The tax office is offering some victims of the childcare benefit scandal a one-off payment of €5,000 if they withdraw their formal complaints, broadcaster NOS said on Thursday.

Some 4,700 parents who have been earmarked as “recognized victims” are being offered the payment at a cost to the treasury of €30 million. But families, lawyers and other experts, including senior finance ministry officials, have criticised the scheme, describing it as “unorthodox” and “risky”.

The scandal, which brought down the government in 2021, involved over 50,000 Dutch parents who were incorrectly accused of fraud and unjustly ordered to pay back thousands of euros in childcare benefits by the Dutch tax office.

The cabinet expects to be dealing with compensation claims stemming from the scandal up to the end of 2027.

“The compensation operation has ground to halt and the settlement offer shows how the tax office is struggling,” administrative law professor Herman Bröring told NOS.

Victims of the scandal are first given a payment of €30,000. A more detailed investigation of their cases can then result in a higher payout. The compensation is being offered to families who have rejected the results of the more detailed investigation and are claiming more cash.

Lawyers interviewed for current affairs programme Nieuwsuur said it is unclear if parents have enough information to make a proper decision about the payout. Many do not have their files, for example, and lawyers say this is needed.

Junior tax minister Nora Achahbar, who has been charged with solving the problem, told Nieuwsuur she would be “extremely sad” if the offer is interpreted by parents as a way of buying them off.

People are free to reject the offer if they want to, she said. A similar process has been used in Groningen, where compensation for earthquake damage has also become bogged down. “There is led to quicker procedures and shorter waits,” Achahbar told Nieuwsuur.