Kela’s Kamppi service point in Helsinki. LEHTIKUVA
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The Finnish government has unveiled a package of new spending cuts totalling €170 million, targeting a range of social and healthcare services. The announcement follows Prime Minister Petteri Orpo’s pledge to present additional savings ahead of the April local elections.
The savings package includes a €50 million reduction in funding for the Social Insurance Institution Kela, drawn from previously unused funds.
The government said the money, carried over from previous years, will be removed as a one-off budget correction for 2026.
Kela’s Chief Financial Officer Kai Ollikainen said the institution had not been consulted.
“This was a complete surprise,” Ollikainen said in an email statement. “Kela must now assess how this cut will impact operations in the coming years and what might be left undone as a result.”
He noted that the organisation had already been assigned a €45 million savings target for 2025–2027. Kela’s unused reserves stem in part from the pandemic and delays in development projects. These reserves have served as contingency funding for sudden changes in workload and legal deadlines for processing benefits.
The government also confirmed cuts of €12.6 million to child protection and social work services beginning in 2026, €20 million from disability services, and €16.2 million from home care services, which are expected to become increasingly digitised.
A separate €5 million cut will apply to regional councillor expenses.
The government had previously proposed larger cuts through expanded hospital cooperation and reductions in specialist healthcare, but that plan met political resistance when details emerged. The new package shifts focus to basic services and administration.
The Ministry of Finance described the €50 million Kela cut as a way to balance the 2026 budget deficit without committing to permanent reductions. The funds had been earmarked for operations but were not spent due to postponed initiatives and lower-than-expected expenditure during the COVID-19 crisis.
The broader savings programme is expected to yield around €100 million annually from 2028 onward, mostly from reduced social care costs.
The announcement follows an interpellation debate initiated by opposition parties in response to the government’s handling of social and healthcare cuts.
The revised savings list was agreed at a cabinet meeting on Thursday and includes measures across basic healthcare, social services, and administrative costs. Further details on the implementation timeline and service-specific breakdowns are expected in the coming months.
HT
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Source: www.helsinkitimes.fi
