Kela proposed cuts to child benefits and housing support for pensioners. Photo: Heikki Saukkomaa / Lehtikuva
- Next Article Yle: Residents leaving state-backed housing – Finland prepares to scale down ASO system
The Finnish government has decided not to implement proposed cuts to pensioner housing support and child benefits, despite recommendations from the Social Insurance Institution of Finland (Kela).
The proposals were submitted at the request of Sanni Grahn-Laasonen, Minister of Social Security. Kela’s memorandum included several cost-cutting suggestions, such as merging pensioner housing support with general housing support, adjusting child benefit distribution, and limiting compensation for certain health services.
According to information from Yle and Helsingin Sanomat, Prime Minister Petteri Orpo’s government will not proceed with the housing or child benefit reductions. The decision comes after a series of welfare adjustments earlier in the government’s term.
General housing support has already been reduced. Students were removed from eligibility during this term, and pensioner housing support faced cuts in the spring 2024 spending framework. Further reductions were deemed excessive.
Kela estimated that merging pensioner housing support with the general scheme would save €290 million annually. The plan would remove approximately 47,000 recipients from eligibility. These include 13,000 pensioners living in owner-occupied homes, as the general scheme does not apply to such properties. Another significant share would lose support due to assets exceeding €50,000.
Yle reported that government
Source: www.helsinkitimes.fi
