Proposed changes to Finland's social assistance benefits system would require recipients to actively seek full-time work, with reduced support if they fail to do so.
The proposals were outlined in a memo published on Wednesday by a working group of public officials preparing a comprehensive reform of the social assistance benefit.
Social assistance (toimeentulotuki in Finnish) is a last-resort financial benefit provided when wages or other income are insufficient to cover living expenses. The benefit is intended as short-term support for unexpected situations.
The suggested reform aims to reduce long-term dependence on the benefit and reinforce its last-resort nature. Suggested measures include stricter sanctions to push recipients toward other benefits or employment services.
The working group suggests that, for instance, the basic social assistance allowance could be cut by 50 percent if the recipient fails to register as a full-time job seeker after being prompted.
Part-time workers, those running unprofitable businesses, or students without access to student support would also be required to register as full-time job seekers.
Government wants €70 million in savings
The working group's proposals are based on the Petteri Orpo-led (NCP) government's goal of reducing the number of social assistance recipients by half, aiming to strengthen public finances by 70 million euros.
To achieve the savings, the working group proposes including small incomes — such as tax refunds, monetary gifts, and parental contributions — in the calculation of social assistance eligibility.
Currently, recipients can earn up to 150 euros per month without affecting their social assistance. The working group proposes removing this exemption, as it has not shown a significant impact on employment. This change could save an estimated 20 million euros annually, the group estimates.
The working group also suggests reducing the amount of the basic social assistance allowance and notes that the Finnish constitution does not necessarily prohibit such a change.
An example in the proposal suggests that a 1 percent reduction in the basic allowance could save 12 million euros, while a 4 percent reduction could save 48 million euros.
In 2023, social assistance was granted to 263,000 households and 387,000 individuals, representing seven percent of the population.
The number of recipients has been increasing, and cuts to other benefits are expected to increase the demand for social assistance. The Finnish Institute for Health and Welfare (THL) estimated that these cuts could push approximately 100,000 people into applying for social assistance.
The working group’s proposals have not yet been discussed at the parliamentary level. The government is expected to present the full reform proposal in the spring, with the changes potentially taking effect as early as 2026.
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