The House of Representatives is concerned about the consequences of the sharp rise in inflation for the purchasing power of households. The left-wing opposition, but also the PVV and independent MP Pieter Omtzigt, are calling even louder to raise the minimum wage even more next year, to ensure that the most vulnerable people can keep their heads above water.
On Budget Day, the outgoing cabinet still assumed that purchasing power would, on average, change little next year, assuming an unchanged personal situation. Since then, however, inflation has risen sharply, partly due to the sharp rise in fuel and energy prices. People really feel that in their wallets.
At the request of the House of Representatives, State Secretary Dennis Wiersma has calculated what the purchasing power pictures will look like if inflation does not reach 1.8 percent next year, as estimated by the Central Planning Bureau (CPB) in September, but at 3.4 percent. In that case, purchasing power falls by an average of 1.4 percent.
The new figures, however fictitious, hit the MPs who are debating the budget of the Ministry of Social Affairs on Tuesday. “I don’t like to sign that,” sighed VVD MP Judith Tielen. But when asked whether she would like to participate in repair measures, such as an increase in the minimum wage or allowances, she referred to the formation table.
Tielen is willing to see whether there is “any room to be found” to prevent these “bad predictions” about purchasing power from coming true. She pointed out that measures have already been taken to remove the sharp edges of the increase in energy bills. But she warns that this has financial consequences. “It also has to come from somewhere.”
CDA MP Hilde Palland also hopes for purchasing power measures in a new coalition agreement, although she emphasized that “steps have already been taken”. For example, a “substantial amount” has been set aside to compensate families for the rising energy bill, while adjustments are still being made to allow that aid “to land as specifically as possible with people with a small budget”.
House concerned about the consequences of higher inflation for purchasing power
Source link House concerned about the consequences of higher inflation for purchasing power