Government proposal on the budget proposal for the Ministry of Social Affairs and Health and its branch of government for 2026

The Finnish Government proposes EUR 14.8 billion in appropriations for the Ministry of Social Affairs and Health and its branch of government for 2026. This is about EUR 0.5 billion less than in the 2025 Budget.

The funding of wellbeing services counties is not included in the appropriations for the Ministry of Social Affairs and Health and its branch of government. Instead, it falls under the main title of the Ministry of Finance.

Of the appropriations for the Ministry of Social Affairs and Health and its branch of government, approximately 37 per cent will be allocated to pensions, approximately 29 per cent to offsetting family and housing costs and to basic social assistance, approximately 13 per cent to unemployment security, approximately 12 per cent to health insurance, approximately 2 per cent to supporting healthcare and social welfare and approximately 2 per cent to grants for the promotion of health and social wellbeing. Of the appropriations under the main title of expenditure, 0.4–1.1 per cent will be allocated to each of the other classes of the main title.  

Key changes affecting the level of appropriations

The level of appropriations for the Ministry of Social Affairs and Health and its branch of government is affected by revised needs assessments of variable appropriation items, by measures adopted in line with the Programme of Prime Minister Petteri Orpo’s Government and by decisions made in the government spending limits discussions in spring 2024 and 2025.

• The amount of the maternity grant and the value of the maternity package will be increased by EUR 40 to EUR 210 as from 1 April 2026. A total of EUR 1.32 million will be allocated for this purpose.
• Reimbursements for private healthcare appointments with general practitioners or specialists paid by the Social Insurance Institution of Finland (Kela) will be reduced from EUR 30 to about EUR 8. These measures will decrease the central government’s share of costs by EUR 29.2 million. The measures will not apply to the other expansions made to the reimbursements for medical expenses paid by Kela (including fertility treatments, oral healthcare, gynaecologist appointments and physiotherapy) or to the freedom of choice pilot for persons aged 65 and over.
• A general increase of EUR 3.45 million is proposed for shelters for victims of domestic violence to ensure a sufficient number of shelter places.
• Transferring students from the scope of the general housing allowance to the scope of the student housing supplement will reduce the appropriation for general housing allowance by EUR 219 million.
• The comprehensive reform of social assistance will cut appropriations by EUR 57 million.
• A one-off saving of EUR 50 million will be allocated to Kela’s operating expenses.
• The countrywide freedom of choice pilot for persons aged 65 and over will be allocated EUR 44.5 million.
• An increase of EUR 17.5 million is proposed for preventing drug-related deaths among young people and for eliminating hepatitis C.
• An additional appropriation of EUR 7.5 million will be allocated to measures to strengthen preparedness and readiness in healthcare and social welfare.
• A total of EUR 7.6 million is proposed for mediation in criminal and civil matters. This sum includes an increase of EUR 0.5 million owing to growing costs.

More detailed content of the proposal

Family benefits, housing support and Kela’s operating expenses

An appropriation of around EUR 4.3 billion is proposed for offsetting family and housing costs and for basic social assistance and certain other services. This is EUR 419 million less than in the 2025 Budget. The main reasons for the reduction are the reforms outlined in the Government Programme and the changes to the needs assessments for family benefits and general housing allowance.

Transferring students from the scope of the general housing allowance to the scope of the student housing supplement will yield the biggest individual saving, reducing the appropriation for the housing allowance item by EUR 219 million.

The child maintenance allowance system will be reformed and the role of child support as the primary means of securing the maintenance of a child will be strengthened. The savings impact of this change will be EUR 3 million, of which EUR 1 million was included in the 2025 Budget.

A total of EUR 452 million is proposed in appropriations for Kela’s operating expenses, which is EUR 42 million less than in the 2025 Budget. The appropriations take into account a number of changes, including growing pension costs, changes in the level of earnings, the freedom of choice pilot for reimbursements for medical expenses and a one-off saving of EUR 50 million in Kela's operating expenses.

Development of social security and services for unemployed people

The Government proposes that EUR 2.1 billion in appropriations be allocated to the Ministry of Social Affairs and Health for unemployment security for 2026. This is EUR 183 million more than in the 2025 Budget. The amount of the appropriation is reduced by the changes to unemployment security agreed in the Government Programme, while it is increased by, for example, the estimated growth of unemployment that is due to the economic situation.

The government proposals on the comprehensive reform of social assistance, on the general social security benefit and on employment services and unemployment security sanctions will have a direct impact on general government finances, strengthening them by about EUR 78 million (at the 2027 level). The proposals are also expected to boost employment and thereby general government finances by around EUR 48 million (at the 2027 level). All in all, they are estimated to strengthen general government finances by approximately EUR 126 million (at the 2027 level).

The first stage of the reform on the general social security benefit outlined in the Government Programme will enter into force on 1 May 2026. In the first stage, the general social security benefit will be a new social security benefit for unemployed jobseekers, replacing labour market subsidy and basic unemployment allowance. Although the reform does not include any savings targets, the introduction of the general social security benefit is estimated to strengthen general government finances by EUR 4.2 million at the 2027 level. Of this, EUR 1.8 million will be allocated to the central government’s share of costs in 2026. 

The changes to social assistance will, among other things, strengthen the obligations of recipients to apply for primary benefits and full-time work. The aim is to clarify the role of social assistance as a last-resort and temporary form of assistance and to strengthen general government finances. The proposal is estimated to directly strengthen general government finances by EUR 70 million (at the 2027 level) when taking account of the changes to benefits and tax revenue. The reform is expected to increase implementation costs by a total of EUR 18 million. In addition, it is estimated to boost employment by 1,200 people, which would strengthen general government finances by about EUR 29 million. The comprehensive reform of social assistance, which will be implemented as part of the broader social security reform, will decrease the need for appropriations by EUR 57 million in 2026 when taking into account the reduction of EUR 107 million in social assistance expenditure and the increase of EUR 50 million in the basic security component of unemployment benefits.

It is proposed that the unemployment security sanctions for failing to seek employment or to participate in employment services be tightened. The relevant government proposal prepared by the Ministry of Economic Affairs and Employment is expected to strengthen general government finances by EUR 14.9 million (at the 2027 level). In addition, the reform and the changes to employment services are expected to boost employment by 400 people, which would strengthen general government finances by EUR 9.7 million (at the 2027 level). The reform will decrease the need for appropriations under the main title of the Ministry of Social Affairs and Health by a total of EUR 4.0 million in 2026, taking into account the reduction in unemployment security costs and the increase in the costs of housing allowances and social assistance.

Health insurance and reimbursements for medical expenses

An appropriation of EUR 1.8 billion is proposed for health insurance. This is EUR 82 million less than in the 2025 Budget. The main reason for the reduction is the implementation of reforms set out in the Government Programme.

A total of EUR 44.5 million will be allocated to the central government’s share of the costs arising from the countrywide freedom of choice pilot for persons aged 65 and over. Since 1 September 2025, persons aged 65 and over have paid a deductible equal to the client fee in public healthcare when they see a private general practitioner.

The central government funding set aside for the development of reimbursements for medical expenses throughout the entire parliamentary term will be reduced from EUR 355 million to around EUR 304 million. Reimbursements for private healthcare appointments with general practitioners or specialists paid by Kela will be reduced from EUR 30 to about EUR 8. The expansions made to reimbursements (including infertility treatments, dental care, gynaecologist appointments and physiotherapy) will be maintained. The freedom of choice pilot where the cost of private healthcare appointments will be reduced for people aged 65 and over will be implemented as planned. 

In future, the repayments made to the National Health Insurance Fund as part of the conditional reimbursement procedure will be used in full to reduce the central government’s share of the costs of the medical expenses insurance. This will reduce the central government’s share of the costs by EUR 43.7 million.

Reducing the medicine tariff will cut medicine reimbursement expenditure by EUR 30 million, of which the central government’s share of costs is EUR 15.4 million. At the same time, the medicine costs incurred by the users of medicines will decrease by EUR 6 million. In addition, the pharmacy tax will be reformed so that, in future, the tax will be determined by sales margin instead of turnover.

In future, the range of healthcare services available to individuals who are staying in the country illegally will be curtailed so that, as a rule, only urgent care will be provided. This will generate savings of EUR 0.56 million in the central government’s share of the costs of the medical expenses insurance.

Pension expenditure and the pension security of entrepreneurs and self-employed people

An appropriation of EUR 5.5 billion is proposed for pensions. This is EUR 24 million less than in the 2025 Budget. The decrease is due, in particular, to lower needs estimates and to the changes made to the housing allowance for pensioners.

Changes are proposed to the adjustment of the earnings-related pension income of entrepreneurs and self-employed persons at the start of 2026. For those who started their business in 2023–2025, the adjustment limit for the first confirmed income in the income review for 2026–2028 will be set at EUR 4,000, which is the same level as for other entrepreneurs and self-employed persons. This will increase the central government’s share of the costs for the pensions of entrepreneurs and self-employed persons by EUR 15 million.

Support and rehabilitation services for veterans

A sum of EUR 89.3 million is proposed in the appropriation for veterans. This is EUR 33.8 million less than in the 2025 Budget. The reason for the reduction is the diminishing number of veterans.

Of the proposed sum, EUR 35.6 million will be allocated to military injuries indemnities and the operating costs of institutions for war invalids, EUR 2.3 million for front veterans’ supplements and EUR 50 million for the rehabilitation of front veterans and for services that facilitate their living at home. In addition, a total of EUR 0.8 million is proposed for the rehabilitation of disabled veterans’ spouses and of those who served in certain war-time tasks and EUR 0.6 million for the central government compensation for the care of those who suffered in the wars.

Supporting healthcare and social welfare

A sum of EUR 331 million is proposed from the appropriations of the Ministry of Social Affairs and Health and its branch of government for supporting the structure of healthcare and social welfare services organised by the wellbeing services counties. This is approximately EUR 27 million less than in the 2025 Budget.

University-level research in healthcare and social welfare is proposed to receive EUR 40 million. A sum of EUR 89.9 million is proposed for professional specialisation education, including a one-off reduction of EUR 15 million and a productivity saving of EUR 3.1 million compared to the previous year.

Social justice measures

As part of the social justice package outlined in the Government Programme, EUR 10 million is proposed for the elimination of hepatitis C and EUR 7.4 million for the prevention of drug-related deaths among young people. A portion of the latter sum, EUR 1 million, will be channelled to organisations through the grants awarded by the Funding Centre for Social Welfare and Health Organisations STEA. In addition, EUR 0.5 million is proposed for launching a hybrid model for child welfare.

Healthcare and mental health services for students

A sum of EUR 73.3 million is proposed for healthcare services for students, organised by the Finnish Student Health Service (YTHS). Of this sum, EUR 1 million will be allocated as fixed-term support to students’ mental health services. The appropriation will also include an increase of EUR 0.6 million owing to changes to the maximum waiting times for access to care and therapy.

A sum of EUR 2 million is proposed for developing low-threshold assistance and services for mental health clients and EUR 0.3 million for continuing the Programme for Suicide Prevention.

Security, preparedness and support for social services

A discretionary government grant of EUR 41.1 million is proposed for FinnHEMS Oy for helicopter emergency medical services. This is EUR 0.7 million more than in the 2025 Budget.

A sum of EUR 7.5 million is proposed for maintaining the healthcare preparedness and readiness of the Finnish Defence Forces.

Shelters for victims of domestic violence will receive a total of EUR 31 million in appropriations, including a general increase of EUR 3.45 million to ensure a sufficient number of shelter places.

A total of EUR 7.6 million is proposed for mediation in criminal and certain civil matters. Approximately EUR 1.3 million is proposed for the activities of centres of excellence in social welfare.

Promotion of health and functioning

Approximately EUR 59.6 million is proposed for the promotion of health and functioning. This is EUR 0.15 million more than in the 2025 Budget. As part of the investment programme outlined in the Government Programme, EUR 6.5 million is proposed for continued efforts to promote the functioning of older adults, to help them cope at home and to support informal carers. In addition, EUR 2.5 million will be allocated to providing special care to young people and EUR 0.5 million to drug education.

Farm relief services for farmers and fur producers

A total of EUR 128.4 million is proposed for farm relief services for farmers and fur producers. The sum is EUR 4.1 million lower than in the 2025 Budget. The main reasons for the reduction are the change in the needs assessments for farm relief and the savings in operating expenses achieved through the mergers of farm relief areas agreed earlier.

Grants for promoting wellbeing

An appropriation of EUR 268.6 million is proposed for grants to associations and foundations to help them promote health and social wellbeing. This is EUR 35.5 million less than in the 2025 Budget. In 2026, EUR 25.8 million will be dissolved from non-distributed proceeds in the balance sheet for the last time.

Funding of government agencies and public bodies

The items of the government agencies and public bodies in the government branch of the Ministry of Social Affairs and Health will include an increase of EUR 3.8 million for pay adjustments. The continuation of research institutes’ postdoctoral programmes will be allocated EUR 1.8 million. Reductions of EUR 5.4 million will be taken into account as new savings in operating expenses.

An increase of EUR 0.4 million is proposed to the items of the Finnish Institute for Health and Welfare (THL) and the Finnish Institute of Occupational Health (TTL) for the founding of centres of excellence in toxicology in Eastern Finland.

The Student Financial Aid Appeal Board will be transferred to the Social Security Appeal Board, and for this purpose, EUR 0.7 million will be transferred from the main title of the Ministry of Education and Culture.

The National Supervisory Authority for Welfare and Health (Valvira) will be merged with the new Finnish Supervisory Agency in the beginning of 2026. The operating expense item of Valvira will be abolished, and the appropriations will be transferred to the Ministry of Finance and its branch of government.

An appropriation of EUR 5 million is proposed for the implementation of a two-tier model of psychotherapy training as a transfer from the Ministry of Education and Culture. 

Other measures

Permanent food aid work through organisations, associations and parishes will be supported with a sum of EUR 3 million.

National information management in healthcare and social welfare will be further improved, for example, by developing further the Kanta Services and by modernising data production. An appropriation of EUR 21.4 million is proposed for this item. This is EUR 4.7 million less than in the 2025 Budget.

Inquiries

Veli-Mikko Niemi, Permanent Secretary, tel. +358 295 163 425
Mikko Staff, Director of Finance, tel. +358 295 163 214 
Nuutti Hyttinen, Special Adviser to the Minister of Social Affairs and Health, tel. +358 295 163 073
Hannu Peurasaari, Special Adviser to the Minister of Social Affairs and Health, tel. +358 295 163 662 
Annu Jaakkola, Special Adviser to the Minister of Social Security, tel. +358 295 163 330
Niilo Heinonen, Special Adviser to the Minister of Social Security, tel. +358 295 163 603

Email addresses are in the format [email protected]