2024 budget proposal for the Ministry of Social Affairs and Health and its branch of government

The Finnish Government proposes about EUR 16.2 billion in appropriations for the Ministry of Social Affairs and Health and its administrative branch for 2024. This is slightly over EUR 134 million more than in the 2023 Budget. The increase is due to needs assessment changes in pensions, for example, and to the implementation of reforms set out in the Government Programme.

The proposal includes changes to unemployment security and the general housing allowance, for example. In addition, reimbursements from the Social Insurance Institution of Finland (Kela) for appointments with doctors will be increased and funding for shelters for victims of domestic violence will be secured. The proposal also includes several improvements to child benefits. Rehabilitation and rehabilitation services for children and young people with neuropsychological disorders will be improved through Kela’s discretionary rehabilitation under a fixed-term programme. 

The budget proposal also entails a number of social security reforms to reduce the need for appropriations. Index increases to benefits linked to the national pension index and the consumer price index will be frozen, excluding social assistance, pensions, front-line veterans’ supplements, disability benefits, child maintenance allowance and the annual maximum limit on out-of-pocket costs for medicines.

Of the appropriations for the Ministry of Social Affairs and Health and its administrative branch, approximately 33 per cent will be allocated to pensions, 29 per cent to offsetting family and housing costs and to basic social assistance, and approximately 15 per cent to unemployment security. Health insurance will account for about 14 per cent, support for healthcare and social welfare about 2 per cent, and grants for the promotion of health and social wellbeing for about 2 per cent of the appropriations.

Reforms to unemployment security

A total of EUR 2.2 billion is proposed for unemployment security. This is EUR 187 million less than in 2023. The decrease is mainly due to the effects of the reforms outlined in the Government Programme.

The waiting period for unemployment security will be changed from five days to seven days from the beginning of 2024. The phasing of holiday compensation will be reinstated effective from 1 January 2024. Starting from the beginning of April, the exempt amounts of unemployment security will be abolished, as will the child increments to unemployment security. The extending of the prior work requirement to 12 months and making the prior work requirement earnings-based will enter into force on 1 January 2024, but their application will only begin on 1 September 2024. Making the prior work requirement earnings-based means that the prior work requirement will be accumulated on the basis of a monthly earnings limit instead of a weekly limit measured in terms of hours. Combined, these measures will reduce the central government expenditure arising from unemployment security by approximately EUR 160 million.

These changes are estimated to increase employment by more than 20,000 people, which would strengthen general government finances by about EUR 550 million. The changes would also have a direct impact on unemployment benefit expenditure, which would strengthen general government finances by about EUR 250 million. Altogether, the changes are estimated to strengthen general government expenditure by approximately EUR 800 million.

Changes to housing allowances

A number of changes will be made to the general housing allowance. The changes would concern lowering the reimbursement rate of the allowance, tightening the effect of the income that affects the allowance, and abolishing the earned income allowance and the support for owner-occupied housing. In addition, the City of Helsinki would be merged into the same municipal category with the rest of the Greater Helsinki area. The coefficients for adults and children affecting the basic deductible would be changed so that the basic deductible would be slightly lower for families with children and they would receive a slightly higher allowance. The change would mitigate the effects of other proposed changes on families with children. 

The aim of the changes proposed to the general housing allowance is to balance central government finances and curb the strong growth in housing allowance expenditure. The proposed changes are expected to reduce housing allowance expenditure by EUR 193 million next year and by EUR 402 million at the 2027 level. When account is taken of changes to other benefits, it is estimated that general government would be strengthened by EUR 308 million at the 2027 level.

In addition, the housing costs acceptable for social assistance will be clarified and tightened next year. The changes are estimated to strengthen general government finances at the 2027 level by about EUR 21.5–24.5 million a year and to increase employment by around 1,000 people.

Index increases to benefits will be frozen

Index increases to benefits linked to the national pension index and the consumer price index will be frozen for the duration of this parliamentary term, excluding social assistance, pensions, front-line veterans’ supplements, disability benefits, child maintenance allowance, the annual maximum limit on out-of-pocket costs for medicines, the basic assistance to the conscript’s allowance and the supplement to farmers’ early retirement aid. 

The number of benefits to be frozen will remain at the 2023 level. Freezing would apply to the minimum amount of daily allowance benefits under the Health Insurance Act; the minimum amount of the rehabilitation allowance for young people and for people in vocational rehabilitation; the amount of the basic unemployment allowance, of the increases to the basic unemployment allowance and of the child increments; child care allowances; the general housing allowance; the housing allowance for pensioners; the amount of the study grant, of the family provider increment to the study grant and of the learning material supplement; the basic amount of the adult education allowance; as well as the reception allowance and the spending allowance. 

The freezing of index increases will reduce benefit expenditure by about EUR 240 million in 2024 and EUR 550 million in 2027. The impact on central government expenditure will be EUR 200 million in 2024 and EUR 433 million in 2027. The final effects of freezing will depend on the future development of consumer prices. In net terms, the changes will strengthen general government finances by a maximum of EUR 383 million at the 2027 level, and they will increase employment by 22,700 people.

Kela reimbursements to be increased

Kela reimbursements for appointments with doctors will be increased from the beginning of 2024 to reduce waiting times for access to care. The reimbursement rate for appointments with general practitioners and medical specialists will be raised from EUR 8 to EUR 30 in respect of in-person appointments and to EUR 25 in respect of remote appointments. A total of about EUR 100 million will be allocated to increasing these reimbursement rates next year, with the central government contribution accounting for EUR 65.3 million. 

Rehabilitation and rehabilitation services for children and young people with neuropsychological disorders will be improved through Kela’s discretionary rehabilitation under a fixed-term programme. A total of EUR 16.75 million in additional government funding is proposed for this purpose. When taking into account the financial contribution of the insured, the overall impact of the increases will be about EUR 25 million. The additional funding will continue until the new Act on Disability Services and Assistance enters into force.

The amount of rehabilitation allowance for periods of vocational rehabilitation will be reduced to the same level as sickness allowance granted to a rehabilitation client under the Health Insurance Act. In addition, the minimum amount of the rehabilitation allowance for young people and for people in vocational rehabilitation will be lowered to the same level as the minimum amount of rehabilitation allowance. The aim of these changes is to simplify Kela’s rehabilitation benefit system and to balance general government finances.

A total of EUR 2.3 billion will be allocated to health insurance. This is EUR 23 million more than in 2023. The increase is mainly due to reforms set out in the Government Programme.

Position of families with children will be strengthened with a family package, and funding for shelters will be secured

A total of EUR 4.8 billion will be reserved for offsetting family and housing costs and for basic social assistance and certain other services. This is EUR 105 million more than in 2023. The increase is mainly due to needs assessment changes associated with basic social assistance, to increases to child benefits and to the rise in Kela’s operating expenses.

To strengthen the position of families with children, a family package will be introduced that includes an increase of EUR 26 to the child benefit of children under three years of age starting from 1 April 2024, an increase of EUR 10 to the single parent increment to child benefit starting from the beginning of 2024, and an increase of EUR 10 to the child benefit for a family’s fourth, fifth and subsequent children. Total costs of EUR 54 million will arise from these reforms.

A total of EUR 26.6 million will be reserved for funding shelters for victims of domestic violence, which includes an increase of EUR 2 million due to the rise in costs. The additional funding will be used to ensure the continuation of shelter activities. 

More funding for pensions

A total of EUR 5.5 billion is proposed for pensions. This is EUR 259 million more than in 2023. Pension expenditure will increase particularly with regard to national pensions and the pensions of entrepreneurs and farmers.

Support for war veterans and their families

An appropriation of EUR 133.7 million will be allocated for the support of war veterans. This is approximately EUR 25 million less than in 2023. The main reason for the decrease is that there are fewer veterans every year.

Of this sum, EUR 42.6 million will be allocated to military injuries indemnities and the operating costs of institutions for war invalids, EUR 3.9 million for front-line veterans’ supplements, and EUR 85 million for the rehabilitation of front-line veterans and services to support living at home. A total of EUR 1.5 million will be allocated to the rehabilitation of disabled veterans’ spouses, to the rehabilitation of those who served in certain war-time tasks and to a front-line allowance for certain foreign volunteer front-line soldiers. A sum of EUR 0.7 million will be allocated as central government compensation to the care of those who suffered in the wars.

Support for farm relief services of farmers and fur producers 

A total of EUR 129.3 million will be reserved for farm relief services for farmers and fur producers. This is EUR 2.6 million less than in 2023. The ‘Consideration for farmers’ project will be continued in 2024.

Additional funding for medical helicopter bases 

A discretionary government grant of EUR 47.5 million is proposed for FinnHEMS Oy for air ambulance and medical helicopter operations. The appropriation will increase by EUR 10.9 million, of which EUR 9.2 million is caused by the construction and commissioning expenses of the Kouvola and Pirkkala bases, and EUR 1.7 million is caused by the effects of inflation on costs.

An appropriation of EUR 2.0 million will be reserved for the preparation of the roadmap for pharmaceutical matters.

A sum of EUR 7.1 million will be allocated to mediation in criminal and civil matters, and EUR 2.3 million to the activities of centres of excellence on social welfare.

Support for healthcare and social welfare

An appropriation of EUR 361 million will be allocated to support healthcare and social welfare organised by the wellbeing services counties. This is EUR 67 million less than in the 2023 Budget. The decrease is mainly due to a reduction in EU Recovery and Resilience Plan funding.

Good Work Programme will be launched to ensure the sufficiency and availability of personnel in healthcare, social welfare and rescue services. A total of EUR 3.5 million will be reserved for the implementation of this Programme for 2024.

An appropriation of EUR 43 million will be allocated to EU Recovery and Resilience Plan funding. This is EUR 75 million less than in 2023. Of this appropriation, EUR 38 million will be allocated to reduce the backlog in care, rehabilitation and services in healthcare and social welfare and to speed up access to care, and EUR 5 million to strengthen mental health and ability to work.

A total of EUR 68.7 million in central government funding will be allocated to student healthcare provided by the Finnish Student Health Service. The appropriation takes into account an allocation of EUR 1.0 million for supporting the wellbeing of higher education students and an increase of EUR 2.0 million due to the rise in the cost level.

The appropriation also takes into account a decrease of EUR 1.1 million due to the Finnish Student Health Service’s healthcare services falling within the scope of the Coordination Regulation. This means that degree students coming from EU or EEA countries, Switzerland or the United Kingdom of Great Britain and Northern Ireland (EU degree students) would be exempted from paying the healthcare fee for student healthcare services in accordance with the EU Coordination Regulation. The costs arising from EU degree students’ use of student healthcare services would be charged to the state responsible for the student’s medical care in accordance with the Act on Cross-Border Health Care.

A discretionary government grant of EUR 1.1 million will be awarded to the Finnish Centre for Client and Patient Safety in the wellbeing services county of Ostrobothnia.

An appropriation of EUR 8 million will be allocated to improving the effectiveness of the service system in healthcare and social welfare, and an appropriation of EUR 0.3 million to continuing the Programme for Suicide Prevention.

An appropriation of EUR 10 million will be allocated to amend the Act on Cross-Border Healthcare.

Promotion of health and functioning

An appropriation of EUR 58.7 million will be allocated to the promotion of health and functioning. This is EUR 18.8 million less than in 2023. The appropriation will reduce by EUR 35 million due to a decline in the additional procurement of COVID-19 vaccines. A total of EUR 4.4. million has been taken into account for the rising prices of vaccines. The appropriation for health promotion by municipalities will be increased by EUR 9.7 million, which will be allocated to supporting the functioning of older people, their coping at home and their informal caregivers and to providing special care to young people.

An appropriation of EUR 2.0 million will be allocated to the national health and wellbeing programme to strengthen the impact of health and wellbeing promotion, to introduce practices that have been assessed as effective and to develop new solutions.

Information production will be reformed and a digitalisation programme drawn up 

An appropriation of EUR 31.8 million will be allocated to national information management in healthcare and social welfare, of which EUR 4.0 million will be allocated to the digitalisation programme in healthcare and social welfare. 

An appropriation of EUR 3.0 million will be allocated to permanent support for the food aid work undertaken through organisations, associations and parishes.

Funding for research, development and innovation activities in the Ministry’s administrative branch will be increased by EUR 5.0 million, allocated to government funding of healthcare units for university-level research and for university-level research in social work.

A total of EUR 10 million will be allocated to the research, development and innovation programme to‐boost growth and renewal in the health wellbeing sector, of which EUR 5 million will be for 2024.

Grants to associations and foundations 

Grants to associations and foundations will increase to EUR 383.6 million to help them promote health and social wellbeing. This is approximately EUR 10 million more than in 2023. A total of EUR 25.8 million will be dissolved annually from the non-distributed proceeds of the former Finnish Slot Machine Association in the balance sheet of the Ministry of Social Affairs and Health during 2024–2026.

Appropriations for the Finnish Institute for Health and Welfare

More appropriations will be reserved for the operations of the government agencies and public bodies within the Ministry’s administrative branch, for example, for the purpose of pay revisions. An appropriation of EUR 0.1 million will be allocated to the Finnish Institute for Health and Welfare for translating the Current Care Guidelines into Swedish, EUR 0.4 million for combating the avian influenza outbreak, and EUR 0.6 million for deploying international diagnosis classification and terminology.

Appropriations for and expenses of the Radiation and Nuclear Safety Authority and Kela

The appropriation for the Radiation and Nuclear Safety Authority, totalling EUR 1.65 million, takes into account the increases for preparations for the comprehensive reform of the Nuclear Energy Act and for preparations for the safe deployment of small modular reactors (SMR).

A total of EUR 519.8 million will be allocated to the operating expenses of the Social Insurance Institution of Finland (Kela). This is EUR 6.7 million more than in 2023. In addition to the increase in pension costs and changes in the earnings level, the operating expenses take into account the costs of developing the benefit and other services for clients.

Inquiries 

Veli-Mikko Niemi, Permanent Secretary, tel. +358 295 163 163,425 (general questions)
Taneli Puumalainen, Director General, tel. +358 295 163 280 (pharmaceutical services, vaccine procurement, environmental health)
Kari Hakari, Director General, tel. +358 295 163 642 (wellbeing services counties and service system) 
Anna Cantell-Forsbom, Director General, tel. +358 295 163 351 (status of clients and patients, health and social services)
Liisa Siika-aho, Director General, tel. +358 295 163 085 (pensions, social insurance, family benefits, housing benefit, unemployment benefits and health insurance)
Anna-Kaisa Iivari, Director General, tel. +358 295 163 371 (health and social services for children, young people and families, promotion of functioning and health, Funding Centre for Social Welfare and Health Organisations STEA)
Essi Rentola, Director, tel. +358 295 163 155 (social insurance, family benefits, housing benefit, unemployment benefits and health insurance)
Taru Koivisto, Director, tel. +358 295 163 323 (appropriations for health promotion)
Mikko Staff, Director of Finance, tel. +358 295 163 214 (budget)
Tanja Auvinen, Director, tel. +358 295 163 715 (gender equality)
Minna Saario, Director, tel. +358 295 163 146 (digitalisation of services of wellbeing services counties)
Nuutti Hyttinen, Special Adviser, tel. +358 295 163 073 (general questions)
Hannu Peurasaari, Special Adviser, tel. +358 295 163 662 (general questions)
Laura Rissanen, State Secretary, tel. +358 295 163 632 (general questions)
Sakari Rokkanen, Special Adviser, tel. +358 295 163 109 (general questions)
Niilo Heinonen, Special Adviser, tel. +358 295 163 603 (general questions)
Veera Svahn, Special Adviser, tel. +358 295 047 321 (unemployment security, adult education benefit, job alternation leave system, Employment Fund and funding of unemployment benefits)

Email addresses are in the format [email protected]