Dutch Cabinet Collapse Costs Taxpayers €1 Million in Severance

The dissolution of the Schoof I Cabinet in 2025 resulted in approximately €1 million in severance payments to former ministers and state secretaries, according to reports from the Telegraaf . This substantial expense stems from the unique political circumstances of two cabinet collapses within a short period.

Double Dissolution, Double the Cost

The Schoof I Cabinet, formed in July 2024, experienced a tumultuous tenure, collapsing first in June 2025 following the withdrawal of the Party for Freedom (PVV) led by Geert Wilders, and again in August 2025 when the Modern Social Contract (NSC) also withdrew . These successive collapses triggered severance payments for the departing cabinet members.

Severance Rules and Eligibility

Dutch politicians are entitled to severance pay after leaving their positions to help bridge the gap to new employment. The Ministry of Home Affairs and Kingdom Relations provides an overview of these payments, but does not disclose individual amounts received . The €1 million figure represents the total amount paid out in 2025 as a result of the Schoof I Cabinet’s instability.

PVV Received Larger Share

Given that the PVV initiated the first collapse in June 2025, it is likely that ministers and state secretaries from that party received a larger portion of the total €1 million in severance pay . The NSC followed with their withdrawal in August.

Potential for Increased Costs

The total cost to taxpayers could increase if former cabinet members struggle to identify new employment quickly. The severance pay arrangement allows politicians to receive payments even if their subsequent jobs offer lower compensation than their previous political roles .

Fiscal Calm in 2025, Turbulence Ahead

Despite the political upheaval, the Dutch fiscal policy remained relatively stable in 2025, with most tax measures already legislated . Key tax rates for income brackets (Box 1 at 35.82%), self-employed individuals (zelfstandigenaftrek at €2,470), and assets (Box 3 with a €57,000 threshold and 36% rate) remained unchanged. Business owners also benefited from a reduced high rate of 31% in Box 2. Fuel duties and natural gas taxes were also lowered.

However, the collapse of the cabinet has paused several legislative dossiers, creating uncertainty for 2026 and beyond, particularly regarding reforms to Box 3 taxation .

The Schoof Cabinet: A Brief Overview

The Schoof cabinet, led by Prime Minister Dick Schoof, was sworn in on July 2, 2024, following the 2023 Dutch general election . It was a coalition government comprised of the PVV, VVD, NSC, and BBB, but ultimately proved unsustainable, leading to its premature dissolution.