A recent Yle survey asked Finns about income-support incentive traps. Respondents reported that income support rules prevented them from saving and planning for the future.
In addition, those surveyed described experiencing financial distress, humiliation over the monthly reports to benefits agency Kela, and confusion about legal terms.
Almost 500 people responded to the poll. The majority of respondents were currently receiving income support, and almost all had received it at some point in the past.
Income support has been criticised as crippling, as a recipient's other income is deducted from the monthly benefit. Aside from wages and salaries, such income includes gifts and loans, as well profits from property sales.
Income support recipients may earn other income or comparable remuneration up to a maximum of 150 euros per month. However, any additional income after that is subtracted from the benefit.
7.5% of population affected
There are quite a few people in Finland whose lives are affected by the rules regarding income support. A total of 417,000 people received basic income from the Social Insurance Institution (Kela) in 2020, covering 288,000 households. This corresponds to 7.5 percent of the country's total population.
The strict rules on income support discourage Mirva Kornilov, who has been a stay-at-home parent for three years, from gradually returning to work.
Kornilov said she would need to declare her fluctuating income to Kela every month, which would then be deduced from her income support.
"I know what kind of show it would start with Kela. It's not worth it," Kornilov told Yle.
Kornilov finds it humiliating that all her bank statements - purchases and bank transfers - are scrutinised by the agency.
As she and several other respondents stated, Kela's interpretation seems to vary regarding which types of income affect the support.
Kornilov herself has found that the agency's scrutiny of applications is more intense in the summer.
"Whether that is because of summer workers, I don't know," Kornilov noted.
Prevent from planning for the future
Survey respondents also reported that the strict rules on income support prevent them from saving and planning for the future.
This is due to the fact that income support recipients must spend their savings and possibly sell their assets to qualify for the benefit.
Additionally, many related that they had refused paid work for fear of losing their benefits.
Income support can also be affected by the regular income of a child under the age of 18, which frustrated respondents. In general, clearing any supplementary money with Kela was seen as a cumbersome task.
Agency has noticed the problems
According to Kela researcher Tuija Korpela, the agency has also noticed the problems in the income support system.
There is a problem in part because many people are forced to rely on temporary income support for an extended period of time.
"It is well recognised that it [income support] is a crippling and discouraging benefit, and it's by no means ideal that people should receive it on a long-term basis, so there is a need for change," Korpela said.