Childcare

The past few years saw considerable change in the childcare sector. Whereas in 2005 375.000 children made use of a childcare facility, their number had increased to 882.000 in 2010. The number of childcare facilities has doubled over this period. There is public concern about commercialism and the growth in scale within the childcare sector. The number of childcare providers is steadily growing. Does this not affect childcare quality?

Growth in scale

Mr Kamp asked the Netherlands Bureau for Economic Policy Analysis (CPB) to examine the working of the childcare market in the Netherlands. The major conclusion of the CPB report is that commercialism and growth in scale do not affect childcare quality. On average, providers with a higher turnover score higher on quality aspects. Therefore, CPB does not see any reason for drastic change in the current childcare system.

Supply

New childcare facilities are set up especially in places where they are most needed, for instance in the big cities. At local level the number of providers has increased also, but for parents, childcare options remain limited. Moreover, parents are slow to change childcare facilities once they have made an initial choice. This provides  market power to the entrepreneurs, who can raise prices or lower their quality without parents running away immediately.

Competition

The fact that parents have few options limits competition in the market, according to CPB. However, CPB expects growing competition due to the government's cutbacks on childcare allowance. However, more competition does not automatically mean better market performance: CPB concludes in its report that the educational quality is not transparent to parents.

Transparency

The CPB report has prompted the minister to take a number of measures in the area of childcare. A new website, for instance, enables parents to compare price and quality of childcare facilities, which increases transparency. By means of a ministerial regulation the minister aims at gaining transparency in the financial situation of childcare facilities.

Right of complaint

The minister would like to enhance the position of the parents by simplifying the right of complaint and by setting up a dispute settlement authority, which can take binding decisions. Moreover, the minister intends to introduce the provider's statutory obligation to annually publish the complaints he has dealt with, per childcare facility. Finally, the minister prepares a bill which implies that, as of 2013, parents will no longer have to pay for hours during which they cannot make use of the childcare facility, because it is closed or because their children are still in school.