Temporary increases to benefits for low-income families with children

Several benefits for families with children are to be raised for the duration of 2023. Private day care allowances will be increased permanently as of 1 March 2023. The annual maximum limit on out-of-pocket medicine expenses will be left at its 2022 level.

The child increase to unemployment benefits, the single-parent supplement to the child benefit, the provider supplement to the study grant and the basic amount of social assistance for children under 18 will all be raised temporarily for the duration of 2023. Parliament has approved the legislative amendments with the goal of supporting the purchasing power of low-income families with children at a time of rising prices. 

The single-parent supplement to the child benefit will be raised by 5 euros per month for 2023. The single-parent supplement will be increased by 5 euros from its current amount of 63.30 euros per month to 68.30 euros per month starting 1 January 2023. The single-parent supplement is paid to child benefit recipients who are not married or cohabiting or who are legally separated from their spouse. The supplement is paid for each child eligible for a child benefit.  

The child increases supplementing unemployment benefits will be raised by 20% for 2023. A child increase is paid to unemployment benefit recipients who provide for a minor child. The child increases to labour market subsidies and basic unemployment allowances will be raised by an additional 4.2% as an index adjustment measure. The new rates of the child increases starting 1 January 2023 will be as follows:

• for one child, up from 5.61 euros to 7.01 euros per day 
• for two children, up from 8.23 euros to 10.29 euros per day
• for three or more children, up from 10.61 euros to 13.26 euros per day.

The provider supplement to the study grant will be raised by 10 euros per month for the duration of 2023. Study grants can include a provider supplement if the recipient provides for a child under 18. Provider supplements will also be index adjusted upwards on 1 August 2023. The rates of the provider supplement will go up from 107.17 euros to 117.17 euros per month starting 1 January 2023, and further to 122.05 per month starting 1 August 2023.

The basic amount of social assistance for children under the age of 18 is currently between 282.47 euros and 373.08 euros per month. It varies both by the age of the child and the number of siblings. The basic amount of social assistance for children under 18 will be raised by 10% for the duration of 2023. Additionally, the basic amount will be index-adjusted upwards on 1 January 2023. The rate of the basic amount of social assistance for children will vary between 327.51 euros and 421.88 euros per month next year.

Care supplement to private daycare allowance to be increased permanently

The full rate of the care supplement to the private day care allowance will be increased by 100 euros starting 1 March 2023. This increase will be permanent. The private daycare allowance will also be index-adjusted upwards on 1 January 2023. The maximum care supplement will go up from 155.24 euros to 161.69 euros per month starting 1 January 2023, and further to 265.85 euros per month starting 1 March 2023.

Parents can apply for private day care allowance if their child is under school age and in the care of either a paid childminder or a private provider of early childhood education. The private day care allowance consists of a care allowance and a care supplement. The amount of the care supplement is affected by family size and gross income (i.e. income before taxes). 

The increase to the amount of the care supplement will also affect the associated income limits. Starting 1 March 2023, the income limit to qualify for the care supplement will be raised. For example, the income limit at which care supplement may no longer be paid will be 5,065 euros per month for a family of four and 4,258 euros per month for a family of three.

Annual maximum limit on out-of-pocket medicine expenses to remain at 2022 level

The annual maximum limit on out-of-pocket medicine expenses is the maximum amount that beneficiaries must annually pay out of pocket for medicines reimbursable under the National Health Insurance scheme. Once they reach the annual maximum, customers only pay a 2.50 euro copayment for each reimbursable medicine product for the rest of the year.

In 2022, the annual maximum is set at 592.16 euros. There will be no index adjustment to the annual maximum in 2023 and it will thus remain at its 2022 level.

Additional information for customers

Government proposal to Parliament HE 236/2022 vp (in Finnish)