Warnings around consequences of Dutch Education Budget: 'Severe damage for the Netherlands if proposed policy is implemented'

In a letter to the Permanent Committee for Education, Culture, and Science (OCW) of the Lower House, VNO-NCW and MKB-Nederland expressed their concern about the proposed policy measures in the OCW budget 2025. The business organizations fear that these plans will significantly damage Dutch earning capacity and future prosperity. The letter comes, not coincidentally, at a time when colleges and universities nationwide are organizing protest demonstrations.

One of the critical points in the letter is the stagnant growth of labor productivity in the Netherlands. According to the Organization for Economic Cooperation and Development (OECD), productivity growth in the Netherlands between 2012 and 2022 was only 5.3 percent, while the EU average was 9.6 percent. VNO-NCW and MKB-Nederland emphasize that education and research are crucial for stimulating productivity growth. They therefore call for improvements in basic skills, excellent education, and closer cooperation between educational institutions and business.

Unification

At the same time, VNO-NCW and MKB-Nederland express concerns about the plans to combat the “Englishification” of higher education. While the organizations acknowledge that the Dutch language is essential for the cohesion and culture of society, they point to the negative economic consequences that a severe restriction on English-language courses could have. “English-language programs play a crucial role in attracting international students and talents,” the organizations argue. These students contribute to knowledge development and often stay in the Netherlands, which is essential given the tight labor market.

In addition, business organizations warn that the focus on reducing English proficiency could damage the international image of the Netherlands as a knowledge and innovation country. Universities and colleges are key in maintaining ties with global companies and research networks. VNO-NCW and MKB-Nederland stress that a reduction in English-language programs could weaken Dutch knowledge institutions' competitive position and thus make attracting foreign investment more difficult. This effect would affect not only higher education but also the broader economy and employment in innovative sectors.

Practical learning

The proposed cut in the Practical Learning Subsidy Scheme (SPL) is of specific concern. From 2030, the budget for this scheme will be structurally cut by €11.9 million, leaving €220 million. The SPL is intended as an allowance for the costs incurred by companies for training students in the vocational training route (BBL) or the dual route in higher vocational education. VNO-NCW and MKB-Nederland regret that the scheme is not adjusted so that each company or healthcare institution receives an equal amount per year during all years of the dual apprenticeship-work route. They point out that an apprenticeship costs a company an average of €12,000 annually, while the subsidy varies between €2,000 and €2,500. Especially for smaller companies, this subsidy is essential to provide apprenticeships.

Digital skills

The organizations support the announced Education Quality Recovery Plan, which focuses on improving literacy and numeracy in primary and secondary education. However, given the increasing digitalization of society and the labor market, they urge that digital skills be added to this plan. In addition, they highlight the importance of sufficient and quality teachers as a prerequisite for the success of this mission.

With regard to intermediate vocational education (MBO), VNO-NCW and MKB-Nederland applaud the effort to train students for sectors with strategic shortages and future social tasks. However, they stress that the current funding system does not provide incentives for promising study choices, cooperation between institutions, or an efficient educational offering. The organizations call for a revision of this system to better match the labor market's needs.

Adjustments

The business organizations conclude that the proposed policy measures in the OCW budget could seriously damage Dutch earning capacity and future prosperity without adjustments. They call on the Lower House to consider these concerns when negotiating the budget and make the necessary adjustments.