Benefit cuts hit men in small towns hardest, data show

More than 16,000 people had their basic social assistance reduced after failing to meet new requirements, with repeated cuts most common among men in smaller municipalities, Yle reports. The changes took effect in February.

The rules allow the basic amount of last-resort social assistance to be cut by as much as half if a recipient does not follow Kela’s instruction to apply for a primary benefit, such as student aid or sickness allowance, or register as an unemployed jobseeker.

Between February and August, Kela directed more than 50,000 recipients to take one of those steps. About one in five basic social assistance applicants received a notification. Around one-third of those notified complied, while others faced a reduction in their benefit.

Among people told to seek full-time work, younger adults were prominent. Nearly 40 per cent of those who received that instruction had their basic amount halved for failing to register as a jobseeker. Cuts were particularly common among people aged 25 to 44, men, Finnish citizens, people who speak a national language as their first language, and those living in rural areas.

Recipients instructed to apply for a primary benefit were more likely to comply. Only one in five in that group had their support reduced for failing to act. Cuts in this group were somewhat more common among younger recipients and more clearly so among people living with their parents, men and people whose first language is not a national language.

Kela researcher Tuija Korpela said the findings point to two groups: one that responds to the instructions and another that does not. She said people with a foreign-language background may not previously have known what steps to take, and that the warning of a possible penalty may have made the requirements clearer.

In total, more than 16,000 people had their benefit reduced at least once during the period. Nearly 3,000 had reductions in at least five of the seven months. Repeated cuts were most common among men in smaller municipalities, Finnish citizens, people whose first language is a national language, and those living alone or with their parents. Many had received social assistance for a long time, Korpela said.

Korpela said further investigation is needed into why cuts continue for some recipients. Kela staff can and must refrain from reducing a benefit if doing so would be unreasonable given the applicant’s overall circumstances. When halved, the basic amount is about 289 euros a month, intended to cover essential expenses including food, phone bills, hygiene products and clothing.