 32 cents. Then we will go from €7.18 to €7.50 per hour of childcare costs in 2018. This will also increase the maximum rate for the childcare allowance.
Costs according to Branch organization Childcare
However, a completely different picture emerges from the study by the Childcare Branch Organization. This large-scale survey was conducted at approximately 800 locations of various sizes and from 135 different municipalities, so it is fairly representative.
The financial benefits of the BSO relaxation (1 in 12 instead of 1 in 10) are disappointing. BSOs have no space or enthusiasm for more children , and can therefore no longer generate turnover when the rules relax and they are allowed to have more children.
The estimation of the costs of the extra staff and other types of grids are very disappointing. The stricter requirements for childcare laid down in the IKK Act make it very difficult especially for small locations † For them, the impact is greatest and the rate will increase relatively more in order to meet the requirements. This does not sound illogical, small reception locations can shift less with the division of groups and the staff present than large organizations.
Long story short, the estimate should be at least 163 million, instead of 83 million, according to this research. And that would mean that the hourly rate an average of €7.71 will have to be done to ensure that childcare centers can continue to exist.
If the government does not raise the maximum hourly rate of the childcare allowance sufficiently, this will have enormous consequences for the wallet.
The table below has been prepared on the basis of the tables for the BSO in the IKK research report of the Childcare Branch Organization. It is assumed that there is a small advantage of the new arrangement for the BSO, which means that they can charge a slightly lower rate. The table that assumes no benefit for the BSO had an increase of 61% for the minimum group!
Group of parents2017 net hourly rate – after childcare allowance2017 net hourly rate IKK – after childcare allowanceIncreaseParents with minimum income€0.66€0.8529%Parents with average income€0.97€1.1519%Parents with 3x average income€4.12€4.181%
The article actually says nothing at all about the consequences of this arrangement for the waiting lists at childcare. It seems to me that in many locations there is simply less space for children, so that the waiting lists will become longer.
There are usually fewer waiting lists for the BSO, but they should in principle go faster (if there is enough space at a BSO).
Read also: benefits of childcare at home
It's great that the House of Representatives wants to allocate money to improve childcare. It is, however, worrying that the Childcare Sector Organization concludes that the budget allocated does not ensure that the new requirements that apply can be met. And they are hard requirements, not guidelines, so nurseries must adhere to them.
The biggest question now is:who pays for the difference?
Image used via Shutterstock
