🇫🇮 Finland
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Society

Finland Rethinks 50% Welfare Cut for Youth in Care

By Aino Virtanen •

In brief

Finland's government is reviewing a tough new welfare law that cuts benefits for youth leaving state care. The Left Alliance is demanding answers from Minister Grahn-Laasonen, who insists local authorities must provide support.

  • - Location: Finland
  • - Category: Society
  • - Published: 6 hours ago
Finland Rethinks 50% Welfare Cut for Youth in Care

Illustration

Finland's social security overhaul is facing scrutiny after a recent tightening of basic income support rules threatened to slash benefits by 50% for young people transitioning out of state care. The reform, which took effect in February, has prompted the Left Alliance party to announce a formal written question to Social Security Minister Sanni Grahn-Laasonen next week, demanding clarity on its application to this vulnerable group.

Minister Grahn-Laasonen, of the center-right National Coalition Party, confirmed to reporters that her ministry is now examining the specifics of how the renewed legislation impacts these youths. The investigation, requested by the minister herself, will involve the Social Affairs and Health Ministry and the Social Insurance Institution (Kela). This review comes after reports highlighted that the change could force many care leavers to take on substantial student loans while still in secondary education, a requirement previously waived for them.

The Core of the Legislative Change

The amended Act on Income Support introduces stricter conditions for receiving basic assistance. Under the new rules, the basic component of income support can be reduced by 50% if an applicant fails to first apply for primary benefits they are eligible for. For students, these primary benefits are study grants and government-backed student loans. Young adults who have been in aftercare, a form of extended support following time in child protection services, had historically been treated as an exception. They could receive income support while studying without being forced to take a loan, recognizing their often-precarious start to independent life. That specific exception is now being phased out.

Kela has granted a temporary adjustment period until the end of the year for the system to adapt. However, without a permanent solution or clarified guidelines, negative decisions on income support could begin to affect these young people's lives and studies directly in the near future. The potential consequence is that a population with typically weaker financial safety nets and family support would be required to accumulate debt to cover their basic living costs during their education.

Political Reaction and Ministerial Assurance

The Left Alliance's decision to submit a written parliamentary question underscores the political sensitivity of applying broader austerity measures to Finland's child protection system. The party is seeking an official explanation from the minister on how the law should be interpreted and implemented for aftercare youth. This move formalizes the debate and requires a detailed response on the record, placing ministerial responsibility at the center of the issue.

In her comments, Minister Grahn-Laasonen emphasized the existing safety nets within Finland's welfare model. She pointed to the unconditional obligation of the country's wellbeing services counties to arrange sufficient financial support for the studies of young people in aftercare if needed. This support package, she noted, is broader than what is available to most young Finns, as it can also include help with securing a profession, finding housing, and maintaining close personal relationships. 'Strong humanitarian grounds exist for looking after young people in aftercare and their ability to cope. Finland takes care of this,' Grahn-Laasonen stated, seeking to reassure the public about the system's intent.

The Role of Regional Welfare Authorities

Beyond support for studies, the minister detailed further layers of protection that remain in place. The wellbeing services counties also hold the responsibility to pay preventative income support on a discretionary, individual basis. This tool can be used to prevent severe outcomes like homelessness among young adults leaving care. The minister's argument rests on the idea that the reformed national income support law exists within an ecosystem of regional social services that have a specific and mandated duty to these vulnerable youths.

This delineation between national benefit rules and local government obligations is a key feature of Finland's decentralized social and healthcare system, which was reformed into the wellbeing services counties structure. The controversy highlights the potential friction points between nationwide legislative austerity and localized social care mandates designed to address individual need. The ongoing review ordered by Minister Grahn-Laasonen will likely need to map out precisely how these two layers of support interact under the new, stricter law.

A Nationwide Debate on Responsibility

The situation prompts a broader discussion about the state's role as a guardian. Young people transitioning from child protection services often lack the family networks that provide financial security, advice, and a safety net for their peers. The previous exception in the income support law was a recognition of this structural disadvantage. Its removal aligns with a government policy aimed at encouraging self-sufficiency and fuller utilization of primary benefits like student loans, but it also risks placing a disproportionate burden on a group that the state has already deemed to need special protection.

The ministry's internal review will now have to balance these competing principles: fiscal responsibility and streamlined welfare rules versus the specific, long-standing duty of care to young adults who have grown up in the custody of the state. The outcome will set a precedent for how Finland navigates welfare reforms for its most vulnerable citizens. As the Left Alliance prepares its formal query, all eyes will be on the ministerial response and whether further legislative or interpretive clarifications will be needed to protect aftercare youth from falling through the cracks of the new system.

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Published: February 7, 2026

Tags: Finnish social security reformaftercare youth benefits Finlandincome support law change Finland

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