The feet of a newborn in Helsinki in September 2019. Many Finnish municipalities offer financial incentives for having children. Even the largest incentives have not produced a sustained spike in births, but they have had other positive effects for localities, according to a report by YLE. (Irene Stachon – Lehtikuva)
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SEVERAL MUNICIPALITIES in Finland have offered couples financial incentives for having children.
YLE reported last week that the incentives can be thousands of euros in some municipalities, with the highest presently available in Luhanka a roughly 700-resident locality in Central Finland, and Miehikkälä, a 1,700-resident locality in Southern Finland.
Both localities are offering local families 1,000 euros a year per child for up to 10 years. A similar incentive scheme was also available in Lestijärvi, a roughly 700-resident locality in Central Ostrobothnia, in 2021–2022.
Although statistics suggest that the incentives have not had a substantial impact on the number of births in any of the municipalities, the municipalities feel that the incentives have had a positive impact on livelihood, including by helping to keep hold of families and guaranteeing the future of schools.
All of the municipalities have also recorded a year with unusually many births after adopting the incentive, but such spikes have occurred also before the introduction, wrote YLE. Venla Berg, a leading researcher at the Family Federation of Finland, said to the public broadcasters that financial incentives have been shown in studies to have an impact especially on the timing of starting a family.
“The children who’d be born in any case are maybe born earlier due to incentives,” she said.
Tarja Alastalo (Centre), the chairperson of the municipal council of Miehikkälä, told YLE that she believes the incentive has encouraged local residents who are considering starting a family to do so in Miehikkälä. The municipality has also thought about carrying out a survey among the incentive recipients.
Miehikkälä introduced the incentive in 2018, with the annual cost rising roughly to the wage costs of one full-time employee, to 40,000 euros.
Esko Ahonen, an ex-municipal manager of Lestijärvi, viewed in an interview with the public broadcaster that the incentive was key for securing the future of the local school. While it did not draw new families to the locality, it did slow down emigration from the locality.
Lestijärvi discontinued the incentive scheme due to financial difficulties at the end of 2022, but the annual payments will be made for children born before 2023 until the spring of 2033. The scheme has thus far cost the municipality 42,000 euros.
Tuomo Kärnä, the municipal manager of Luhanka, stated that the incentive is a means to improve the appeal of the locality, which also supports new parents in other ways – including by offering domestic help with day-to-day tasks such as cleaning, cooking or taking the child out six hours a day, six days a week.
Providing social support for parents is highly recommended, according to Berg. “It’d be a good idea also for the state to consider offering practical help to parents,” she said to YLE.
Aleksi Teivainen – HT
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Source: www.helsinkitimes.fi
