Draft budget of Ministry of Social Affairs and Health and its branch of government for 2026

The Ministry of Social Affairs and Health proposes appropriations of EUR 14.8 billion for the Ministry and its branch of government for 2026. This is about EUR 475 million less than in the 2025 Budget. The funding of wellbeing services counties is not included in the appropriations for the Ministry of Social Affairs and Health and its branch of government. Instead, it falls under the main title of the Ministry of Finance.

Of the appropriations for the Ministry of Social Affairs and Health and its branch of government, approximately 37 per cent would be allocated to pensions, approximately 29 per cent to offsetting family and housing costs and to basic social assistance, approximately 13 per cent to unemployment security, approximately 12 per cent to health insurance, approximately 2 per cent to supporting healthcare and social welfare and approximately 2 per cent to grants for the promotion of health and social wellbeing. Of the appropriations under the main title of expenditure, 0.4–1.1 per cent would be allocated to each of the other classes of the main title.

Consideration of the draft budget to continue in September

This press release concerns the Ministry of Social Affairs and Health’s draft budget. The Government will discuss the draft budget during its budget session on 1–2 September 2025. The Ministry of Finance then finalises the Government’s budget proposal, which will be submitted to Parliament on 22 September 2025. Parliament then approves the Budget in December.

Key changes affecting the level of appropriations

The level of appropriations for the Ministry of Social Affairs and Health and its branch government is affected by revised needs assessments of variable appropriation items, by measures adopted in line with the Programme of Prime Minister Petteri Orpo’s Government and by decisions made in the government spending limits discussions in spring 2024 and 2025.

• Transferring students from the scope of the general housing allowance to the scope of the student housing supplement would reduce the appropriation for general housing allowance by EUR 219 million.
• The comprehensive reform of social assistance would cut appropriations by EUR 49 million.
• A one-off saving of EUR 50 million would be allocated to Kela’s operating expenses.
• The countrywide freedom of choice pilot for persons aged 65 and over would be allocated EUR 44.5 million.
• An increase of EUR 22.3 million is proposed for reforming the reimbursements for medical expenses.
• An increase of EUR 17.5 million is proposed for preventing drug-related deaths among young people and for eliminating hepatitis C.
• An additional appropriation of EUR 7.5 million would be allocated to measures to strengthen preparedness and readiness in healthcare and social welfare.
• An increase of EUR 3.45 million is proposed for shelters to ensure a sufficient number of shelter places.
• An increase of EUR 0.8 million is proposed for the research, development and innovation activities of centres of excellence on social welfare.

More detailed content of the proposal:

Family benefits, housing support and Kela’s operating expenses

An appropriation of around EUR 4.3 billion is proposed for offsetting family and housing costs and for basic social assistance and certain other services. This is EUR 386 million less than in the 2025 Budget. The main reasons for the reduction are the reforms outlined in the Government Programme and the changes to the needs assessments for family benefits and general housing allowance. Transferring students from the general housing allowance to the student housing supplement would yield the biggest individual saving, reducing the appropriation for the housing allowance item by EUR 219 million.

The Social Assistance Act is being reformed as part of a broader social security reform. The reform would impose on applicants for social assistance a stronger obligation to apply for primary benefits, such as unemployment-related benefits, instead of social assistance. The comprehensive reform is expected to reduce the need for appropriations by EUR 49 million.

The child maintenance allowance system will be reformed and the role of child support as the primary means of securing the maintenance of a child will be strengthened. The reform is estimated to yield savings of EUR 2 million.

A total of EUR 462 million is proposed in appropriations for Kela’s operating expenses, which is EUR 33 million less than in the 2025 Budget. The appropriations take into account a number of changes, including growing pension costs, changes in the level of earnings, the comprehensive reform of social assistance, the freedom of choice pilot for reimbursements for medical expenses and a one-off saving of EUR 50 million in Kela's operating expenses.

Employment and social security reforms

The Ministry of Social Affairs and Health proposes EUR 1.97 billion in appropriations for unemployment security for 2026. This is EUR 86.6 million more than in the 2025 Budget. The main reasons for raising the appropriation are the impacts of reforms implemented in accordance with the Government Programme and the estimated growth of unemployment.

The Ministry of Economic Affairs and Employment is preparing a government proposal to amend the provisions on unemployment security sanctions for failing to seek employment or to participate in employment services. The sanctions system of four stages would be replaced with a two-stage system, which means that jobseekers would lose their right to unemployment benefit more quickly than at present. The aim is to emphasise the jobseeker’s own responsibility to actively seek employment and participate in the available service process and services.  Of the reductions proposed, EUR 28.1 million would be allocated to the central government’s share of the unemployment benefit in the main title of the Ministry of Social Affairs and Health. Amending the sanctions systems is estimated to increase the costs of housing allowances and social assistance by a total of EUR 24.1 million.

A new general social security benefit will be introduced for unemployed jobseekers as part of the broader social security reform, replacing labour market support and basic unemployment allowance. The introduction of means testing for the general social security benefit and the changes to the income levels of the parents of those who receive the benefit in part because they live with their parents would reduce the unemployment security costs by EUR 3.5 million compared to the current costs of labour market support and basic unemployment allowance. Of this reduction, EUR 2.5 million would be allocated to the central government’s share of the costs and EUR 1.0 million to the municipalities’ share.

A ‘Norwegian model’ will be introduced for child home care allowances. Only those who have lived in Finland or elsewhere in the EU or the EEA for at least three years before the start of the benefit will be eligible for child home care allowance. The objective is to promote the integration and language learning of children and parents. The model is estimated to increase the central government’s share of unemployment security costs by around EUR 0.6 million. Municipalities would be compensated for the associated increase in the costs of early childhood education and care.

Health insurance and reimbursements for medical expenses

A sum of EUR 1.8 billion is proposed in the appropriation for health insurance. This is EUR 23.5 million less than in the 2025 Budget. The main reason for the reduction is the implementation of reforms set out in the Government Programme.

A total of EUR 46.6 million would be allocated to the central government’s share of reforming the reimbursements for medical expenses. The sum would be EUR 22.3 million higher than in the 2025 Budget. Assisted fertility treatments and client-initiated appointments with oral hygienists and physiotherapists were made eligible for reimbursements on 1 May 2025. In addition, reimbursements were raised for gynaecologist appointments, dental care and mental health services. The central government’s share of the costs would also cover the earlier increases in reimbursement levels that entered into force on 1 January 2024.

The countrywide freedom of choice pilot for persons aged 65 and over would be allocated EUR 44.5 million. As of 1 September 2025, persons aged 65 and over will pay a deductible equal to the client fee in public healthcare when they see a private general practitioner.

In future, the repayments by pharmaceutical companies to the National Health Insurance Fund as part of the conditional reimbursement procedure would be used in full to reduce the central government’s share of the costs of the medical expenses insurance. This is expected to yield EUR 29.1 million in savings. In addition, the drug tariff will be revised and the pharmacy tax will be reformed so that, in future, the tax will be determined by sales margin instead of turnover. The central government’s share of the reimbursements for medicines would then fall by EUR 15.4 million.

In future, the range of healthcare services available to individuals who are staying in the country illegally will be curtailed so that, as a rule, only urgent care will be provided. This is estimated to cut the central government’s share of the costs of the medical expenses insurance by EUR 0.56 million.

Pension expenditure and the pension security of entrepreneurs and self-employed people

A sum of EUR 5.5 billion is proposed in the appropriation for pensions. This is EUR 69.7 million less than in the 2025 Budget. The main reasons for the reduction are the adjustments to needs assessments and the impact of changes to the housing allowance for pensioners.

Changes are proposed to the adjustment of the earnings-related pension income of entrepreneurs and self-employed persons at the start of 2026. For those who started their business in 2023–2025, the adjustment limit for the first confirmed income in the income review for 2026–2028 would be set at EUR 4,000, which is the same level as for other entrepreneurs and self-employed persons. This is expected to increase the central government’s share of the costs for the pensions of entrepreneurs and self-employed persons by EUR 4 million.

Support and rehabilitation services for veterans

A sum of EUR 89.3 million is proposed in the appropriation for veterans. This is EUR 33.8 million less than in the 2025 Budget. The reason for the reduction is the diminishing number of veterans.

Of the proposed sum, EUR 35.6 million would be allocated to military injuries indemnities and the operating costs of institutions for war invalids, EUR 2.3 million for front veterans’ supplements and EUR 50 million for the rehabilitation of front veterans and for services that facilitate their living at home. In addition, a total of EUR 0.8 million is proposed for the rehabilitation of disabled veterans’ spouses and of those who served in certain war-time tasks and EUR 0.6 million for the central government compensation for the care of those who suffered in the wars.

Supporting healthcare and social welfare

A sum of EUR 343.2 million is proposed from the appropriations of the Ministry of Social Affairs and Health and its branch of government for supporting the structure of healthcare and social welfare services organised by the wellbeing services counties. This is approximately EUR 15 million less than in the 2025 Budget.

University-level research in healthcare and social welfare is proposed to receive EUR 40 million. A sum of EUR 89.9 million is proposed for professional specialisation education, including a one-off reduction of EUR 15 million and a productivity saving of EUR 3 million.

A sum of EUR 10 million is proposed for the collaborative areas for healthcare and social welfare for the creation of research professorships. In addition, an appropriation of EUR 2.5 million is proposed for the development of the medicines data repository.

Social justice measures

As part of then social justice package outlined in the Government Programme, EUR 10 million is proposed for the elimination of hepatitis C and EUR 7.4 million for the prevention of drug-related deaths among young people. A portion of the latter sum, EUR 1 million, would be channelled to organisations through the grants awarded by the Funding Centre for Social Welfare and Health Organisations STEA. A sum of EUR 0.5 million is proposed for the launching of a hybrid model for child welfare and EUR 0.1 million for the establishment of the Barnahus project as part of the regular service system.

Healthcare and mental health services for students

A sum of EUR 73.5 million is proposed for healthcare services for students, organised by the Finnish Student Health Service (YTHS). Of this sum, EUR 1 million would be allocated as fixed-term support to students’ mental health services. The appropriation would also include a raise of EUR 0.7 million owing to changes to the maximum waiting times for access to care and therapy.

A sum of EUR 2 million is proposed for developing low threshold assistance and services for mental health clients and EUR 0.3 million for continuing the Programme for Suicide Prevention.

Security, preparedness and support for social services

A discretionary government grant of EUR 42.5 million is proposed for FinnHEMS Oy for air ambulance and medical helicopter services. This is EUR 2.1 million more than in the 2025 Budget.

A sum of EUR 7.5 million is proposed for maintaining the healthcare preparedness and readiness of the Finnish Defence Forces.

Shelters would receive a total of EUR 31 million in appropriations, including an increase of EUR 3.45 million to ensure a sufficient number of shelter places.

A sum of EUR 7.9 million is proposed for mediation in criminal and certain civil matters. Approximately EUR 2.3 million is proposed for the activities of centres of excellence on social welfare, and EUR 0.8 million of this sum would be used to strengthen resources in research and development.

Promotion of health and functioning

Approximately EUR 59.6 million is proposed for the promotion of health and functioning. This is EUR 0.15 million more than in the 2025 Budget. As part of the investment programme outlined in the Government Programme, EUR 6.5 million is proposed for continued efforts to promote the functioning of older adults, to help them cope at home and to support informal carers. In addition, EUR 2.5 million would be allocated to providing special care to young people and EUR 0.5 million to drug education.

Farm relief services for farmers and fur producers

A total of EUR 128.4 million is proposed for farm relief services for farmers and fur producers. The sum is EUR 4.1 million lower than in the 2025 Budget. The main reasons for the reduction are the changes in the needs assessments for farm relief and the savings in operating expenses achieved through the mergers of farm relief areas as decided in 2024–2027.

Grants for promoting wellbeing

An appropriation of EUR 270.6 million is proposed for grants to associations and foundations to help them promote health and social wellbeing. This is EUR 33.5 million less than in the 2025 Budget. In 2026, EUR 25.8 million would be dissolved from non-distributed proceeds in the balance sheet for the last time.

Funding of government agencies and public bodies

The items of the government agencies and public bodies in the government branch of the Ministry of Social Affairs and Health would include an increase of EUR 3.8 million for pay adjustments and a sum of EUR 8 million for increasing research and development activities. The continuation of research institutes’ postdoctoral programmes would be allocated EUR 1.8 million and the implementation of the European Health Data Space (EHDS) EUR 0.4 million.

An increase of EUR 0.4 million is proposed to the items of the Finnish Institute for Health and Welfare (THL) and the Finnish Institute of Occupational Health (TTL) for the founding of  centres of excellence in toxicology in Eastern Finland.

The Student Financial Aid Appeal Board would be transferred to the Social Security Appeal Board, and for this purpose, EUR 0.7 million would be transferred from the main title of the Ministry of Education and Culture.

The National Supervisory Authority for Welfare and Health (Valvira) will be merged with the new Finnish Supervisory Agency in the beginning of 2026. The operating expense item of Valvira will be abolished, and the appropriations will be transferred to the Ministry of Finance and its branch of government.

An increase of EUR 0.5 million is proposed to the item of THL to ensure the continuity of preparedness capabilities in pharmaceutical wholesale trade. In addition, EUR 1.2 million would be allocated to the maintenance and development of the Finnish diagnosis related groups (DRG) classification.

An appropriation of EUR 5 million is proposed for the implementation of a two-tier model of psychotherapy training as a transfer from the Ministry of Education and Culture. 

Other measures

Permanent food aid work through organisations, associations and parishes would be supported with a sum of EUR 3 million.
National information management in healthcare and social welfare would be further improved, for example, by developing further the Kanta Services and by modernising data production. An appropriation of EUR 32.8 million is proposed for this item. This is EUR 6.7 million more than in the 2025 Budget.

Inquiries:

Veli-Mikko Niemi, Permanent Secretary, tel. +358 295 163 425
Mikko Staff, Director of Finance, tel. +358 295 163 214
Nuutti Hyttinen, Special Adviser to the Minister of Social Affairs and Health, tel. +358 295 163 073
Hannu Peurasaari, Special Adviser to the Minister of Social Affairs and Health, tel. +358 295 163 662
Sakari Rokkanen, Special Adviser to the Minister of Social Security, tel. +358 295 163 109
Niilo Heinonen, Special Adviser to the Minister of Social Security, tel. +358 295 163 603

Email addresses are in the format [email protected].