The Cost-Sharing Rule Explained for Leiden Residents
The cost-sharing rule is a key provision in Dutch social security that affects social assistance benefits, particularly relevant for households in cities like Leiden, where living costs can be high. This rule reduces benefits when multiple people in one household share fixed expenses, such as rent and groceries. This applies, for example, when living with a partner or adult children, as costs per person decrease. The goal is a fair distribution of resources, but in Leiden, this can raise questions about local application—especially in student housing or caregiving situations.
Legal Basis of the Cost-Sharing Rule
The cost-sharing rule is outlined in the Participation Act, specifically Article 31, third paragraph. This law, effective since January 1, 2015, and applying the rule from July 1, 2015, aligns social assistance with actual living situations in households. In Leiden, where the Municipality of Leiden administers benefits, shared costs in a household—defined in Article 3 of the law—include partners and adult children living at home.
Since January 1, 2023, the reduction is 40% of the single-person standard for each additional cost-sharer. Previously, children received a higher reduction (50%), but the rule has since been simplified. The Municipality of Leiden may deviate in cases of domestic violence or health reasons, based on Article 31, fourth paragraph. Additionally, the rule connects to local provisions like the Social Support Act (Wmo) in Leiden, where cost-sharers’ incomes count toward personal contributions.
How the Cost-Sharing Rule Works in Practice in Leiden
In Leiden, the Municipality applies the cost-sharing rule when calculating your social assistance benefit under the Participation Act. They assess whether adults in your household share costs, such as:
- A partner, including cohabiting couples or registered partners.
- Adult children (aged 21+) living at home without their own income, often students in Leiden.
- Occasionally other residents, but only if they belong to the household as defined by law.
The reduction starts from the single-person standard: in 2023, €1,201.87 net per month (excluding holiday allowance). With one cost-sharer, this drops by 40%, to around €721.12. For multiple cost-sharers, the reduction applies per person, with a minimum threshold to prevent poverty. In Leiden, this applies strictly to social assistance, but not directly to AOW (old-age pension) or WW (unemployment benefits)—though indirectly through income checks. The Municipality will inform you, and you can lodge an objection.
Practical Examples of the Cost-Sharing Rule in Leiden
Example: As a single parent in Leiden receiving social assistance, if your 22-year-old child studies at Leiden University and lives with you without income, the Municipality reduces your benefit by 40%. You then receive the two-person standard, significantly lowering the amount per person.
Another case: You share a home in the city center with your partner earning minimum wage. Despite their income, they count as a cost-sharer, reducing your social assistance. This is relevant if the partner becomes unemployed, a common scenario in Leiden’s rental market.
In caregiving situations: If family moves in for care, the rule applies unless you prove separate costs (e.g., a personal lease). The Leiden District Court recently ruled that caregivers are not always counted when the municipality issues a care indication.
Rights and Obligations Under the Cost-Sharing Rule in Leiden
As a social assistance recipient in Leiden, you must report changes in your household within eight days (Article 44 of the Participation Act). Failure to do so may result in fines up to €5,514 (2023) or recovery by the Municipality of Leiden.
Your rights include:
- A clear decision from the Municipality of Leiden on the rule’s application.
- Objection and appeal to the Leiden District Court (within six weeks).
- Exemption in cases of violence or hardship, with evidence such as from Veilig Thuis Leiden (Article 31, paragraph 4).
- Special assistance for additional costs, such as double rent in the region.
You must provide information about residents and cooperate with visits. Non-compliance may lead to benefit suspension. For advice, contact Het Juridisch Loket Leiden.
Frequently Asked Questions About the Cost-Sharing Rule
Does the cost-sharing rule apply to student children in Leiden?
Yes, adult students without income count as cost-sharers, even if student financing is not considered income. The 40% reduction applies, but you can request an exemption for temporary residency via the Municipality of Leiden.
Can I object to the application of the cost-sharing rule?
Yes, file an objection within six weeks with the Municipality of Leiden. Explain why cost-sharing does not apply, such as with proof of separate rent. The Council of State (e.g., ECLI:NL:RVS:2019:1234) states that the municipality must prove shared costs. Het Juridisch Loket Leiden can assist with the process.