Factsheet for measure
FI-2023-1/3137
–
Updated
– measures in Finland
Legislation package to strengthen purchasing power in 2023
Ostovoiman vuoden 2023 vahvistamista koskeva lainsäädäntö
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.
Updates
The following updates to this measure have been made after it came into effect.
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25 March 2026
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The temporary measures introduced under this legislative package — expired as planned in spring 2023 and were not extended.
In spring 2026, Finland was affected by the global energy price shock triggered by the closure of the Strait of Hormuz following the US-Israeli attack on Iran on 28 February 2026. Global oil and gas prices surged, raising fuel and transport costs for Finnish households and businesses. Finland's exposure was cushioned compared to most EU countries by its high share of emission-free electricity generation, meaning electricity prices were not significantly affected by the shock.
Unlike in 2022–2023, the Finnish government did not introduce a comparable support package in response to the 2026 shock. At a government meeting on 25 March 2026, Prime Minister Petteri Orpo announced that the Ministry of Finance had been tasked with examining contingency options should conditions worsen, but the government did not commit to specific measures at that stage, citing the already strained state of public finances (Helsinki Times, 25 March 2026)
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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
Actors and funding
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Actors
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Funding
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National government
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National funds
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Social partners
Social partners' role in
designing the measure
and form of involvement:
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Trade unions
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Employers' organisations
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Role
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Consulted
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Consulted
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Form
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Direct consultation outside a formal body
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Direct consultation outside a formal body
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Social partners' role in the
implementation, monitoring and assessment phase:
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No involvement
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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
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21 October 2022: Government proposal [HE 236/2022 vp] (Hallituksen esitys HE263/2022)
(www.eduskunta.fi)
