The financial situation of many households will look better this year than in 2022. This is reported by the National Institute for Budget Information (Nibud), which sees the purchasing power of some households increase by more than 8 percent. Nevertheless, this year uncertainty will continue to hang over the market about inflation and the energy bill, among other things.
Nibud assumes an inflation rate of 3.5 percent in its calculations, a level previously calculated by the Central Planning Bureau. Households benefit from this inflation, ranging from 0.5 percent to 8.1 percent, depending on family composition and income. In some cases, households lose 0.2 percent in purchasing power based on this inflation level.
The improvement in purchasing power is partly due to the fact that working people have more salary left over as a result of a higher employed person’s tax credit. As a result, they pay less tax. In addition, many people receive a pay rise from a new collective labor agreement, according to Nibud.
Prices in the supermarket remain high
The financial situation of the unemployed is also improving because benefits, social assistance and care benefits have been increased. “All these measures provide some financial breathing space that most people desperately need, because in 2022 everyone will have had to give up considerably and prices in the supermarket will remain high,” says the budget advisor.
And so more things that played a role last year will also be felt in the wallet this year. For example, the rise in energy prices. Nibud therefore advocates that personal circumstances and expenditure “play a greater role in making policy”, because “few households will be able to tolerate even more price increases”.
“If we have learned anything from the energy crisis, it is that people living in energy-inefficient homes or large families are forced to spend more on energy than others. As a result, they may have more difficulty making ends meet than others with the same income,” concludes Nibud director Arjan Vliegenthart. If it is up to him, people should also be given more security. “Important basic and utilities must remain accessible and affordable for everyone, now and in the future.”
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