Calculate childcare allowance

Service Surcharges

The 'Calculate Childcare Allowance' algorithm uses allowance rules to calculate the entitlement and amount of the allowance. This is done with data on and from the applicant, his/her possible allowance partner, the child and the childcare hours and hourly rate.

Last change on 19th of July 2024, at 14:24 (CET) | Publication Standard 1.0

• Publication category: Impactful algorithms
• Impact assessment: DPIA
• Status: In use

General information

Theme

Social Security

Begin date

11-2011

Contact information

[e-mail]

Link to publication website

https://www.belastingdienst.nl/wps/wcm/connect/nl/kinderopvangtoeslag/kinderopvangtoeslag

Responsible use

Goal and impact

It is the task of the Benefits Agency to ensure that citizens who apply receive the childcare allowance they are entitled to. The purpose of the algorithm is:

• To quickly, efficiently and consistently grant the right to childcare benefit for around 0.7 million households.
• That the applicant can immediately view the latest version of the childcare benefit calculation.

The algorithm assesses the application for childcare benefit. The algorithm determines whether there is entitlement and how high the allowance will be. Throughout the year, an advance payment is made. After the end of the year, based on income and childcare data, the allowance is finally calculated. If the algorithm fails to perform the assessment automatically, it can ask for help from an official.

Considerations

The advantage of using an algorithm:

• Efficiency and speed: the algorithm works automatically. This allows the Benefits Agency to efficiently process millions of childcare benefit applications quickly;
• Consistency: the algorithm provides an approach that is always the same which reduces the risk of errors and/or discrepancies;
• Traceability: by using the algorithm, the benefit calculation is automatically recorded, making it easier to track and control the decision process.

An official will manually review the application in case of missing data, technical errors or as part of an audit.

Human intervention

An official will manually review the application if there are missing data, technical errors or selected supervision by an official. If necessary, the applicant will be contacted to get the missing data. This new data is again given to the algorithm so that the algorithm can complete the assessment automatically. If necessary, an official can also calculate the childcare allowance manually.

Risk management

• Risk management and safeguards

For algorithm development, the Surcharge Service has created conditions: a quality framework. This contains rules and agreements that are followed when developing the algorithm. The conditions come from the National Audit Office and are guiding. The algorithm has determined the business rules through laws and regulations. These business rules are constantly tested and maintained so that we remain compliant with laws and regulations and political wishes. If something changes in an algorithm, Dienst Toeslagen checks whether it still meets the quality requirements.

• Equality, non-discrimination and privacy

When using data, Dienst Toeslagen adheres to the General Data Protection Regulation (AVG). The AVG prescribes that no more data may be used than necessary. This is called data minimisation. The Benefits Agency regularly examines whether the data used are still necessary and may therefore be used. If this is not the case, the algorithm is adjusted and data are also no longer used.

• Profiling

The algorithm only uses data listed under the data heading. The use of data is monitored to prevent profiling that is not allowed.

• Right of access

Citizens have the right to see the information collected about them. They can also make a request to have this information amended.

Legal basis

The legal basis and the use and collection of data is regulated by the General Income Support Act (Awir) and the Childcare Act. For more information see https://wetten.overheid.nl

Impact assessment

Data Protection Impact Assessment (DPIA)

Operations

Data

The use of data is tested against the General Data Protection Regulation (AVG). The following data are required when applying for and calculating childcare allowance:

• the applicant's personal data;
• the personal data of any partner;
• the personal details of the child attending childcare;
• the (estimated) income per household member;
• the work requirement elements (work, student, pathway to work, integration)*;
• type of care (day care, out-of-school care or guest parent care);
• cost of childcare (hours and hourly rate of childcare).

* If there is a partner who is in detention or has a Wet langdurige zorg (hereinafter: Wlz) declaration, the work requirement need not be met. This data is requested (Wlz) or supplied by the citizen himself (Detention).

Links to data sources

Zie 'Wie gebruikt mijn gegevens' in het Besluitenregister voor een detail overzicht van de gegevens die bij de kinderopvangtoeslag gebruikt worden: https://wiegebruiktmijngegevens.nl/besluit/23514283

Technical design

The Childcare Allowance Act stipulates that citizens can apply for and change childcare allowance if there is reason to do so. Using the data and the Awir, the algorithm calculates the right to and the amount of childcare benefit. Once all final income and childcare data are collected, a final settlement is made and shared with citizens.

In addition, reasonableness checks are applied to protect both citizens and the administrator from unintentional errors and their possible consequences.

In some situations, the application cannot be assessed automatically. Then an official does the processing of the application manually (see human intervention).