ABN: Parents Suffer From Higher Childcare Costs

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ABN: Parents Suffer from Higher childcare Costs. Childcare companies have to raise prices due to higher costs.

 

The government has budgeted an additional 250 million euros for the childcare allowance,

 but this is not enough to compensate for the increase of the expenses,

 write economists from ABN AMRO in a report on Wednesday.

“In other words, the parent is the victim and pays more,” said ABN AMRO economists.

The companies must think of the need to raise prices because of higher quality requirements.

For example, a caregiver could previously take care of four babies of zero years of age, but these are now only three babies.

“In other words, there must be more staff or fewer babies must be hired.”

“The entrepreneurs have their hands in their hair.

More staff means higher costs and fewer babies means lower sales,” write the economists of ABN AMRO.

Childcare centres must sustain higher costs with a higher hourly rate.

Last year, this hourly rate rose by 3 percent to an average of 7.40 euros.

The maximum reimbursable price is 7.45 euros per hour.

But in city areas, the hourly rate for childcare is 1.2 percent higher than the maximum payment for parents.

For out-of-school care, the hourly rate is even 4 percent higher than the maximum reimbursement.

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