Finnish cuts push nearly 90 percent of social organisations towards layoffs

Nearly 90 percent of Finnish social and healthcare organisations are planning dismissals as government funding cuts take effect, according to a survey reported by Yle. Planned and decided furloughs and dismissals currently affect 1,399 people.

The survey by the Wellbeing Industry Association Hali and the Finnish Federation for Social Affairs and Health SOSTE found that almost 30 percent of organisations had already decided on furloughs or dismissals, while 57 percent were planning such measures.

The organisations said the cuts to government grants were the reason for the planned measures.

The government of Prime Minister Petteri Orpo is reducing grants to social and healthcare organisations to less than half their previous level between 2024 and 2027. The cuts will amount to 84 million euros next year.

Dismissal announcements increasing

Information about dismissals and change negotiations at social and healthcare organisations has emerged almost daily in recent weeks. Decisions on the grants are expected in January.

On Thursday, the Finnish Association for Substance Abuse Prevention EHYT announced change negotiations covering its entire staff. The organisation said its face-to-face work could end completely.

Other organisations that have previously announced dismissals or change negotiations include the Finnish Association of People with Intellectual Disabilities, SOSTE and Mieli Mental Health Finland.

Dispute over grant criteria continues

The government changed the grant criteria in mid-August after a lengthy dispute. The main change was to place greater emphasis on concrete, face-to-face client work.

An estimated 70 percent of activities currently funded by the grants already involves face-to-face client work.

The government agreed during its spring budget framework negotiations that the minister must have the grant criteria approved by the government because of the sensitivity of the issue. However, Social Affairs and Health Minister Wille Rydman published his own criteria without consulting the other governing parties.

The dispute has not been resolved. Rydman and the other government parties continue to disagree over who should have the final say on the criteria to be adopted in the autumn: the minister or the government.

The survey was sent to all 686 organisations that received the grants in 2026. A total of 461 organisations responded, producing a response rate of 61 percent.