Finnish government parties divided over reinstating unemployment benefit earnings disregard

Calls to restore the earnings disregard in Finland’s unemployment benefits are gaining support within the governing coalition, though Prime Minister Petteri Orpo has firmly rejected the idea, Yle reports.

The Swedish People’s Party of Finland (RKP) is pushing to reverse the government’s April 2024 decision to abolish the 300-euro earnings disregard, which previously allowed unemployed individuals to earn limited income without reductions to their benefits. RKP chair and Education Minister Anders Adlercreutz argues the change has failed to achieve its goal, as part-time workers have not transitioned to full-time employment and some young people now refuse low-paying jobs due to benefit cuts.

Support for reinstatement has also emerged from within Orpo’s National Coalition Party. Deputy chair Pia Kauma proposed conditional restoration of the disregard on social media, but Orpo dismissed the idea as her “private opinion,” insisting that unemployment cannot be solved through benefit policy alone.

Pressure has further increased after a Ministry of Education and Culture working group recommended reviving the earnings disregard in a report on restoring young people’s faith in the future. The opposition has long demanded the return of disregards, which were also removed from general housing allowance and social assistance earlier this year.