Social and health NGO umbrella group faces layoffs amid funding uncertainty

Finland’s social and health NGO umbrella organisation Soste will proceed with layoffs this summer despite a government decision to revisit funding criteria, as next year’s budget remains unresolved and cuts are still expected, Yle reports.

Prime Minister Petteri Orpo announced on Tuesday that preparations for allocating state subsidies to social and health NGOs would restart after the Finns Party lost a cabinet vote on proposed criteria. Under the earlier proposal by Social Affairs Minister Wille Rydman, Soste would have lost all its STEA funding.

Soste, which represents around 250 social and health NGOs, currently employs 31 people. Its secretary general, Vertti Kiukas, said layoffs are now inevitable because subsidies are set to be cut by nearly a third. He called it “highly unlikely” that Soste would be spared, though final decisions on redundancies or furloughs will not be made before mid-August.

With personnel costs making up most of its expenses and long notice periods, Kiukas said decisions must be taken now, even though the exact funding levels for 2027 will only be confirmed later. Soste currently receives about 80% of its budget from STEA subsidies, which totalled €2.8 million this year. Since the current government term began, its funding has already been cut by €800,000.

Kiukas warned that smaller member organisations, many run by volunteers, would suffer most if Soste’s operations shrink. The umbrella group provides legal expertise, training, and administrative support that many small NGOs cannot afford on their own.