February 4, 2023

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The majority of interest on purchasing power subsidies ends in 2023, but the government is committed to phasing it out

The majority of interest on purchasing power subsidies ends in 2023, but the government is committed to phasing it out

The government has tried to ease the pain of the 2022 crisis as much as possible with billions of dollars in aid to citizens, but says it cannot afford it for much longer. People in the country, especially those who have a limited budget, are worried about it.

The majority (61%) are worried that long-term government support will end. This was shown by research conducted by EenVandaag among more than 28,000 opinion panel members.

Cabinet is gradually ending support

Although life will still be more expensive for people in the country for now, Finance Minister Sigrid Kaag issues a profit warning about help from the Cabinet.

To prevent hard cuts, the Cabinet will have to make tough choices next year, she told EenVandaag. According to her, it is not easy to pay for the new subsidy packages, and may even harm the economy: “The drop-down list is very important.”

Prime Minister Mark Rutte, Minister Sigrid Kaag (Finance) and Minister Carola Schouten (Poverty Policy) respond to the group study.

“Cup down in another winter”

The prospect of the government eventually stopping compensation is particularly troubling for people who can’t make ends meet. No less than 87 percent of them dread that moment. There is also a significant concern among people who save net money: 76 percent.

Fears of stopping government aid

Only people who can reasonably or well make ends meet understand whether government support will end in 2023. People on a tight budget, on the other hand, don’t quite understand: “I don’t have to think about that yet,” he says. Someone says. “Even with the government’s help, I really had to tap into my savings. Another winter like this and I’m going to go down.”

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Pessimism about next year

Respondents are not optimistic about the coming year. People are still somewhat positive about their personal situation, but only 16 percent think that 2023 will be a good year for the Netherlands.

Striking again is the huge discrepancy between people who say they have enough left and people who are struggling financially. The majority of groups are pessimistic about the Netherlands, but they think fundamentally differently about their own situation. 82 percent of people who make ends meet have a positive expectation of it, compared to just 17 percent of people who can’t make ends meet.

A bad omen for the future

Prime Minister Mark Rutte doubts the Dutch will still feel the consequences of high prices for now. β€œThe numbers from the calculators say they will be with us for a while,” he told EenVandaag.

A large group of respondents also believes that the current hit to purchasing power is a bad omen for the future. Three-quarters (77 percent) believe that the standard of living in the Netherlands will decline permanently in the coming years.

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Get used to low prosperity

“We were very lucky to be born Dutch, but now we are faced with borders on all sides,” explains one of the panelists. However, the majority (58 percent) consider themselves able to get used to the lower standard of living.

But for some people, the shift comes at a critical time, like this panelist: “I don’t know where I can cut back further. Because of my husband’s death, my income has fallen by more than half, and my fixed costs keep going up.”

information

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about this researchThe survey was conducted from December 13-29, 2022. 28,353 members of the EenVandaag Opinion Panel participated in the survey. After weighting, the research represents 6 variables: age, gender, education, marital status, distribution across the country, and political preference according to the 2021 parliamentary elections. The opinion body consists of more than 80,000 members.