Child benefit in the Caribbean Netherlands does not cover most of the expenses of raising children. It reimburses about 23 to 36 percent of the costs parents face. Parents within the understand receive another supplementary allowance. Child benefit and welfare allowance together cover 33 to 52 percent of children’s expenses.

The cost recovery of the child allowance differs between the islands of Bonaire, St. Eustatius and Saba. This is partly due to differences in price levels. Parents on Saba, due to the higher price level, spend relatively more money on child care, making cost recovery on this island the lowest. Cost recovery is also influenced by family composition. Older children often involve relatively more costs than children under 12. In addition, larger families are more likely to be able to reuse items and the fixed costs per child are relatively slightly lower.

The above conclusions emerge from an analysis conducted by Economic Bureau Amsterdam on behalf of research firm Indigo Blue. Indigo Blue conducted an evaluation of the child allowance provision in the Caribbean Netherlands on behalf of the Ministry of Social Affairs and Employment. In this study, Economic Bureau Amsterdam focused specifically on the cost-effectiveness of the child benefit provision. The full report can be read here.