Finland reduced basic social assistance payments for more than 5,700 people in April after stricter welfare rules introduced earlier this year tightened conditions for receiving benefits.<\/p>\n
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New figures published by Kela on Thursday show that the changes, which came into force in February, increased pressure on recipients to register as full-time jobseekers and apply for primary benefits such as unemployment support or housing assistance.<\/p>\n
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At the same time, nearly 12,000 people who had received warnings avoided cuts after taking action before deadlines expired.<\/p>\n
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The reform expanded Kela\u2019s authority to reduce the basic component of social assistance if recipients failed to meet employment or benefit obligations.<\/p>\n
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Under the new rules, payments can now be cut by 50 percent if a person does not register as a full-time jobseeker or apply for benefits they are entitled to receive despite being instructed to do so.<\/p>\n
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Earlier legislation only allowed reductions of 20 or 40 percent.<\/p>\n
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Kela said around 5,500 recipients faced the maximum 50 percent cut in April. Only about 180 people received reductions of 20 or 40 percent.<\/p>\n
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The figures show that 3.5 percent of all working-age recipients of basic social assistance received reduced payments in April, compared with 2.6 percent a year earlier.<\/p>\n
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Kela issued large numbers of formal warnings after the reform entered force. Preliminary data show around 9,000 people received warnings in February, 20,000 in March and another 10,000 in April.<\/p>\n
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Despite that, Kela decided not to reduce payments for around 11,500 people who had previously received warnings.<\/p>\n
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The agency said many recipients avoided cuts by registering as jobseekers, correcting missing applications or meeting other requirements before deadlines expired.<\/p>\n
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In some cases, reductions were also judged unreasonable and therefore not imposed.<\/p>\n
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\u201cThe reduction of the basic component is a very challenging situation for the customer,\u201d said Tomi St\u00e5hl, head of Kela\u2019s social assistance competence centre.<\/p>\n
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\u201cWe at Kela want to help customers comply with the obligations set by law so that reductions can be avoided as often as possible,\u201d he said.<\/p>\n
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St\u00e5hl said the agency remained particularly concerned about the impact on vulnerable people and children.<\/p>\n
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The law states that cuts cannot threaten a person\u2019s minimum means of living or otherwise be considered unreasonable. Payments for people under 18 cannot be reduced.<\/p>\n
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Most sanctions were linked to failures to register as jobseekers. Kela said 85 percent of reductions were imposed because recipients had not signed up with employment services despite having an obligation to do so.<\/p>\n
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Another 17 percent involved failures to apply for primary benefits such as unemployment support or housing benefits. Some recipients had multiple reasons recorded for reductions.<\/p>\n
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Kela researcher Tuija Korpela said the April figures reflected the broader obligations introduced by the reform.<\/p>\n
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\u201cThe law change obliges Kela to reduce the basic component or at least consider reducing it in more cases than before,\u201d Korpela said.<\/p>\n
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She added that reducing payments by half represented a harsher sanction than under previous legislation.<\/p>\n
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The basic component of Finland\u2019s social assistance system covers everyday expenses such as food, clothing, transport, phone bills and internet access.<\/p>\n
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For a person living alone, the full monthly amount currently stands at \u20ac578.43. After a 50 percent reduction, the payment falls to \u20ac289.22 a month, or around \u20ac9.64 a day.<\/p>\n
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Housing and healthcare costs reimbursed separately through social assistance are not affected by the reductions.<\/p>\n
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