Finland has not succeeded in reducing poverty in families with children, according to the UN Children's Fund, Unicef. In its latest comparison of efforts against child poverty, Finland only ranked 14th whereas in previous years, it was in the top five. The study ranked 39 countries on progress in eradicating child poverty between 2012 and 2021.
Finland's poverty level has remained at around 10 percent since 2012. The risk of poverty for children in single-parent families is the highest in Finland among the 39 comparison countries from the EU and OECD. Unicef's latest Report Card was published on Wednesday.
Poverty affects school performance
The situation is worrying, according to Sanna Koskinen, a senior expert on child-friendly governance at Unicef.
Poverty experienced in childhood affects not only a child's immediate well-being but also has impacts long into the future, she noted.
"Previous studies show that poverty significantly increases the risk of poor school performance," Koskinen told Yle.
The latest Pisa test scores show that students’ socioeconomic background has a significant impact on learning outcomes.
According to Unicef, the consequences of poverty can last a lifetime. "Children who experience poverty have less chance of completing school and earn lower wages as adults. In some countries, a person born in a deprived area is likely to live eight to nine years less than a person born in a wealthy area," the report said.
Unicef's comparison took into account both the share of poor families with children in each country's population and the change in that share over the years. Compared to other countries, Finland has the third lowest level of child poverty.
However, Finland's ranking was lowered by the fact that its poverty level has remained around 10 percent since 2012. The risk of poverty for children in single-parent families is the highest in Finland among the 39 comparison countries.
"Finland is not in such a strong position that it no longer needs to reduce child poverty," declared Koskinen.
In her view, the policies of Prime Minister Petteri Orpo’s NCP-led government will exacerbate the situation.
"The social security cuts proposed by the government will have serious effects on the well-being of children and young people," she predicted.
According to Koskinen, research shows that social security plays a significant role in combating child poverty.
Without social security benefits, Finland's child poverty rate would have been almost 30 percent in 2021, estimates Unicef.
Orpo's government plans to cut 1.5 billion euros from social security. The parliamentary Social Affairs and Health Committee approved the government's proposed cuts in social benefits on Monday.
Last summer, the UN Committee on the Rights of the Child urged Finland to avoid cuts in social benefits that would "affect children at risk of poverty and marginalisation".
According to Koskinen, the government did not take the call seriously enough.
Expert: Work does not replace social security
The government says that social security cuts are necessary due to Finland's economic situation. According to the Minister of Social Security Sanni Grahn-Laasonen (NCP), employment is a better way to combat inequality and poverty than social benefits.
Koskinen pointed out that a job does not necessarily protect against poverty.
"We must remember that almost half of the parents of poor families have jobs. Employment policy is important, but it’s not the only way to counter poverty," she said.
The Unicef comparison defines relative income poverty as the proportion of people who earn less than 60 percent of the average income.
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