A government-commissioned report in Finland has proposed a major overhaul of the country’s child benefit system, including a flat monthly payment of €100 for every child until the age of 18.
The proposal, published on Monday, was prepared for Social Security Minister Sanni Grahn-Laasonen by senior Health Ministry official Liisa Siika-aho and Kela director Kari-Pekka Mäki-Lohiluoma.
Under the plan, every child would receive the same tax-free benefit regardless of birth order.
The current system increases payments for larger families. Child benefit would also continue for an extra year, ending when a child turns 18 instead of 17.
At present, families receive €94.88 a month for a first child, €104.84 for a second child and progressively larger sums for additional children. Families with five or more children receive more than €190 per child each month. Single parents also receive an additional payment of €73.30 per child.
The proposed model would remove all supplementary increases, including higher payments for large families, single parents and children under the age of three.
According to the report, the flat-rate model would create a simpler and more equal system. It would also allow child benefits to be divided between parents living at different addresses, reflecting changes in family structures and shared parenting arrangements.
“Social security should be simple and understandable,” Siika-aho said during the presentation of the report. “Child benefit should return to its original purpose as a transfer from households without children to families with children.”
Siika-aho said the present structure places unequal value on children because payments vary depending on family size.
“Children are not equally valued from the perspective of the system at the moment,” she said.
The proposal includes compensatory measures aimed at protecting low-income households from losses. These include higher housing support for families, increases to student support supplements for parents and a rise in maintenance support payments to replace the current single-parent supplement.
According to estimates included in the report, the proposal would increase annual welfare spending by around €55m. Finland currently spends about €1.4bn each year on child benefits.
The report noted that reducing the flat-rate payment from €100 to €99 would lower costs by almost €12m annually if lawmakers wanted the reform to remain budget neutral.
Grahn-Laasonen said the proposals were intended for discussion ahead of the next parliamentary term and stressed that no changes would be introduced during the current government’s mandate.
“I hope parties examine this report carefully and form their positions over time,” she said.
The proposals are likely to face political resistance, for example, the governing Christian Democrats have repeatedly opposed cuts to benefits for large families.
HT