The Dutch right-wing cabinet is cutting spending on tackling problematic debt from 2029, meaning a number of projects aimed at helping people regain control of their finances will have to stop, broadcaster Nu.nl reported on Friday.

News of the cuts comes as junior social affairs minister Jurgen Nobel launched a campaign to warn young people about the risks of “buy now, pay later” schemes, and Amsterdam unveiled its own plans to support families facing financial difficulties.

Nobel said in October that he planned to spend €75 million a year on tackling debt, of which €20 million would go to local authorities to help them identify the families most in need.

Some 700,000 people in the Netherlands are estimated to have problematic debts.

Nobel told Nu.nl that he is optimistic much can be achieved with the funding available. “But it is a cutback and we need to look and see if we have to scale back our ambitions,” he said.

A general election is due to take place in 2028, unless the right-wing alliance collapses before then.

On Thursday, Amsterdam announced a new experiment aimed at helping low-income families. In total, 300 families will receive an additional €150 per month, no questions asked, for two years. €150 is the maximum that families on welfare can receive without affecting their benefits.

Their spending will be monitored and compared with similar households who are not receiving the extra payment and researchers hope the results will help inform national policy. The funding for the trial comes from private foundations.

A similar experiment is already under way in Tilburg and Zaanstad.

Two other projects aimed at supporting families in debt are also ongoing in the Netherlands.

Arnhem city council is to clear the debts of some 40 to 60 families who live in the city’s poorest neighbourhood in a two-year trial to “break the toxic spiral of poverty”. And in Rotterdam, one of the Netherlands’ wealthiest families is to pay off the debts of 1,000 families a year, via its network of charities, “help people get their lives back on track”.

Basic welfare in the Netherlands, excluding housing, healthcare and childcare benefits, is €1,501 for a single person and €2,053 for a couple.