Finland's Ministry of Social Affairs and Health on Friday unveiled plans to change unemployment benefit payments, announcing a new type of support.
In an initial phase, it plans to introduce a general social security benefit — effectively a merger of existing support into a single benefit. It would effectively replace the labour market subsidy and basic unemployment allowance paid out by the Social Insurance Institution Kela.
According to the ministry, these plans are the first step in a broader effort to consolidate social benefits.
"In the future, we will only have one basic unemployment benefit," the ministry's department chief Liisa Siika-aho said at a press conference on Friday.
While payouts would be consolidated, the ministry said the amount of benefits paid out will not change.
The ministry stated it will circulate the proposal for comment until Midsummer and anticipates the changes will take effect at the beginning of next year.
Simplifying application process
The government also aims to simplify the process of applying for benefits. The ministry said that in future, people will be able to seek various benefits with a single application.
"Specifically, we're talking about digital applications. If a customer comes to a Kela office, they already receive a similar service [in person]," Kela's outgoing General Director Outi Antila said at the press conference.
According to Antila, more than 80 percent of applications are already done electronically.
The Minister of Social Security Sanni Grahn-Laasonen (NCP), said the government is also working to increase employment.
"The goal is that those unemployed should be receiving in-person support if their unemployment persists. This is a key part of this reform, meaning that we're trying to find ways of preventing prolonged unemployment and marginalisation," Grahn-Laasonen said.
According to the Siika-aho from the ministry, a so-called "activation" effort will also be implemented for the long-term unemployed.
"For those under the age of 25, [the activation] will start earlier, at around eight months of unemployment, and for those older than 25, at around 1.5 years," she explained.
"The aim is to meet the unemployed person more frequently and arrange services for them, according to their needs," Siika-aho said.
Users with an Yle ID can leave comments on our news stories. You can create your Yle ID via this link. Our guidelines on commenting and moderation are explained here.
