The Finnish government has unveiled a list of 170 million euros in cuts to social and healthcare services, including reductions in disability services, rehabilitative work activities, and child welfare staffing requirements.
A significant portion of the savings will come from a one-off 50 million euro reduction in funding for the Social Insurance Institution of Finland (Kela), which manages social benefits and services.
Kela's Director General, Outi Antila, said the cut represents around 10 percent of the agency's annual 650 million euro operating budget. She stated that she only learned of the decision on Thursday afternoon.
"It is a large sum, and this outcome came as quite a surprise to us," Antila said.
The cut comes in addition to a previously announced 45 million euro savings requirement for Kela over 2025–2027, which has already led to reductions in staff numbers and service points.
Impact on Kela's budget
The Vice Chair of Parliament's Social Affairs and Health Committee, Mia Laiho (NCP), acknowledged that such a one-time cut to an institution like Kela is unusual. However, she emphasised that the reduction applies only to 2026.
"Kela still has funds available to ensure that services and benefits are well secured and paid out. There are also financial buffers in place," Laiho said.
The 50 million euro cut targets unused funds from previous years. Antila noted that such reserves are necessary for institutions like Kela, which cannot take on debt.
"We need to have a financial buffer at the turn of the year in case unexpected situations arise where more money is needed than was budgeted the previous year," she explained.
Antila said there had been no prior discussions with the Ministry of Finance on how Kela would now prepare for unforeseen financial pressures. She expects discussions with both the Ministry of Finance and the Ministry of Social Affairs and Health to take place in the future.
Additional cuts and policy changes
In total, the government aims to achieve 166 million euros in savings through the announced measures. However, 100 million euros of the social welfare savings have not been specified in detail.
Among the changes, the government plans to relax staffing requirements for child protection units, a decision Laiho supports.
"The problem has been that full staffing levels are required even when no children are present. Adjusting staffing ratios improves opportunities for small businesses in the sector and ensures more efficient use of resources," she said.
The government also intends to replace some elderly home care services with technology, such as digital services. Laiho highlighted that digitalisation continues to offer new solutions to ease the workload of healthcare professionals. In Western Uusimaa, for example, an artificial intelligence-assisted documentation system is being trialled.
"When a nurse visits a client, AI can handle documentation, saving time for direct patient care," Laiho explained.
Further cuts possible
Minister of Finance Riikka Purra (Finns) indicated during a municipal election debate on Thursday that additional social and healthcare cuts may be required in the April budget framework negotiations.
Laiho was not surprised by the statement, noting that Finland continues to allocate increasing funds to social and healthcare services despite budget adjustments.
"One in three euros in the state budget is spent on social and healthcare services. It is crucial how we organise and provide these services," she said.