Who suffers from the cuts?

To unders­tand what these auste­rity measures mean, in real terms, the Union research unit calcu­lated how the cuts would affect five diffe­rent families. The fictional families are created to corres­pond to various typical real life situations.

For a majority of these families, the auste­rity measures would mean a weake­ning of their purcha­sing power, which could amount to hundreds of euros a month. Two families benefit from the tax cuts planned.

Especially hard hit are those entitled to earnings-related unemplo­y­ment benefits. Under the new legis­la­tion the benefit would begin go down after two months. Another group to suffer, in particular, are those living alone in the count­ry­side or in the small commu­ni­ties where it is difficult to find a new job within a decent distance.

The Govern­ment measures benefit most those who enjoy a stable situa­tion and moderate expenses.

– So, the most vulne­rable are the ones who are set to lose the most by the Govern­ment cuts. This means that even the smallest change in income or expenses might make the whole economy tilt, says Anu-Hanna Anttila, the chief of the Union research unit.

– In particular, families with only one breadwinner face the greatest risk and, in turn, this will affect the economy as a whole. These are single person families, single parents and families where one of the adults is unemployed or laid off temporarily.

As regards unemplo­y­ment or tempo­rary lay-offs, the cuts make a quick negative impact. People will need to seek basic social assistance.

– The Govern­ment measures benefit most those who enjoy a stable situa­tion and moderate expenses. This means families with two salary earners with enough income, grown-up children and low housing expenses, Anttila says.

Warning! Cuts ahead!

Soste, the umbrella organi­sa­tion of the Finnish social affairs and health NGO’s, calcu­lated what does it mean in practise. The number of poor people will grow 9.2 per cent and children in poverty 13.2 per cent. Finland will get 68,000 new poor people.

These concerns were heard, in a way. For 2024, Soste state aid will be cut with 60 per cent.

What are the planned Govern­ment social security cuts? Here are some examples.

Finland will get 68,000 new poor people.

Child supple­ments of 150–285 euro abolished in unemplo­y­ment benefit. Earnings-related unemplo­y­ment benefit reduced with 20 percent after two months. Plus five per cent more after eight months. Waiting period for unemplo­y­ment benefit prolonged from 5 to 7 days.

Required emplo­y­ment for earnings-related benefit doubled from a half year to one year. Wage-subsi­dised emplo­y­ment no longer counted as the emplo­y­ment condi­tion for earnings-related benefit.

Deep cuts in housing allowance. Unemplo­y­ment benefit to begin only after outstan­ding holiday compensation.

Aboli­tion of adult educa­tion benefit and job alter­na­tion leave. Cuts in benefits for unemployed elderly workers.