Controversy over plan to reduce benefits for young disabled people

In May 2008, the Minister for Social Affairs and Employment proposed to reduce benefits for young people with a disability who are capable of working. The minister recommended that, from 2010, people in this category should be given suitable employment, supplemented by 70% of the minimum wage. The minister’s proposal, however, has been strongly criticised by left-wing supporters in the Dutch House of Representatives, as well as trade unions who are seeking job creation measures rather than benefit cuts.

Background

In April 2008, a report published by the Central Planning Office (Centraal Planbureau, CPB), one of the government’s most important advisory bodies, revealed that the proportion of young people with a disability who are seeking benefits under the provisions of the Disability Insurance (Young Disabled Persons) Act (Wet Arbeidsongeschiktheidsvoorziening Jonggehandicapten, WAJONG) almost doubled between 2001 and 2006. The CPB report warned that if policy remains unchanged, the number of disabled young people claiming such benefits is likely to increase even further in the years ahead. Moreover, according to the Administrative Institute for Employee Insurance Schemes (Uitvoeringsinstituut Werknemersverzekeringen, UWV), which administers schemes for young disabled people, at least 300,000 young people will seek recourse to such benefits by 2040.

Based on the findings of the CPB report, in May 2008 the Minister for Social Affairs and Employment, Piet Hein Donner, proposed to reduce benefits amounting to 75% of the minimum wage for disabled young people who are capable of working. The minister proposed that, by 2010, people in this category should be given suitable employment supplemented by 70% of the minimum wage.

More proactive measures sought

In the recent CPB report, several approaches were suggested to increase labour market participation among young people with disabilities, lowering their influx into the WAJONG benefit scheme. For example, increasing the quality and effectiveness of practical training and special secondary education could raise the productivity of disabled young people with employment potential. At the same time, offering trainee placements and encouraging people in this category to complete training with a modified initial employment qualification could help satisfy the information requirements of potential employers regarding the employment potential of disabled young people. Moreover, making municipalities responsible for implementing the different schemes could increase their efficiency. For employers, measures aimed at increasing uniformity and simplification could reduce the costs of employing young people with a disability.

CPB supports the Social and Economic Council (Sociaal Economische Raad, SER) in its 2007 recommendations that efforts directed at helping disabled young people to take up suitable positions should be improved. According to CPB, a compulsory quota system should be imposed if employers appear unwilling to employ young disabled people. Based on these findings, the Minister for Social Affairs and Employment, Piet Hein Donner, drafted a proposal in which he mainly considers benefits as a means of encouraging or forcing disabled young people to take up work. Conversely, those who are opposed to this plan attach far greater importance to efforts focusing on finding suitable employment for such individuals.

Strong opposition to lowering of benefits

In the Dutch House of Representatives, the Labour Party (Partij van de Arbeid, PvdA), which is also part of the government coalition, the Green Left (GroenLinks) and the Socialist Party (Socialistische Partij, SP) adopted a united position, strongly opposing the proposal to lower benefits under the WAJONG scheme for disabled young people who are capable of working. The three parties believe that priority should instead be given to helping young people with a disability to find suitable employment and on encouraging employers to employ such individuals. To this end, the government has already reached agreement with the employers and trade unions during the spring consultations.

The Christian Trade Union Federation (Christelijk Nationaal Vakverbond, CNV) believes that the number of jobs available is too small and that only a relatively small proportion of disabled young people are claiming benefits under the WAJONG scheme. CNV is calling on the government to invest in job creation rather than imposing cutbacks, since reducing earnings does not create employment. Together with the other trade union federations, agreement has been reached with the central employer organisations – united under the Labour Foundation (Stichting van de Arbeid, SvdA) – on the need for a concerted effort to find ways to employ disabled young people on benefits. CNV is also urging the government to create jobs particularly for individuals who require major adjustments in the workplace. The trade union federation would like to see a more decisive approach taken, including the issuing of job guarantees.

Minister readjusts proposals

Minister Donner partially withdrew his proposal to reduce benefits in response to the criticisms. However, while benefits will not be lowered, the minister is proposing that two thirds of disabled young people who are new recipients of benefits under the WAJONG scheme must be in employment from 2010. At the same time, a pilot initiative is due to be undertaken whereby the municipalities will take responsibility for implementing schemes for young people with disabilities, instead of the national implementing body, the UWV. The latter proposal was advocated by PvDA and put forward in the report published by CPB.

References

Central Planning Office, Verdubbeling van de instroom in de Wajong: oorzaken en beleidsopties, CPB Document 158, The Hague, CPB, April 2008.

Social Economic Council, Meedoen zonder beperkingen: meer participatiemogelijkheden voor jonggehandicapten, The Hague, SER, August 2007.

Marianne Grünell, Hugo Sinzheimer Institute (HSI)