“People in debt don’t notice higher wages and benefits”
The increase in benefits and the minimum wage on January 1st will not be immediately noticeable to many people in debt. Social counselors who help people with debt warn of this.
The minimum wage will rise 10 percent in January due to increased energy costs, meaning benefits will rise too. The social counselors point out that the extra money for people with debt usually goes directly to the creditors.
The minimum amount that people with debt need to live, the so-called garnishment exemption, is not automatically adjusted. This happens once every twelve months. A request for recalculation can only be made after January 1st.
Incidentally, there is an exception for recipients of social assistance, because the garnishment exemption is automatically increased there.
Huge operation
“With energy prices soaring and food prices soaring, this is a very undesirable situation,” says André Moerman of the National Organization for Social Counselors (LOSR). While the extra money is used to reduce debt, there is no extra money available for monthly fees.
People in debt who earn minimum wage or who are on welfare can petition themselves to increase the garnishment-free rate, but if everyone does it, it’s a huge operation, Moerman says. According to the UWV and the social insurance bank, there are wage garnishments for 60,000 beneficiaries. Bailiffs also urge people who get into trouble to contact them themselves.
The social advisors are demanding an automatic increase in the garnishment exemption for everyone from the Ministry of Social Affairs. The ministry, in turn, says the LORS plan sounds benign but needs further study. For example, it raises questions about implementation, bureaucracy and how to deal with different income levels.
energy compensation
Moerman also fears that people in debt will not immediately notice the €190 energy offset paid in November and December. Energy companies have the opportunity to use this 190 euros for any payment arrears.
“That wasn’t what was promised when the Prinsjesdag plans were announced,” said Moerman.
Source: NOS
I’m Jamie Bowen, a dedicated and passionate news writer for 24 News Reporters. My specialty is covering the automotive industry, but I also enjoy writing about a wide range of other topics such as business and politics. I believe in providing my readers with accurate information while entertaining them with engaging content.
