Finland child benefit reform is set to take a new direction as the government prepares to rework how support is allocated to families. A working group will be appointed this autumn to review the current system, and the biggest proposed change would give the most support to the first child instead of offering more for each additional child.
This would be a reversal of the model Finland has used for years. At present, families receive larger benefits as more children are added. The new model would frontload support at the beginning, offering the highest payments when families have their first child.
Social Security Minister Sanni Grahn-Laasonen told Helsingin Sanomat that shifting focus to the first child is already being discussed. One reason is the financial burden that comes with becoming a parent for the first time. She noted that while the system needs changes, there will be no promise of extra funding.
She made it clear that reforms must happen within the current budget. Promising more money, she said, would not be possible or responsible under the current financial situation.
Lasse Lehtonen, Kela’s new Director General, has also voiced support for changing the way child benefits are distributed. He believes families often face the greatest financial stress when welcoming their first child, and the current benefit structure does not reflect that reality.
He added that paying more for the first child could encourage people to start families earlier, which would help raise Finland’s declining birth rate.
Another idea from Lehtonen is to tie benefits to the age of the parents. Younger parents would receive higher payments than older ones. The goal is to lower the average age at which people have children, which has steadily increased in recent years.
This idea lines up with a report from the Ministry of Social Affairs and Health, which found that encouraging younger parenthood could help raise the national birth rate. Statistics Finland reported that the country’s total fertility rate in 2024 was 1.26, far below the replacement level of 2.1 and also below the EU average.
Grahn-Laasonen also confirmed that the government is reviewing whether benefits should be split between parents in cases of separation. This would help with shared custody and simplify child support arrangements. Instead of one parent receiving the full benefit, payments could be divided between both guardians.
This move could improve fairness and reduce financial disputes in shared parenting situations.
The maternity box, or äitiyspakkaus, has also been flagged for possible updates. Grahn-Laasonen said its value should increase once the public budget allows. The box, which contains baby clothes and essentials, has not been adjusted for inflation in recent years. As a result, the number and quality of items included have declined.
Not all updates are still under discussion. In January 2024, the government raised the child benefit for children under the age of three. In April, the child supplement tied to unemployment was removed. This benefit had mainly supported lower-income families, and its removal marked a shift in the government’s approach to targeted support.
Lehtonen is also calling for a wider conversation about how Kela is financed. Right now, 70 percent of its funding comes from the state. The rest is made up of employer and employee insurance contributions, municipal funding, and Kela’s own investment returns.
He believes more of the funding burden should shift toward insurance-based contributions, which could ease pressure on the state budget. He also said the public should not only look at how Kela spends money but also where that money comes from.
Lehtonen warned that Finland’s welfare system has become too complex. People applying for basic support often have to deal with multiple agencies. In some cases, a single applicant may have to go through four different institutions to access benefits.
He called the process a bureaucratic maze and said Kela needs to move toward a more unified model. A general support system could replace overlapping programs, making the process simpler and faster for those in need.
While Finland’s social safety net is still strong compared to other Nordic countries, Lehtonen stressed the need for efficiency and transparency. He plans to continue engaging in public debate and said his leadership at Kela will focus on clear data and long-term solutions.
Some reforms may be included in the 2025 spring budget framework. Others could take longer or be passed on to the next government for decision.
