Subsidy changes add to rising prices at recycling centres

Changes to employment subsidies are increasing costs for some second-hand retailers, and may contribute to higher prices, Yle reports. The average price at the Helsinki Metropolitan Area Reuse Centre has risen by about 10 per cent this year, while several charity shops have kept prices steady or reduced them.

Employment subsidy legislation changed in 2023, and responsibility for employment services moved from the state to employment regions in 2025. Subsidies have since run out in many regions, while local employment efforts are still taking shape.

Aatos Weckman, finance and production director at the Helsinki Metropolitan Area Reuse Centre, said employment subsidies accounted for about 29 per cent of the organisation’s total funding in 2023. This year, the share is forecast to fall to about 15 per cent. The centre employs nearly 100 fewer people than it did three years ago.

The average price of items at the centre has climbed from about four euros to 4.40 euros. Weckman said subsidy changes were one factor, but inflation was also having a significant effect. Higher wages, rents and fuel costs have also contributed.

Miia Podworsky, the centre’s head of product management, said strong demand for winter sports equipment had also pushed up the average. Stocks of the gear, which tends to cost more than other items, sold out after an unusually good winter in the capital region.

The centre says it has worked to improve efficiency so it does not have to pass all its costs on to customers. It gives away nearly four million items a year and says it intends to keep prices affordable.

Several charities say they have avoided raising prices because of the difficult economic situation. The Salvation Army’s Icare second-hand shops have lowered prices, with the organisation covering the difference. Helsinki Emmaus says it cannot raise prices on ordinary goods when many people are struggling financially.

Prices at the Finnish Red Cross’s Kontti chain have also fallen slightly. More than 70 per cent of its items sell for under five euros, while one per cent cost more than 30 euros. The average sale price has dropped by 30 cents since last year, but a rise in customer numbers has increased sales.

Fida secondhand has also seen a slight fall in the average price of items sold this year. Retailers say unusual items, including sports equipment and designer goods, are priced according to their value.