Background information

The Finnish government has implemented a package of measures to increase purchasing power in the face of rising prices of consumer goods. The parliament has passed temporary amendments to the Child Support Act [796/1992] (Lapsilisälaki), the Unemployment Insurance Act [1290/2002], the Income Support Act [1412/1997] (Työttömyysturvalaki), the Student Allowance Act [65/1994] (Opintotukilaki) and the Health Insurance Act [1224/2004] (Sairasvakuutuslaki). All temporary changes to the acts will enter into force on 1 January 2023 and will remain in force until the end of 2023.

Content of measure

To support families with children who are in particular negatively affected by rising prices, the amendments to the laws include a temporary increase in the child supplement to unemployment, increase in child benefit for single parents, an increase in custodial education allowance and a supplement to income support for children under 18. The level of co-payment level for medicines, which is tied to the cost-of-living index, is frozen through an amendment to the Health Insurance Act [1230/2022] in 2023 at the 2022 level.

The government estimates that a 20% increase in the child supplement to unemployment benefit would cost the Finnish Social Insurance Institution (Kela) around €26 million in unemployment benefits. An increase in the childcare allowance for students would increase government expenditure by €1.7 million, and an increase in the single-parent child allowance by €9 million in 2023. An increase in the basic rate of income support for children under 18 would increase expenditure on basic income support by €18.5 million. However, increases to other benefits are excepted to reduce the expenditure on basic income support by €11.5 million. In addition, the increase in the child increases in unemployment insurance is estimated to reduce expenditure on housing support by around €2 million.

Use of measure

In December 2021, there were 535,576 families that received child benefits, out of which 107,228 received the supplement for single parents. In 2020, 35.9% of earnings-related daily allowance recipients, 30.1% of basic daily allowance recipients and 28.3% of labour market support recipients received a child supplement. During the education year of 2021-2022, child supplement to study allowance was received by 26,800 students.

Target groups

Workers	Businesses	Citizens
Does not apply to workers	Does not apply to businesses	Parents Single parents Students People on social benefits People on low incomes

Actors and funding

Actors	Funding
National government	National funds

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	Consulted	Consulted
Form	Direct consultation outside a formal body	Direct consultation outside a formal body

Social partners' role in the implementation, monitoring and assessment phase:

• No involvement
• Main level of involvement: Peak or cross-sectoral level

Involvement

Social partners were invited to leave a statement on the government proposal.

Views and reactions

The Confederation of Finnish Industries EK [Elinkeinoelämän keskusliitto] considered the amendments to be understandable. The peak-level trade union The Finnish Confederation of Professionals STTK voiced support for the amendments.

Sources

• 21 October 2022: Government proposal [HE 236/2022 vp] (Hallituksen esitys HE263/2022) (www.eduskunta.fi)