The Briefing
- Finland missed its poverty reduction targets
- Almost one million face social exclusion risk
- Welfare cuts will worsen the ongoing crisis
Finland has failed to meet its national goals for reducing poverty. A new report from the Finnish Federation for Social Affairs and Health shows that the number of people struggling financially is increasing rapidly instead of decreasing.
SOSTE, an umbrella organization for Finnish social and health NGOs, published the findings on Thursday. The report warns that without immediate policy changes, the low-income population will grow by approximately 26,000 between 2026 and 2029.
This projected increase includes around 6,000 children. The data marks a sharp reversal of a 2022 national action plan designed to help marginalized residents.
Finland previously committed to reducing its at-risk population by 100,000 people before the year 2030. The baseline was set in 2019 when 838,000 residents were considered at risk of poverty or social exclusion.
Recent statistics show this number had instead climbed to 958,000 by 2024. Much of this negative trend is linked to recent economic policies and the rising cost of living.
To balance the state budget, the current Finnish government has implemented strict fiscal austerity measures. These measures include freezing the indexation of social security benefits, meaning welfare payments no longer rise automatically with inflation.
These freezes and cuts directly replaced the benefit increases originally outlined in the 2022 poverty reduction plan.
Alarming recent developments
Anna Järvinen, a special advisor at SOSTE, described the recent developments as alarming across multiple metrics.
She noted that the depth of poverty has worsened alongside record unemployment and rising homelessness. Järvinen pointed out that when livelihoods weaken and public services are trimmed, the negative effects quickly multiply.
The depth of poverty has worsened alongside record unemployment and rising homelessness.
The report stresses that vulnerable individuals are losing their safety nets just as state funding for social and health organizations is also reduced.
SOSTE calculates that continuing the benefit index freezes past 2028 will push an additional 10,000 people into low-income brackets.
To reverse this trend, the organization recommends restoring normal inflation adjustments to social benefits during the next parliamentary term.
They also suggest adding a specific child supplement to the general benefit system to support struggling families.
Finland is scheduled to conduct a broader midterm review of its poverty reduction goals later in 2026. This timeline coincides with the European Commission’s plan to publish a new anti-poverty strategy for the entire European Union.
Järvinen stated that Finland must update its national action plan to align with this upcoming EU strategy. She urged policymakers to turn the plan into concrete actions that actually bring poverty rates down.
