A person looks at brochures at a Kela service point in Helsinki. LEHTIKUVA
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Applications for basic social assistance in Finland increased by nearly 14% last year, reaching more than 1.5 million, according to the Social Insurance Institution (Kela). The rise follows cuts to housing and unemployment benefits introduced in 2024 and early 2025.
Despite the surge in applications, around a quarter were rejected, with first-time applicants facing a rejection rate of up to 60%.
Kela stated that the most common reason for denial was that applicants had sufficient income to disqualify them from receiving the last-resort benefit.
“We are particularly concerned about customers who may plan their lives around the belief that they can easily qualify for social assistance,” said Petri Hannula, director of Kela’s customer service unit. “Many do not understand how strict the qualifying criteria actually are. The reality may come as a big disappointment, leaving them to struggle with basics such as paying rent.”
Kela calculates social assistance by subtracting necessary expenses, such as rent and food, from an applicant’s total income and assets. If the applicant’s expenses exceed their income, the shortfall is covered by social assistance.
Hannula noted that a significant number of applications were also rejected because required documents, including bank statements, were not submitted despite repeated requests.
The rise in applications has increased Kela’s workload, leading the agency to train more staff to handle social assistance cases. However, it stated that processing times remain within the statutory limit of seven working days.
Last year, the total cost of basic social assistance rose by €95 million, despite government efforts to cut welfare spending. A working group has proposed stricter eligibility rules, including a potential 50% reduction in social assistance for recipients who fail to register as full-time jobseekers.
HT
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Source: www.helsinkitimes.fi
