Finland proposes baby bonus to encourage young adults to have children

In Finland, discussions are underway about the potential introduction of a financial incentive aimed at encouraging young adults under 30 to have their first child, according to Anna Rotkirch, head of research at the Population Research Institute. The proposed “baby bonus” could take the form of a housing loan or student loan rebate, tax relief, a reduction in pension payments, or a combination of these, amounting to between €10,000 and €30,000.

This suggestion, along with 20 other measures, was put forward in a report commissioned by the Ministry of Social Affairs and Health, released recently. While Finns typically express a desire to have two to three children, many have their first child after turning 30, when female fertility is already declining. The aim of the proposal is to encourage earlier childbearing among young adults.

However, young parliamentarians have rejected the idea in interviews with Helsingin Sanomat, characterizing it as unfair and financially unrealistic. Experts have weighed in on the proposal, indicating that it may disproportionately benefit middle-class families who are already in stable circumstances and have plans to have children. Professor Marika Jalovaara from the University of Turku expressed concern that such support tends to favor those who are already doing well, while Anna Rönkä, an education professor, pointed out the potential stress this could place on young couples who may not yet be in a stable relationship.

Both Jalovaara and Rönkä suggested that alternative measures, such as improving access to healthcare services for new parents, would be a more effective way to support family growth without inadvertently exerting pressure on individuals. The proposal is still in preliminary stages, with potential considerations of equity and inclusivity for various family structures ongoing.