More than 260,000 households in Finland received social assistance benefits in 2023, according to a fresh report from the Institute for Health and Welfare (THL).
The benefit payments amounted to nearly 800,000 euros in 2023.
Paid out by social insurance agency Kela, social assistance is a last-resort form of financial aid.
According to THL's report, the benefit most often went to people who live alone, and especially to men in that situation. The report said that young adults between the ages of 18 and 24 were overrepresented among social assistance benefit recipients.
THL said that the increased need for such benefits was due to prolonged unemployment. Additionally, the agency noted that recipients often have health issues.
Prime Minister Petteri Orpo's (NCP) government programme calls for comprehensive reforms of the social assistance system, and aims to halve the number of people receiving the benefit.
A Ministry of Social Affairs and Health working group has called for the benefit to be further reduced, unless recipients fulfill certain obligations, including applying for jobs.
The agency's report suggested three ways that Finland could reform the social assistance system, with an aim to underscore its purpose as a last-resort benefit.
1. Housing allowance supplement
The ministry working group has suggested creating a supplement to existing housing allowance benefits. It would be an income-tested benefit paid out to low-income households to cover reasonable costs.
In a press release, THL said that a housing allowance supplement would clearly underscore the important role housing costs play in people's finances. It said that while creating such a benefit would inherently increase housing allowance spending, it would also reduce the number of people receiving social assistance.
"In the long term, it could affect housing policy," Paula Saikkonen, THL research manager, said in the release.
2. Healthcare payment caps
THL's second point in the matter concerned healthcare payment caps. After a person spends a certain amount on healthcare services, they become free of charge.
The working group has suggested that the payment caps should be monitored automatically and digitally. Currently, monitoring the cap is left to the patients paying the bills.
The World Health Organization (WHO) has also recommended automation of the healthcare payment cap system.
3. Consultations with young adults
According to the working group, young adults receiving social assistance who are also obliged to apply for further education should be compelled to contact Kela — or a designated youth service provider — after receiving the benefit for four consecutive months. Exceptions to this rule would affect those serving in the military or attending school.
The plan would involve preventing young adults who do not fulfil the obligation from applying for further social assistance.
According to Tuija Korpela, a Kela researcher, compelling young adults to contact Kela or a youth service would offer opportunities to discover why they are receiving the benefit.
Korpela said that reaching young people is difficult, particularly when they have received social assistance for extended periods.
"It would also make it easier to direct [young people] to the right services," Korpela said in the release.