The Finnish government is preparing to reform family benefits, Minister of Social Security Sanni Grahn-Laasonen (NCP) announced on Friday.
A working group will be formed this autumn to review family support, including child benefits, for the current and next government terms.
"One option that has been discussed is increasing the child benefit for the first child," Grahn-Laasonen said.
Social benefits agency Kela’s new director general, Lasse Lehtonen, also suggested in an interview with Yle that child benefits should be made more age-sensitive, with the highest benefit going to the first child.
According to a report published last year by the Ministry of Social Affairs and Health, efforts should be directed at lowering the age of first-time mothers to increase birth rates — one of the suggested methods was to link the amount of child benefit to the mother’s age.
Biggest expenses come with first child
Kela pays child benefit for children under 17 years of age who live in Finland. Currently, the child benefit amount is the same for all families, with the first child receiving the lowest payment of 94.88 euros per month. The benefit increases with each additional child, reaching 192.69 euros per month for the fifth and subsequent children.
"Often, the costs and need for purchases are greatest in families when they have their first child. They buy the first stroller, possibly move to a bigger home, and other child-related needs typically arise with the first child," Grahn-Laasonen said.
The Kela director general, in his interview, had linked the size of the child benefit for the first child to birth rates.
However, Grahn-Laasonen emphasised that researchers generally agree that financial incentives do not necessarily have a significant impact on birth rates.
"In countries where various financial incentives have been tried, the effects on birth rates have been minimal or short-lived," she said.
Splitting child benefit between parents
The minister also stated that one important development for child benefits would be to split the payment equally between both custodial parents.
"That would make it easier to arrange child support and shared custody in cases of separation," she said.
Grahn-Laasonen believes developing family benefits is crucial for building a child-friendly society and ensuring all family types and situations are fairly considered. This includes equally splitting child benefits between both parents.
"It has also come up in various expert statements, and it was discussed in connection with a study that focused on demanding separation situations and agreements on child support. It would certainly also promote equality,” Grahn-Laasonen said.
