2024 draft budget of the Ministry of Social Affairs and Health and its administrative branch

The Ministry of Social Affairs and Health proposes appropriations of about EUR 16.15 billion for the Ministry and its administrative branch for 2024. This is about EUR 0.4 billion more than in the 2023 Budget. The increase is mainly due to changes in the needs assessment.

Among other things, the draft budget includes several improvements to child benefits. In addition, 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. Kela reimbursements for appointments with doctors will also be increased. 

The budget proposal includes a number of social security reforms that 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 and additional reimbursement for medicine. Unemployment security and the general housing allowance will be changed, the job alternation leave system and adult education allowance will be abolished, and reforms to social assistance will be introduced to facilitate the search for more affordable housing. 

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.

In parallel with the draft budget, the Ministry of Social Affairs and Health has prepared its proposal for the 2025–2027 General Government Fiscal Plan.

• The Ministry of Social Affairs and Health’s proposal for the 2025–2027 General Government Fiscal Plan (in Finnish)

Family package will strengthen the position of families with children

The Ministry of Social Affairs and Health proposes a sum of EUR 4.8 billion for offsetting family and housing costs and for basic social assistance and certain other services. This is EUR 130.1 million more than in 2023. The increase is mainly due to needs assessment changes associated with basic social assistance, increases to child benefits and the rise in Kela’s operating expenses.

To strengthen the position of families with children, the Ministry of Social Affairs and Health proposes a family package 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 for child benefits starting from the beginning of the year, 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. 

Index increases to the general housing allowance will be frozen. Going forward, the general housing allowance will be targeted at the groups that need it the most. The general housing allowance will no longer have the earned income allowance, the basic deductible for general housing allowance will be raised, and the level of the general housing allowance will be adjusted. In addition, the municipality categories for the general housing allowance will be merged. The general housing allowance will no longer be available for owner-occupied homes.

Reforms to social assistance will be introduced to facilitate the search for more affordable housing. The changes in question will enter into effect on 1 July 2024. 

For the operating expenses of Kela, the Ministry proposes a total of EUR 519.8 million. 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.

Reforms to unemployment security

The Ministry of Social Affairs and Health proposes an appropriation of EUR 2.1 billion for unemployment security. This is EUR 339.6 million less than in 2023. The decrease is mainly due to the effects of the reforms outlined in the Government Programme.

In unemployment security, the job alternation leave system and adult education allowance will be abolished effective from 1 August 2024. The waiting period for unemployment security will be changed from five days to seven days. The phasing of holiday compensation will be reinstated effective from 1 January 2024. Starting from the beginning of 2024, the exempt amounts of unemployment security will be abolished, as will the child increments of 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 would be accumulated on the basis of a monthly earnings limit instead of a weekly limit measured in terms of hours. In addition, index increases to unemployment benefits will be frozen. Combined, these measures will reduce the central government’s costs arising from unemployment security by EUR 318 million.

Kela reimbursements to be increased

The Ministry of Social Affairs and Health proposes an appropriation of EUR 2.35 billion for health insurance. This is EUR 60 million more than in 2023. The increase is mainly due to reforms set out in the Government Programme.

Kela reimbursements for appointments with doctors will be increased. This will cause costs of EUR 78 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. An appropriation of EUR 13.4 million is proposed for this.

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 rehabilitation allowance for young persons and the allowance for vocational rehabilitation will be lowered to the same level as the minimum amount of rehabilitation allowance.

Index increases to sickness allowance and rehabilitation allowance under the Health Insurance Act will be frozen. These measures will result in total savings of EUR 36.5 million.
An appropriation of EUR 10 million is proposed for reforms to the legislation governing cross-border healthcare.

More funding for pensions

The Ministry of Social Affairs and Health proposes an appropriation of EUR 5.5 billion for pensions. This is EUR 208 million more than in 2023. Pension expenditure will increase particularly with regard to national pensions and the pensions of entrepreneurs and agricultural entrepreneurs.
Index increases to housing allowance for pensioners will be frozen.

Support for war veterans, conscripts and their families

The Ministry of Social Affairs and Health proposes an appropriation of EUR 133.7 million for the support of 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. An appropriation of EUR 1.5 million is proposed for the rehabilitation of disabled veterans’ spouses, for the rehabilitation of those who served in certain war-time tasks and for a front-line allowance for certain foreign volunteer front-line soldiers. The Ministry proposes an appropriation of EUR 0.7 million as central government compensation for the care of those who suffered in the wars.

Support for healthcare and social welfare

The Ministry of Social Affairs and Health proposes an appropriation of EUR 392 million for healthcare and social welfare organised by the wellbeing services counties. This is EUR 36 million less than in the 2023 Budget.

The Ministry of Social Affairs and Health proposes an appropriation of EUR 28.3 million for developing the service structure of healthcare and social welfare. Of this sum, EUR 20 million would be allocated to a project trialling the use of technology in care work. The Ministry proposes an appropriation of EUR 8 million to the 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.

The government will launch a Good Work Programme to ensure the sufficiency and availability of personnel in healthcare, social welfare and rescue services. The Ministry of Social Affairs and Health proposes an appropriation of EUR 3.5 million for the implementation of the programme.

Of the funding from the EU Recovery and Resilience Plan, the Ministry proposes that EUR 43 million be allocated to its branch of government. This is EUR 75 million less than in 2023. Of the sum, EUR 38 million would be allocated to reducing the backlog in care, rehabilitation and services in healthcare and social welfare and to speeding up access to care, and EUR 5 million to strengthening mental health and working capacity.

The Ministry of Social Affairs and Health proposes central government funding of EUR 69.5 million for student healthcare provided by the Finnish Student Health Service. The proposed appropriation takes into account an allocation of EUR 1.0 million for supporting the wellbeing of university students and an increase of EUR 2.8 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.

The Ministry proposes a discretionary government grant of EUR 48.2 million for FinnHEMS Oy for air ambulance and medical helicopter operations. The Ministry of Social Affairs and Health proposes an increase of EUR 11.6 million to the appropriation, of which EUR 9.9 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.

The Ministry of Social Affairs and Health proposes a discretionary government grant of EUR 1.1 million for the activities of the Centre for Client and Patient Safety in the wellbeing services county of Ostrobothnia.

The Ministry proposes an appropriation of EUR 26.6 million for funding shelter activities, of which EUR 2 million is due to rising costs. The Ministry of Social Affairs and Health proposes an appropriation of EUR 7.1 million for mediation in criminal and civil matters, and an appropriation of EUR 2.3 million for the activities of centres of expertise in the field of social welfare.

Promoting health and functional ability

The Ministry of Social Affairs and Health proposes appropriations of EUR 61.2 million the promotion of health and functional ability. This is EUR 16.3 million less than in 2023. The Ministry proposes changes to the procurement of vaccines as follows: a total of EUR 4.4 million for the rising prices of vaccines and EUR 0.9 million for the stockpiling of vaccines. The Ministry of Social Affairs and Health proposes that the appropriations for health promotion by municipalities be increased by EUR 10 million, allocated to supporting the functional ability of the elderly, coping at home and informal caregivers.

For the national health and wellbeing programme, the Ministry proposes an appropriation of EUR 2.0 million to strengthen the impact of health and wellbeing promotion and introduce practices that have been assessed as effective and develop new solutions.

Support for farm relief services of farmers and fur producers 

The Ministry of Social Affairs and Health proposes an appropriation of EUR 129.3 million 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 extended by carry-over funding in 2024.

Institutions and agencies

The Ministry of Social Affairs and Health proposes more appropriations for the operations of the government agencies and public bodies within its administrative branch. For the Finnish Institute for Health and Welfare, the Ministry proposes an appropriation of EUR 1.5 million for the procurement of a DRG patient classification system and EUR 0.9 million for the deployment of international diagnosis classification and terminology.

For the Radiation and Nuclear Safety Authority, appropriations totalling EUR 1.65 million are proposed for preparations for the comprehensive reform of the Nuclear Energy Act and preparations for the safe deployment of small modular reactors (SMR). An appropriation of EUR 2.9 million is proposed for the Social and Health Data Permit Authority, including an increase of EUR 1.0 million to the funding of research, development and innovation activities. 

An increase of EUR 1.8 million is proposed for the Ministry of Social Affairs and Health to strengthen the guidance of wellbeing services counties and the implementation of the Government Programme.

Grants to associations and foundations 

The Ministry of Social Affairs and Health proposes an appropriation of EUR 383.6 million for grants to associations and foundations for the promotion of health and social wellbeing. This is approximately EUR 10 million more than in 2023. EUR 25.8 million is dissolved annually from non-distributed proceeds in the balance sheet during the period 2024–2026.

Information production will be reformed and a digitalisation programme will be drafted 

The Ministry of Social Affairs and Health proposes appropriations of EUR 44.2 million for national information management in healthcare and social welfare, including the reform of information production. Of the appropriations, EUR 5.0 million would be allocated to the digitalisation programme in healthcare and social welfare, and EUR 6.0 million to the development of knowledge management.

The Ministry proposes an appropriation of EUR 2.0 million for the preparation of the roadmap for pharmaceutical matters. The Ministry of Social Affairs and Health proposes an appropriation of EUR 3.0 million for permanent support for the food aid work undertaken through organisations, associations and parishes. 

The Ministry of Social Affairs and Health proposes that funding for research, development and innovation activities in its administrative branch be increased by EUR 17.6 million, allocated to the Finnish Institute for Health and Welfare, the Radiation and Nuclear Safety Authority, the Finnish Institute of Occupational Health, the Data Permit Authority, special state subsidies for research (EVO), as well as certain special projects and national centres of expertise.

Inquiries

Veli-Mikko Niemi, Permanent Secretary, tel. +358 295 163 425 (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 the service system) 
Anna Cantell-Forsbom, Director General, tel. +358 295 163 351 (status of clients and patients, services)
Liisa Siika-aho, Director General, tel. +358 295 163 085 (social insurance matters)
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, benefits, unemployment security and health insurance matters)
Jaana Rissanen, Director, tel. +358 295 163 011 (guarantee pension, compensation for military accidents)
Taru Koivisto, Director, tel. +358 295 163 323 (vaccination programme, appropriations for health promotion)
Mikko Staff, Director of Finance, tel. +358 295 163 214 (budget) 
Tanja Auvinen, Director, tel. +358 295 163 715 (equality)
Minna Saario, Director, tel. +358 295 163 146 (digitalisation of the 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 allowance, job alternation leave system, Employment Fund and the funding of unemployment benefits)

e-mail addresses are in the format [email protected]