Long-term unemployed woman fears losing her home after housing benefit cuts

A highly educated long-term unemployed woman in northern Finland is struggling to survive on less than €600 a month and fears she may soon be forced to sell her home, public broadcaster Yle reports.

The woman, identified only as Mia to protect her privacy, is among those affected by the government’s decision to end housing benefits for owner-occupied homes at the start of 2025. Before the cut, she received around €120 monthly in housing support for her mortgage-free house.

“Everyone tries to force you to move into a rental and rely entirely on social assistance,” Mia said. She argues the system now penalises homeownership, offering higher support only to those who rent.

Mia, 56, has been unemployed for over a decade after leaving her former partner’s business. Despite holding two university degrees, she has found few job opportunities in her field. She currently earns a small income from occasional teaching work, paid just twice a year to avoid losing benefits.

Her monthly unemployment support, after taxes, leaves her with less than €600 to cover all expenses. Finland’s low-income threshold for a single-person household in 2024 was around €1,500 per month.

Mia bought her current 1950s-era house—purchased at a low price due to its poor condition—using funds from selling her previous home during the energy crisis. She installed a ground-source heat pump and a large wood-fired oven to reduce heating costs, but renovations remain unfinished due to lack of funds.

Though she enjoys the independence of homeownership, she admits her savings—now down to €15,000—are the only reason she can still afford to stay. “Without savings, I wouldn’t manage,” she said. Yet those savings disqualify her from receiving additional social assistance.

Experts confirm the policy shift pushes low-income earners toward rental housing. Pasi Moisio, research professor at the Finnish Institute for Health and Welfare (THL), notes that before the change, only about 4–5% of housing benefit recipients owned their homes. The reform aimed to target support more tightly at the lowest-income households.

Jarkko Rasinkangas, a social work lecturer at the University of Turku, warns that such cuts risk trapping long-term unemployed homeowners in areas with few job prospects, unable to relocate because they cannot sell their properties.

Mia remains determined to keep her home for as long as possible. “I’d rather tighten my belt than sell,” she said. But she acknowledges the day may come when she has no choice.