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Bankruptcies rise in childcare sector

Tuesday 15 January 2013

Cuts in the childcare budget led to six times as many bankruptcies of childcare centres last year compared with 2011, the Algemeen Dagblad reports, using figures from the Chamber of Commerce.

In 2011, 12 pre and after-school daycare centres went bankrupt. Last year the figure reached 73. In addition, 400 of the 2,200 centres are in financial difficulty.

The bankruptcies are mainly the result of government cuts, but a further factor is that parents are removing their children from the centres altogether or leaving them on fewer occasions because of the uncertain economic situation, says the AD.

The government is planning a further cut of €205m from the childcare budget this year, but employers, unions and parents' organisations say this should not go ahead.

Have you stopped using daycare? Use the comment box below to share your experiences

© DutchNews.nl


Readers' Comments

Good for them, they ripped us till the bones by charging us 13.10 euros per hour for 2 children !
that's more than 150% the minimum wage here in the NL !

By bird | 15 January 2013 9:34 AM

without subsidy this is the expected result.
For mothers to work the cost of childcare has to be significantly less than her net salary otherwise why do it??
The cost of day care can be calculated - hire of premises + cost of personnel divided by the number of children and then a small profit.
20 children with 2 carers should not cost more than Eu300 per month per child.
Other countries allow co-ops where mothers work 4 day per week and spend 1 day helping in the creche this is better economics

By nd | 15 January 2013 10:10 AM

God forbid that someone who is responsible for your child's safety all day long should earn a whopping 150% of the lowest mininmal wage, huh bird? What comes around goes around - saying 'good for them' because they went bankrupt, and being angry at having to pay 150% of minimum wage for your own child's care will surely find its way back to you.
Its sad for me to see all these cuts and jobs in care being lost, especially when they involve the children or the elderly. Very sad and also alarming regarding the future.

By B | 15 January 2013 10:21 AM

Cut for childcare is another anti families measures. Very soon, we will all be controlled by people who are anti families.

By ufo | 15 January 2013 10:32 AM

how they can go bancrupt if they charge a fortune???

By mariya | 15 January 2013 10:50 AM

Its ridiculous how much child care costs in this country. I love NL, but come on give parents a break here! Childcare should be affordable and of high quality for everyone

By sarah | 15 January 2013 10:50 AM

Many people are already unofficially paying trusted friends to mind their children.

When times become difficult and people are let down by the system, they always manage to find a way around the problems, whether legal or illegal. (Example: black taxis in Amsterdam for about €3, - 'catch me if you can'. ;) "V"

By The visitor | 15 January 2013 12:29 PM

Something's not clear to me: childcare services ask for that huge amount of money AND get public funding?
Why the hell they're so expensive then?

By Massimiliano | 15 January 2013 1:06 PM

Massimiliano, childcare organisations don't get public funding directly. They charge the parents the full amount, but the parents can get a part of that money back from Belastingdienst. And the full amount is huge, in my case €1800 for 2 children, one in daycare, the other in after school daycare, for 4 days! My family gets back from taxes approximately half of this sum. What I don't understand though is why it has to be so expensive, when for example in Germany taxes are pretty much like here, but you pay much, much less for daycare. Where does the tax money go?

By marko | 15 January 2013 3:02 PM

@B. Maybe you should realize that 12,5 per hour is PER CHILD and not the salary.

By Neo | 15 January 2013 3:09 PM

Thank you very much Marko for your explanation. Obviously, every government holds a (relative) autonomy in deciding how to spend their tax-collected money, as well as very different means (in economic terms, and depending on so many things)...in Italy public childcare isn't a "universal" welfare feature, while the overall tax burden is even higher. Indeed it's alarming to see such basic welfare provisions desertified, especially for children and elderly.

By Massimiliano | 15 January 2013 3:34 PM

Is au pair the other option? The TV stated that the filipino au pair was only paid 300euro a month. Those agencies must be making big money now.

By ufo | 15 January 2013 3:55 PM

I have two kids, one in childcare, the other at afterschool. The costs are huge, however the moment I will have to pay even more than I am currently paying, that very moment I will remove my kids from the childcare. Simple as that. I will not work for free! It is not fare to give this blow to this economic sector! Cutting jobs is not the way to get a prosperous economy!

By Felix the cat | 15 January 2013 4:23 PM

We have our child on childcare. The standards (Partou) are very high. I want the staff to be we'll paid. I don't want stressed out staff with financial problems. I want quality, not a shortcut. Let them 150% of the min wage . min wage is for unskilled work, and the ladies in the crèche are very skilled and worth every penny.

We shall keep our child in the crèche for as log as possible - He loves it there!

By me | 15 January 2013 4:53 PM

@me - so you take partou's average group - 10 kids * 1500 EUR month (attending 5 days a week) you come at pretty 15000 for 2, maybe 2,5 adult shift work. sounds like it's some private doctors' or financial advisors' office not creche. each nanny maybe gets some 30k a year (which is normal salary for their qualification). so where does the rest go?

By not me | 15 January 2013 11:11 PM

I do not understand why childcare is very expensive in this country. If they do not take action, NL will loose lot of working women. It is not worth working anymore. May be we should organize a protest against Government.

By J | 15 January 2013 11:55 PM

We will soon not only loose lot of working women, but we will also be in the situtation that couples would not like to have children anymore due to the expenses, so this will affect our future economics as well and we will become an old country without children. Very sad!

By KO | 16 January 2013 8:44 AM

@J: sadly, the current conservative culture in NL is to have women at home raising children, not taking men's jobs.

The cost of childcare is a direct cost to go to work. A business would deduct such an expense off their pre-tax turnover and not pay any tax on this part of the turnover. I think the general public deserves the same right. Level the playing field between the populace and the businesses.

By H. | 16 January 2013 8:57 AM

Finally somebody making sense. I have never seen a more obedient nation as the Dutch, they just take everything being shoveld down their throats with no objections. Of course people sould protest, make petitions and push politicians to adopt more social friendly measures. It's ridiculous how less benefits are being offered to the working citisens as compared with the huge amount of taxes paid. Dutch people - get organized and work as a nation, not as scattered egocentric individuals, you might benefit from it.

By DMC | 16 January 2013 9:48 AM

J and DMC - forget about the Dutch organizing any sort of protest (m.u.v. - Greenpeace NL ;) Think more along the lines of complaining about it a whole lot and no real action against it being taken, this has been my experience after living here nearly 20 yrs.

By B | 17 January 2013 9:54 AM

I think what we will consider when my daughter is a little bit older is that she goes with a school friend to their house one day and they go together to our hours another day. Basically alternating this...she's now almost 7 and I'm really glad we have the really expensive creche years behind us. I think in just a few years she can go home by herself after school. The after school care is actually very good though. She loves going there...

By Chris L. | 17 January 2013 12:48 PM

Protest, in The Netherlands, is frowned upon, one is considered an anarchist, we have had it so good for a long time, and because of excessive liberalism, and equality, only concerning a few, we have become introverted and selfish. The 1970's - 1980's were the last time people were together in protest. We now live with our heads buried in our laptops and I-Phones and we prodominately communicate electronically. We are, no longer, connected in a human way, and only defend our own when, it is only absolutely necessary, we are fragmenting as a society and, unfortunately, the quality of our politicians reflects our rapid social demise. The head in the sand mentality of the Dutch is surprising!

By Highlander | 17 January 2013 3:17 PM

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