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More cash for low earners, support for energy bills and e-car purchases

Flemish PM Jan Jambon (nationalist) has detailed the support his administration will provide to Flemings feeling the pinch amid the cost-of-living crisis.  Next year’s budget contains a raft of measure that should make life easier and more affordable.

Colin Clapson
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A hundred euros extra in job bonus per year for the lowest earners

To increase the difference between working and not working, the government is increasing the job bonus. This is a grant that people receive annually on top of their wages. Until now, anyone earning up to 2,900 euros gross was eligible for it. Next year, that will become everyone earning up to 3,000 euros gross, and from 2025, 3,100 euros. Around 1.1 million Belgians will then be able to claim the bonus.

The bonus varies per employee. The less you earn on average, the higher the bonus. The government is increasing the bonus for everyone who qualifies for it. For the lowest earners, the government is raising the bonus to €650 next year and €700 in 2025, instead of €600 now. Everyone entitled to the bonus - it does not matter exactly how much you earn - will also get an extra 50 euros, both this year and in 2024 and 2025.

Energy bills

The share of your electricity bill that flows to the Flemish government will not increase next year. This includes distribution and transmission costs, for example, which now amount to around €150 a year. That does not mean that your energy or electricity bill in general cannot increase next year. It depends on the price charged by suppliers and federal levies and taxes.

A government commitment to renovation grants should help to achieve a structural reduction in energy bills. Current support for insulation, work on roofs and windows as well as the installation of heat pumps will be extended for another year. Normally, the amount would be phased out from January 2024 onwards, but that is now postponed for one year at least.

Up to €5,000 grant for electric car purchases

The government is introducing a new grant system for electric cars. Any citizen can claim it. Not-for-profit organisations and providers of share cars can also claim the grant.

You will receive the grant if you buy an electric car that costs a maximum of 40,000 euros. For new cars, the premium will be 5,000 euros next year, and 3,000 euros for second-hand cars. After that, the premium will be phased out year by year. For new cars to 4,000 euros in 2025 and 3,000 euros in 2026. For second-hand cars 2,500 euros in 2025 and 2,000 euros in 2026.

More childcare places and fewer children per minder

The Flemish government is investing an extra 270 million euros a year in childcare. Both group childcare and childminders who take care of children in their own homes will receive extra support.

The 270 million euros serves mainly to provide more staff per child. The government wants to bring down the so-called minder-child ratio. Today, Flanders has an average of eight or nine babies and toddlers per minder; this ratio must eventually be lowered to 1 supervisor per 5 children in groups with only babies, 1 supervisor per 8 older children and to 7 children in mixed groups.

There will also be extra investment in availability to help parents looking for a place for their offspring. An additional 5,000 places will be created.

The government is also introducing the status of "logistics worker". These extra staff should support child minders so that they can focus more on caring for children.

The government is investing an extra 105 million a year in education. Part of the money will be used to further tackle the teacher shortage. People entering the profession from other jobs will be able to take 15 years of seniority with them, as opposed to 10 years today. This should make it more attractive for people from another sector to make the switch to teaching.

The government is also investing an extra 15 million a year in teacher training. It wants to raise the bar there too, so that training produces better teachers. There will also be extra funding for technical and vocational secondary education and higher education. There is extra money for student facilities, colleges and universities too.

Extra cash will also go on pupil transport in special needs education. The government wants a pupil to spend a maximum of 90 minutes on the bus, but this is not yet the case for everyone.

Additional affordable student digs

The government is investing 226 million euros to build an additional 3,300 affordable student digs. The measure is intended to reduce the shortage of affordable student housing. The rent on a basic room costs an average of 350 euros per month.

To build these digs, the government will enlist the help of housing companies, which are also responsible for social housing. Colleges and universities will be responsible for allocating and renting basic rooms and operating the system.

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