Kela service point in Kamppi, Helsinki. Photo: Heikki Saukkomaa / Lehtikuva
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Finland’s spending on basic social assistance is expected to surpass one billion euros this year, according to an estimate from the national benefits agency Kela.
The benefit provides last-resort financial aid for residents unable to cover basic living costs. In 2024, total spending on the assistance reached 825 million euros, a 15 percent increase over the previous year. That rise marked the steepest annual growth among all state benefit categories.
Kela reported that in April 2025, over 150,000 households received basic social assistance, up by 17,000 compared to April 2024. The agency attributed the increase to several factors, including an influx of Ukrainians gaining residency status and becoming eligible for Finnish social security support.
In addition, reductions to other welfare programmes — notably unemployment and housing benefits — have pushed more residents to apply for basic assistance. These cuts were part of broader government efforts to tighten welfare spending.
Kela said it anticipates higher expenditure in other areas as well. Student benefits, health insurance payments, and unemployment benefits are all projected to rise in the current year.
Spending on the general housing allowance, however, is expected to decline. Kela forecasts that the state will spend around 1.35 billion euros on housing support in 2025, roughly 300 million euros less than the previous year.
HT
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Source: www.helsinkitimes.fi
