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asJKO yle__article__heading yle__article__heading--1">THL: Government cuts shrink unemployed households' income by 20%</h1><p class="sc-ktvNQe sc-dslWvo hUYdmX cpEiOg yle__article__paragraph">The spending power of many low-income benefit recipients has slumped, according to the Institute for Health and Welfare.</p><figure class="sc-jcvEFQ gaAVHD yle__article__figure"><script type="application/ld+json">{"@id":"74-20153657","@context":"https://schema.org","image":{"@type":"ImageObject","description":"A total of 230,000 people were dependent on basic social assistance in 2023.","copyrightHolder":"Jari Kovalainen / Yle","url":"https://images.cdn.yle.fi/image/upload/ar_1.0,c_fill,g_faces,h_767,w_767/dpr_2.0/q_auto:eco/f_auto/fl_lossy/39-144303967e690e954523","keywords":"Kela,Vocational Rehabilitation by Kela,subsistence,income security,social assistance,Scanty Living,basic unemployment allowance,Poverty and Social Security,Welfare Fraud,Administration of Activities Of Providing Health Care and Other Social Services, Excluding Social Se,Communal Social Welfare and Health Care Services,social services,Social Issues"}}</script><div class="sc-jIiDBi sc-lncAYT krYthw cMcBgz"><div class="sc-gtlvkJ ddgSYf"><div class="sc-jHswkR cEPfYZ"><picture><source data-testid="source-for-S" media="(max-width: 767px)" srcSet="https://images.cdn.yle.fi/image/upload/c_crop,h_4000,w_4000,x_0,y_0/ar_1.0,c_fill,g_faces,h_767,w_767/dpr_2.0/q_auto:eco/f_auto/fl_lossy/v1743165294/39-144303967e690e954523 2x,https://images.cdn.yle.fi/image/upload/c_crop,h_4000,w_4000,x_0,y_0/ar_1.0,c_fill,g_faces,h_767,w_767/dpr_1.0/q_auto:eco/f_auto/fl_lossy/v1743165294/39-144303967e690e954523 1x"/><source data-testid="source-for-M" media="(min-width: 768px)" srcSet="https://images.cdn.yle.fi/image/upload/c_crop,h_4000,w_4000,x_0,y_0/ar_1.0,c_fill,g_faces,h_636,w_636/dpr_2.0/q_auto:eco/f_auto/fl_lossy/v1743165294/39-144303967e690e954523 2x,https://images.cdn.yle.fi/image/upload/c_crop,h_4000,w_4000,x_0,y_0/ar_1.0,c_fill,g_faces,h_636,w_636/dpr_1.0/q_auto:eco/f_auto/fl_lossy/v1743165294/39-144303967e690e954523 1x"/><img alt="Blank Kela forms in a rack with a label reading "perustoimeentulotuki" (basic social assistance)." src="https://images.cdn.yle.fi/image/upload/c_crop,h_2250,w_4000,x_0,y_721/ar_1.7777777777777777,c_fill,g_faces,h_431,w_767/dpr_1.0/q_auto:eco/f_auto/fl_lossy/v1743165294/39-144303967e690e954523" class="sc-cSaEAk cdhOGu"/></picture></div><div class="sc-beKSRx hHCGQd"><button aria-disabled="false" class="ydscr__sc-17sr1bx-0 ydscr__sc-17sr1bx-2 hkXxLi eEigQy"><span class="ydscr__sc-17sr1bx-7 evfPYu yds-button__content">Open image viewer</span></button></div></div></div><figcaption class="sc-fCSSOr kGprtX"><span>A total of 230,000 people were dependent on basic social assistance in 2023.</span><span> Image: Jari Kovalainen / Yle</span></figcaption></figure><div class="sc-lertIE kTspkI"><ul aria-label="Author" class="sc-cYoYeT kAbMlH"><li class="sc-lkbiLU fbQXTy"><span class="sc-dOUtaJ fLwwxC">Yle News</span></li></ul></div><div class="sc-bCCZMN ijFeZj"><div class="sc-ggPeai lantjH yle__article__date"><time class="sc-dmFEqP eNQWpc yle__article__date--published" dateTime="2025-04-03T12:16:58+03:00">3.4. 12:16</time></div></div></header><section class="yle__article__content"><p class="sc-ktvNQe sc-WwxRR hUYdmX eUVjgm yle__article__paragraph">The financial straits of people with the lowest incomes have become even more dire in recent years, according to a report published by the Finnish Institute for Health and Welfare (THL) on Thursday.</p><p class="sc-ktvNQe sc-WwxRR hUYdmX eUVjgm yle__article__paragraph">Besides social assistance, the disposable income of unemployed households has fallen by approximately 20 percent compared to five years ago.</p><p class="sc-ktvNQe sc-WwxRR hUYdmX eUVjgm yle__article__paragraph">According to THL, this is due to the social security cuts implemented by the government of PM <strong class="sc-fQMTnL jFPcdh yle__article__strong">Petteri Orpo</strong> (NCP), which are aimed at reducing state spending and encouraging people into work.</p><p class="sc-ktvNQe sc-WwxRR hUYdmX eUVjgm yle__article__paragraph">THL examined the impact of the cuts on the disposable income of recipients of basic security, i.e. recipients of minimum unemployment, sickness, family and pension benefits, in 2024-25.</p><p class="sc-ktvNQe sc-WwxRR hUYdmX eUVjgm yle__article__paragraph">"This paints a clear picture showing that in most people’s living situations, the cuts are quite visible, meaning that their income has declined," said THL research director <strong class="sc-fQMTnL jFPcdh yle__article__strong">Jussi Tervola</strong>.</p><p class="sc-ktvNQe sc-WwxRR hUYdmX eUVjgm yle__article__paragraph">Basic security benefits have decreased, especially for unemployed families with children, as a result of which family incomes are increasingly insufficient to cover essential everyday expenses.</p><p class="sc-ktvNQe sc-WwxRR hUYdmX eUVjgm yle__article__paragraph">The main culprits are cuts in housing allowances and the elimination of child allowances for unemployment benefits as well as index freezes – meaning that benefits do not increase even if prices rise.</p><p class="sc-ktvNQe sc-WwxRR hUYdmX eUVjgm yle__article__paragraph">The exception is pension recipients, whose income has not changed much.</p><h2 class="sc-flQbIK iMPmBE yle__article__heading yle__article__heading--2">Social assistance replaces lost income</h2><p class="sc-ktvNQe sc-WwxRR hUYdmX eUVjgm yle__article__paragraph">The overall cuts in social security have made basic social assistance more important than ever. The total income of households relying on basic security benefits depends largely on whether or not they receive social assistance, Finland's social benefit of last resort for those on very low incomes.</p><p class="sc-ktvNQe sc-WwxRR hUYdmX eUVjgm yle__article__paragraph">"If you don’t receive social assistance for one reason or another, social security cuts will significantly reduce your income. If you receive social assistance, it may even compensate for the losses in full," THL researcher <strong class="sc-fQMTnL jFPcdh yle__article__strong">Joonas Ollonqvist</strong> explained in a press release.</p><p class="sc-ktvNQe sc-WwxRR hUYdmX eUVjgm yle__article__paragraph">Social assistance often supplements other benefits. According to Tervola, many people receive three types of benefits: unemployment benefit, housing benefit and social assistance.</p><p class="sc-ktvNQe sc-WwxRR hUYdmX eUVjgm yle__article__paragraph">Social security cuts have led to some recipients of benefits receiving social assistance to replace lost income.</p><p class="sc-ktvNQe sc-WwxRR hUYdmX eUVjgm yle__article__paragraph">At the beginning of the year, it was reported that the costs of basic social assistance increased by almost 100 million euros last year. In practice, the number of social assistance recipients did not increase, but the same people receive more support than before.</p><p class="sc-ktvNQe sc-WwxRR hUYdmX eUVjgm yle__article__paragraph">Although the costs of social assistance increased, according to Tervola, the government's social security cuts have brought net savings to state finances.</p><p class="sc-ktvNQe sc-WwxRR hUYdmX eUVjgm yle__article__paragraph">According to Statistics Finland, 230,000 people were completely dependent on basic security in 2023.</p><p class="sc-ktvNQe sc-WwxRR hUYdmX eUVjgm yle__article__paragraph">The THL report examines the development of income in relation to the general price level, average wages and the amount of money considered necessary for participation in society.</p><p class="sc-ktvNQe sc-WwxRR hUYdmX eUVjgm yle__article__paragraph"><em class="sc-bWxZAa fQuqXk yle__article__emphasis"><strong class="sc-fQMTnL jFPcdh yle__article__strong">Users with an Yle ID can leave comments on our news stories. 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" src="https://images.cdn.yle.fi/image/upload/c_crop,h_2251,w_4002,x_0,y_1593/ar_1.7777777777777777,c_fill,g_faces,h_110,w_196/dpr_1.0/q_auto:eco/f_auto/fl_lossy/v1708939687/39-124931965dc57a99354d" class="sc-cSaEAk cdhOGu"/></picture></div></div></div></div></div><div aria-hidden="true" class="sc-keRagD gSHcNq"><hr class="sc-gkCgsS hxgUHg"/></div><div role="listitem" class="sc-cUkrys cUaBKR"><div class="sc-ROZ gtDjCK"><div class="sc-gLyBZa zYYNc"><div class="sc-eFAVCh ldGXag"><div class="sc-dtiPAi ifUdfR"><a href="https://yle.fi/t/18-204933/en" aria-label="More articles on the topic Economy" class="ydscr__sc-w5hh4y-0 ftZGBr sc-gjXmFk eZuwUz">Economy</a></div><h3 class="sc-bJgkWg fUXAcZ"><a href="https://yle.fi/a/74-20149166" class="sc-gpDAgj bqJzjZ">Kela receives 1.5m applications for last-resort benefits after cuts to other support</a></h3><time class="sc-ezeoWd cuJOAJ">12.3.</time></div></div><div class="sc-dRpcpH cLenyZ"><div class="sc-gwagMn hzSqmX"><div class="sc-jHswkR 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kChaIM"><div class="MinimalHeadlines__BulletContainer-sc-76e54aa6-7 dbmSw"><div class="MinimalHeadlines__BulletCell-sc-76e54aa6-8 hKpWrQ"><time class="DateTime__StyledTime-sc-c1e3697-0 byWDPX MinimalHeadlines__Date-sc-76e54aa6-4 cfzqkD" dateTime="2025-04-04T18:03:42+0300">4.4.</time><div class="MinimalHeadlines__ListLine-sc-76e54aa6-2 dEChNt"></div></div></div><div class="MinimalHeadlines__Texts-sc-76e54aa6-1 beiysB"><a href="https://yle.fi/t/18-215452/en" data-testid="minimal-headline-tag" aria-label="Nature – More on subject" class="ydscr__sc-w5hh4y-0 ftZGBr">Nature</a><h3 class="Typography-sc-32e0cc0f-0 bcjrlF link-accent"><a href="https://yle.fi/a/74-20153969" class="MinimalHeadlines__Title-sc-76e54aa6-6 jKBWIY visitable-link">Warm March accelerates spring blooms</a></h3></div></li><li class="MinimalHeadlines__TriggeredItem-sc-76e54aa6-0 kChaIM"><div class="MinimalHeadlines__BulletContainer-sc-76e54aa6-7 dbmSw"><div class="MinimalHeadlines__BulletCell-sc-76e54aa6-8 hKpWrQ"><time 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dEChNt"></div></div></div><div class="MinimalHeadlines__Texts-sc-76e54aa6-1 beiysB"><a href="https://yle.fi/t/18-217206/en" data-testid="minimal-headline-tag" aria-label="Crime – More on subject" class="ydscr__sc-w5hh4y-0 ftZGBr">Crime</a><h3 class="Typography-sc-32e0cc0f-0 bcjrlF link-accent"><a href="https://yle.fi/a/74-20153951" class="MinimalHeadlines__Title-sc-76e54aa6-6 jKBWIY visitable-link">Tougher measures against foreigners seen as "danger to public order and security"</a></h3></div></li><li class="MinimalHeadlines__TriggeredItem-sc-76e54aa6-0 kChaIM"><div class="MinimalHeadlines__BulletContainer-sc-76e54aa6-7 dbmSw"><div class="MinimalHeadlines__BulletCell-sc-76e54aa6-8 hKpWrQ"><time class="DateTime__StyledTime-sc-c1e3697-0 byWDPX MinimalHeadlines__Date-sc-76e54aa6-4 cfzqkD" dateTime="2025-04-04T14:45:44+0300">4.4.</time><div class="MinimalHeadlines__ListLine-sc-76e54aa6-2 dEChNt"></div></div></div><div class="MinimalHeadlines__Texts-sc-76e54aa6-1 beiysB"><a 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lynx set to become easier in Finland</a></h3></div></li><li class="MinimalHeadlines__TriggeredItem-sc-76e54aa6-0 kChaIM"><div class="MinimalHeadlines__BulletContainer-sc-76e54aa6-7 dbmSw"><div class="MinimalHeadlines__BulletCell-sc-76e54aa6-8 hKpWrQ"><time class="DateTime__StyledTime-sc-c1e3697-0 byWDPX MinimalHeadlines__Date-sc-76e54aa6-4 cfzqkD" dateTime="2025-04-03T16:13:58+0300">3.4.</time><div class="MinimalHeadlines__ListLine-sc-76e54aa6-2 dEChNt"></div></div></div><div class="MinimalHeadlines__Texts-sc-76e54aa6-1 beiysB"><a href="https://yle.fi/t/18-204933/en" data-testid="minimal-headline-tag" aria-label="Economy – More on subject" class="ydscr__sc-w5hh4y-0 ftZGBr">Economy</a><h3 class="Typography-sc-32e0cc0f-0 bcjrlF link-accent"><a href="https://yle.fi/a/74-20153743" class="MinimalHeadlines__Title-sc-76e54aa6-6 jKBWIY visitable-link">Food prices in Finland to rise moderately, forecast says</a></h3></div></li><li class="MinimalHeadlines__TriggeredItem-sc-76e54aa6-0 kChaIM"><div class="MinimalHeadlines__BulletContainer-sc-76e54aa6-7 dbmSw"><div class="MinimalHeadlines__BulletCell-sc-76e54aa6-8 hKpWrQ"><time class="DateTime__StyledTime-sc-c1e3697-0 byWDPX MinimalHeadlines__Date-sc-76e54aa6-4 cfzqkD" dateTime="2025-04-03T14:38:54+0300">3.4.</time><div class="MinimalHeadlines__ListLine-sc-76e54aa6-2 dEChNt"></div></div></div><div class="MinimalHeadlines__Texts-sc-76e54aa6-1 beiysB"><a href="https://yle.fi/t/18-174473/en" data-testid="minimal-headline-tag" aria-label="Nato – More on subject" class="ydscr__sc-w5hh4y-0 ftZGBr">Nato</a><h3 class="Typography-sc-32e0cc0f-0 bcjrlF link-accent"><a href="https://yle.fi/a/74-20153703" class="MinimalHeadlines__Title-sc-76e54aa6-6 jKBWIY visitable-link">Valtonen: Finland won't include conscription costs in Nato defence spending tally</a></h3></div></li><li class="MinimalHeadlines__TriggeredItem-sc-76e54aa6-0 kChaIM"><div class="MinimalHeadlines__BulletContainer-sc-76e54aa6-7 dbmSw"><div 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Yle"}],"crops":[{"name":"16:9","aspect":1.78,"coordinates":{"x":0,"y":721,"width":4000,"height":2250}},{"name":"2:3","aspect":0.67,"coordinates":{"x":139,"y":0,"width":2666,"height":4000}},{"name":"1:1","aspect":1,"coordinates":{"x":0,"y":0,"width":4000,"height":4000}}],"height":4000,"licence":{"id":"6","name":[{"language":"und","value":"Yle"}],"properties":[]},"created":"2025-03-28T14:07:05+02:00","modified":"2025-04-03T11:35:42+03:00","version":"1743165294","width":4000,"recommendedFormat":"jpg"},{"text":"The spending power of many low-income benefit recipients has slumped, according to the Institute for Health and Welfare.","type":"text"},{"text":"The financial straits of people with the lowest incomes have become even more dire in recent years, according to a report published by the Finnish Institute for Health and Welfare (THL) on Thursday.","type":"text"},{"text":"Besides social assistance, the disposable income of unemployed households has fallen by approximately 20 percent compared to five years ago.","type":"text"},{"text":"According to THL, this is due to the social security cuts implemented by the government of PM **Petteri Orpo** (NCP), which are aimed at reducing state spending and encouraging people into work.","type":"text"},{"text":"THL examined the impact of the cuts on the disposable income of recipients of basic security, i.e. recipients of minimum unemployment, sickness, family and pension benefits, in 2024-25.","type":"text"},{"text":"\"This paints a clear picture showing that in most people’s living situations, the cuts are quite visible, meaning that their income has declined,\" said THL research director **Jussi Tervola**.","type":"text"},{"text":"Basic security benefits have decreased, especially for unemployed families with children, as a result of which family incomes are increasingly insufficient to cover essential everyday expenses.","type":"text"},{"text":"The main culprits are cuts in housing allowances and the elimination of child allowances for unemployment benefits as well as index freezes – meaning that benefits do not increase even if prices rise.","type":"text"},{"text":"The exception is pension recipients, whose income has not changed much.","type":"text"},{"text":"Social assistance replaces lost income","level":2,"type":"heading"},{"text":"The overall cuts in social security have made basic social assistance more important than ever. The total income of households relying on basic security benefits depends largely on whether or not they receive social assistance, Finland's social benefit of last resort for those on very low incomes.","type":"text"},{"text":"\"If you don’t receive social assistance for one reason or another, social security cuts will significantly reduce your income. If you receive social assistance, it may even compensate for the losses in full,\" THL researcher **Joonas Ollonqvist** explained in a press release.","type":"text"},{"text":"Social assistance often supplements other benefits. According to Tervola, many people receive three types of benefits: unemployment benefit, housing benefit and social assistance.","type":"text"},{"text":"Social security cuts have led to some recipients of benefits receiving social assistance to replace lost income.","type":"text"},{"text":"At the beginning of the year, it was reported that the costs of basic social assistance increased by almost 100 million euros last year. In practice, the number of social assistance recipients did not increase, but the same people receive more support than before.","type":"text"},{"text":"Although the costs of social assistance increased, according to Tervola, the government's social security cuts have brought net savings to state finances.","type":"text"},{"text":"According to Statistics Finland, 230,000 people were completely dependent on basic security in 2023.","type":"text"},{"text":"The THL report examines the development of income in relation to the general price level, average wages and the amount of money considered necessary for participation in society.","type":"text"},{"text":"***Users with an Yle ID can leave comments on our news stories. You can create your Yle ID via*** [***this link***](https:\u002F\u002Fyle.fi\u002Faihe\u002Fyle-tunnus\u002Fyle-id)***. Our guidelines on commenting and moderation are explained*** [***here***](https:\u002F\u002Fyle.fi\u002Faihe\u002Fs\u002Fdiscussion-policy)***.***","type":"text"},{"type":"links","links":[{"external":{"url":"https:\u002F\u002Fyle.fi\u002Fa\u002F74-20144933"},"internal":{"id":"74-20144933"},"title":"Finland spends more on social assistance despite benefit cuts","datePublished":"2025-02-20T13:41:54+0200","subject":{"description":{"fi":"Suomea koskevat uutiset, kotimaan uutiset","sv":"Nyheter från Finland, inrikesnyheter","en":"News concerning Finland","ru":null,"se":null},"exactMatch":["freebase:\u002Fm\u002F0zphp7z","leiki:focus100k_na_520252","escenic:kotimaa","escenic:uutiset-kotimaa","escenic:mediasali-jalkapallo-kotimaa"],"updated":"2024-10-29T14:47:36+02:00","alternativeIds":["18-35593","18-80839","18-61020","18-82044"],"title":{"fi":"kotimaa","sv":"inrikes","en":"domestic news","ru":null,"se":null},"types":["Concept","YleNews","RecommendationCategory"],"id":"18-34837","contentHits":641246,"shortTitle":{"fi":"kotimaa","sv":"inrikes","en":null,"ru":null,"se":null}},"headline":{"image":{"alt":"A young man looks into a half-empty refrigerator. 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