Kela Projects Unprecedented Costs as Over 150000 Households Seek Basic Financial Help.
Finland is heading toward a record year in welfare spending as basic social assistance costs are expected to exceed one billion euros in 2025. This projection comes from the national benefits agency Kela, which monitors and manages public financial support.
Basic social assistance serves as the final safety net for people struggling to afford everyday living expenses. In 2024, the state spent 825 million euros on this program, marking a fifteen percent increase from the previous year. It was the largest annual spike across all government support schemes.
Kela reported that more than 150000 households were receiving basic aid as of April 2025. That is 17000 more than in April 2024. The agency explained that part of this rise is due to an increase in Ukrainian nationals who have obtained residency in Finland and are now eligible for the country’s social security benefits.
Another major factor is the recent cuts to other forms of support. Reductions in unemployment benefits and housing aid have left many individuals with no choice but to apply for basic assistance. These changes are part of the government’s broader plan to tighten public welfare spending and reduce budget pressure.
Kela also indicated that spending in other categories is expected to climb. Payments for student support, health insurance, and unemployment benefits are all projected to rise throughout the year.
However, not all areas are experiencing growth. The general housing allowance is forecasted to drop. Kela estimates the total cost for housing support will be around 135 billion euros in 2025, down by approximately 300 million euros compared to last year.
