The Finnish government's cuts to social security benefits will push even more people into poverty and widen the gap between rich and poor in society, according to an assessment by the Ministry of Social Affairs and Health.
When the current government came into office in the summer of 2023, the percentage of people in Finland considered to be in the low-income category was 13.4 percent, or some 737,000 people.
In Finland, someone is officially defined as poor or low-income if their income falls below 60 percent of the median monthly income. In 2023, this "poverty line" was about 1,470 euros per month for a single person.
According to the ministry's assessment, the government's social security cuts and austerity measures have increased this proportion to about 15.6 percent of the population — with families with children and unemployed people hit especially hard.
In addition, people already below the line have fallen or will fall even deeper into poverty, the assessment added.
Yle News compiled a list of the government's cuts, and their effects, in this article.
Public health authority THL estimated in August that the government's measures would push about 27,000 children in Finland below the poverty line, but the ministry now says that this figure is more likely to be over 30,000.
Cuts hurt those most in need
The ministry's assessment also revealed that recipients of social assistance — Finland's last-resort form of financial aid — have been hit even harder than expected by the government's measures.
The ministry found that more than four out of five recipients of the benefit have seen their disposable income decrease over the past two years.
The government plans to push social assistance applicants to instead apply for primary benefits such as unemployment or student financial aid, in a proposal that was submitted to parliament earlier this week.
If the bill is passed, Kela must in future check each social assistance applicant to see whether they have applied for any other form of benefit. If they have not done so, and fail to do so despite Kela's request, their social assistance benefit could be slashed by up to 50 percent.
According to the ministry, this strategy will likely further widen wealth inequalities in Finland and deepen the poverty of those already struggling to make ends meet.
When the effects of the cuts already made are taken into account, the ministry calculates that almost one in five recipients of basic social assistance will see their income drop by about 15 percent.
Last year, the average amount of basic social assistance paid was 528 euros per month, meaning an average loss of about 90 euros. The ministry also noted that nearly one third of recipients last year had no other form of income.
Government policies "not unproblematic" from human rights perspective
In its report, the Ministry of Social Affairs and Health noted that "the main areas of focus in the assessment are the effects on income distribution and the impacts on fundamental and human rights".
The study focused in particular on people outside the workforce, such as children, people with disabilities and the elderly. According to the Finnish Constitution, everyone has the right to necessary subsistence and care, if they cannot guarantee it themselves.
In its assessment, the ministry states that while a weak economic situation is generally considered an acceptable reason for lowering social security benefits, such cuts are "not unproblematic" from the perspective of fundamental and human rights.
Human rights conventions, of which Finland is a signatory, decree that cuts should not target the most vulnerable groups, and measures that increase child poverty, for example, should be avoided.
The Finnish government has not achieved this objective, the ministry said.
In addition, the government wants to introduce a provision that only necessary medical expenses can be considered when calculating the amount of basic social assistance an applicant can receive.
"Tightening the criteria for health care costs as part of the calculations for basic social assistance will weaken recipients' fundamental rights," the ministry's assessment stated.
