Demand for discretionary income support rises sharply across Finland

More people in Finland are requiring additional discretionary income support as economic pressures and social welfare cuts take effect, according to a survey by national broadcaster Yle.

Nine of the country’s 21 welfare regions anticipate a rise in applications for supplementary and preventive income support, Yle’s survey of 16 regions revealed. The increase follows a 24 percent jump in basic income support payments in Helsinki last year compared to 2024, with discretionary support costs rising by 7 percent over the same period.

Discretionary support, granted by welfare regions for unexpected or temporary expenses, is only available to those who have first applied for basic support from the Social Insurance Institution of Finland (Kela). Helsinki has allocated an additional €1 million to this support in 2025, bringing the total budget to €13 million—significantly higher than the €8 million spent in 2024.

Leena Luhtasela, director of youth services and adult social work in Helsinki, described the outlook as alarming. “The situation heading into 2026 is frightening,” she said. “We’re doing everything we can to help people cope and to push for changes at Kela and the ministry.” The city has hired seven additional caseworkers to handle the growing demand.

Multiple welfare cuts deepen financial distress

Recent reductions in social benefits, combined with stricter Kela eligibility rules, have compounded financial hardship, particularly for low-income groups. “When last-resort support is cut while other benefits are also reduced, the cumulative effect is severe,” Luhtasela noted.

Paula Saikkonen, research director at the Finnish Institute for Health and Welfare (THL), warned that the rising demand reflects worsening deprivation. “The problem is that these cuts all target the same vulnerable groups,” she said.

In Pirkanmaa, one of Finland’s largest welfare regions, authorities have budgeted for a 10 percent increase in discretionary support costs compared to 2024 and hired two new benefits processors to manage the workload.

Support increasingly needed for food and housing

Applicants are increasingly seeking assistance for basic necessities like food, Luhtasela said. Housing-related struggles have also surged, particularly in high-cost urban areas. In Helsinki, support for moving and eviction cleanups rose by 34 percent last year.

While the city provides additional aid for housing and food security, Luhtasela emphasized that municipal support does not automatically cover expenses rejected by Kela. “We follow specific guidelines—Kela remains primarily responsible for costs like medications,” she clarified.

With savings depleted and welfare reductions ongoing, Saikkonen stressed that those reliant on income support face mounting difficulties in improving their situation.