The caretaker government has scrapped plans to cut the state pensions of elderly people who move in with their children, the Volkskrant said on Thursday.

The rule change had been due to come into effect in 2019, after being delayed several times. Critics argued that the plan to reduce pensions to 70% of the single person’s pay-out was an effective tax on the elderly who’s children are willing to look after them rather than put them in a home.

The cut would have been around €300 a month. Ministers defended the measure at the time, saying the elderly share costs, such as the rent and electricity bills with their children.

The principle of cutting benefits if adults share a property is being applied to parents  claiming welfare benefits who share a property with adult children who also claim welfare.