Blocks of flats in Martti, Turku, on 4 July 2024. The Social Insurance Institution of Finland (Kela) has urged tens of thousands of households that receive basic social assistance for housing costs to look for more affordable housing due to a legislative change that prevents it from exceeding the municipality-specific limits for the assistance. (Laura Ukkonen – Lehtikuva)
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THE SOCIAL INSURANCE INSTITUTION of Finland (Kela) has encouraged 25,000 households to look for more affordable housing options since April, reports YLE.
Kela has issued the recommendations due to a legislative change that prevents it from exceeding the maximum limits for housing costs when granting basic social assistance for housing costs – except for special grounds such as old age, poor health and the interests of children.
The limits can no longer be exceeded on grounds of a poor local housing situation, however.
The limits are adjusted annually basis for each municipality based on the average housing costs of benefit recipients in the municipality. Currently, the limit stands at 540 euros in Turku, 589 euros in Tampere and 715 euros in Helsinki.
Previously, Kela has been able to exceed the limit by around five per cent.
Since February, the share of households that receive basic income assistance also for housing costs exceeding the municipality-specific limits has decreased by 14 percentage points, according to YLE. Underlying the stricter approach are the cost saving targets the government has imposed on the social security system. Kela has estimated that the approach will generate cost savings of roughly 70 million euros by 2027.
YLE on Tuesday reported that experts have voiced their concern that the change could reverse downward trend in homelessness among young people. Under 30-year-olds have accounted for roughly a third of the 129,000 adult recipients of basic income assistance.
Hilma Sormunen, the head of advocacy at the Finnish Youth Housing Association, stated to the public broadcasting company that young people are clearly under growing pressure to find more affordable housing. The problem, she added, is that the availability of reasonably priced rental housing is limited particularly in the capital region and other population centres.
“It’s the first sign of the effects of social security cuts. People can’t afford their own house the same way as they used to,” she said.
Also Kela has estimated that one-person households and unemployed young people will bear the brunt of the spending cuts on social security benefits.
Aleksi Teivainen – HT
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Source: www.helsinkitimes.fi
