SuPer’s Inberg on the government budget session: Low-income earners’ access to affordable housing is weakening
In the government’s budget session, decisions were made on cuts, most of which will take effect in 2027. The most significant cut was the reduction of the interest subsidy authorization for state-supported housing production by €365 million, starting in 2027. This means that in the coming years, even fewer affordable rental apartments can be built.
– This especially undermines the opportunities of low-income earners, such as practical nurses and childcare workers, to access reasonably priced rental housing. The rise in rent levels disproportionately affects those working in low-wage sectors, as their incomes are insufficient to cover the higher housing costs, Inberg explains.
The shortage of affordable housing will worsen particularly in growth centers, where rent levels are already high. This will especially hinder low-wage workers’ ability to live near their workplaces. The decision will raise housing costs and also increase unemployment in the construction sector.
Social and healthcare services will also be affected. ARA loans and investment grants have been widely used to support housing for special groups such as the elderly, people with disabilities, and mental health rehabilitees. If ARA funding is cut, this could directly weaken these groups’ opportunities to obtain suitable and affordable housing.
“This especially undermines the opportunities of low-income earners, such as practical nurses and childcare workers, to access reasonably priced rental housing.”
Päivi Inberg
No relief for wellbeing services counties in the budget session
– No additional cuts were proposed for the social and healthcare sector or for early childhood education and care, which is a positive outcome. These sectors are already facing too many savings measures, says SuPer’s President Päivi Inberg.
Additional cuts to the funding of social and healthcare organizations, as well as proposed cuts targeting municipalities, were cancelled. As a result, important low-threshold support work carried out by various organizations, early childhood education and care, and basic education in municipalities were spared from adjustment measures this time.
– The funding for wellbeing services counties was not cut this time, but neither were there any promises made to ease their difficult situation, Inberg notes.
Other positive decisions in the budget session concerned reducing youth unemployment.
– It will be easier for unemployed people over 25 to study at open university, but at the same time, studying in upper secondary vocational education should also be facilitated. The previously abolished adult education allowance would have been a good tool for this, particularly in social and healthcare as well as early childhood education and care training, but it will not be reinstated, Inberg says.