Combating Childcare Allowance Fraud and Sanctions

The childcare allowance supports parents with working status. Fraud, such as fake contracts or unused childcare, results in repayment demands and fines. The Tax and Customs Administration conducts checks through foundation audits and data linking. If fraud is detected, repayment is required along with a fine of 30-100%, depending on intent. Criminal prosecution may follow for amounts exceeding €20,000. Following the childcare benefits scandal, stricter reporting obligations apply: changes in address or income must be reported immediately. Parents must provide proof of registration with a childminder agency. Parents with debts can apply for debt restructuring. Municipalities offer budget management services. Prevention: verify your allocation annually. High fraud rates (up to 15%) justify vigilance. Rights: the obligation to be heard and the right to appeal in court. Victims of erroneous terminations received compensation. For entrepreneurs: the hours criterion is strictly enforced. Maintain records for audits. This protects honest users and prevents misuse of the €2 billion subsidy.