Finnish government faces scrutiny over benefit cuts and housing support changes

The impacts of the Finnish government’s benefit cuts are becoming apparent following changes to housing support implemented in April. Many individuals relying on social assistance have been urged by Kela, Finland’s social insurance institution, to seek accommodation that is more affordable. Students are also searching for cheaper housing options.

The new system for earnings-related unemployment benefits, which came into effect this fall, will soon be visible, especially if job creation does not accelerate. On Wednesday, the government announced changes to the reimbursement criteria for private doctor visits under Kela. The previous model did not reduce waiting times for treatment, prompting the introduction of a new approach that aims to enable private doctor visits for individuals over 65.

Thus far, Kela’s reimbursements for doctor visits have represented only a fraction of total expenses. In 2023, all reimbursements amounted to approximately €16 billion. The government is pursuing significant changes in the distribution of this funding, with the goal of implementing a comprehensive basic support system and halving the number of social assistance recipients to below 200,000.

On Saturday, the guest on the program Ykkösaamu will be Kela’s CEO Outi Antila, interviewed by Seija Vaaherkumpu. The live broadcast will air on TV1, Yle Radio 1, and Yle Areena at 10:05 AM. Viewers can send questions to Outi Antila at [email protected] or through a provided online form.