Young people with payment defaults may lose housing, mental health clients left without support

Government funding cuts to social and welfare organisations could force many small non-profits to shut down entirely, leaving vulnerable groups without critical services, Yle reports.

The Finnish government’s decision to reduce STEA grants—state subsidies for social and welfare NGOs—by €50 million next year threatens housing support for young people with credit issues, mental health rehabilitation, and domestic violence prevention services nationwide.

In Tampere, the non-profit Tampere Region Youth Housing Association, which provides rental housing to under-30s regardless of credit history, risks closure if its sole employee, executive director Mikko Malkamäki, loses funding. The association currently houses 10–20 homeless young people annually, with 80% of applicants having credit defaults.

“We’re one of the few landlords who don’t reject tenants based on credit marks,” Malkamäki told Yle. Without STEA funding, the association may shift focus to financially stable tenants, reducing support for those in crisis.

The cuts—part of a broader €190 million reduction (nearly 50%) in STEA grants over the electoral term—also endanger mental health services, addiction support, and peer groups. In 2024, STEA funding employed 8,792 workers across Finland’s 9,000 social and health NGOs.

Domestic violence shelters face similar risks. Tampere Crisis and Shelter Association may have to scale back services if STEA funds disappear, warned service manager Milka Suuniittu-Sakari. “There’s nothing left to cut—services will simply end” without replacement funding, she said, calling the cuts short-sighted given the higher long-term costs of reactive care.

The government has pledged €25 million to welfare regions to offset next year’s cuts, but allocation details remain unclear.