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Changes proposed by the Government to benefits and services for young people and students in 2025

Published 1/10/2024

Person sits in a bus.

The Government is planning changes to housing benefits for students, school transport subsidy and the waiting times guarantee and therapy guarantee for higher education students. In addition to these, it has been proposed that the minimum age for receiving several Kela benefits should be increased from 16 to 18 years of age. The Government further proposes changes to rehabilitation for young people and to the benefits which provide an income during rehabilitation. Most of the changes are intended to take effect in 2025.

Student benefits

The Government plans that all students who do not have a child they provide for would be transferred from the general housing allowance scheme to the student housing supplement scheme. Another proposed change is that the right to school transport subsidy would be limited only to students entitled to free education.

The Government is planning to transfer students from the general housing allowance scheme to the student housing supplement scheme. The maximum rate of the housing supplement would then be EUR 216, EUR 248 or EUR 296 per month, depending on the municipality in which the student lives. The amount of the housing supplement is affected only by the student’s own income. The student housing supplement would only be paid for months of study, unlike the general housing allowance, which has been paid throughout the year. These changes would not apply to students who are providing for a child.

The plan is to limit the right to school transport subsidy only to students who are entitled to free upper secondary level education. 

A further change is that student financial aid would no longer be granted to persons who receive rehabilitation allowance for the same period. This change would apply to all rehabilitation allowances. Read more about the planned changes to rehabilitation.

Both changes would enter into force on 1 August 2025. We will provide more information on any changes and their timing once Parliament has reviewed the government proposal. These changes do not apply to the academic year 2024–2025.

These changes are still government proposals that have not yet been reviewed by Parliament. These changes do not apply to the academic year 2024–2025.

Kela will provide instructions to customers about the transfer to student housing supplement in spring 2025.

You do not have to do anything about the change in school transport subsidy. According to the plan, the change would enter into force for the academic year 2025–2026. If you are entitled to free education, you will be able to apply for school transport subsidy as before. If you are not entitled to free education, you will not be able to get school transport subsidy any more after 1 August 2025.

Read more

The government proposal, in Finnish, on the website of the Ministry of Education and Culture: Hallituksen esitys eduskunnalle laeiksi opintotukilain ja yleisestä asumistuesta annetun lain muuttamisesta

The government proposal, in Finnish, on the website of the Ministry of Education and Culture: Hallituksen esitys laiksi koulumatkatukilain muuttamisesta (okm.fi)

General housing allowance

Housing supplement for students

School transport subsidy

Student health services in higher education

The Government proposes changes to the waiting times guarantee and a new form of therapy guarantee.

The planned changes to the waiting times guarantee and the therapy guarantee would also affect students using the Finnish Student Health Service, FSHS.  

The following changes would have an impact on waiting times for people aged 23 or over:  

  • Under the present rules, the waiting time for non-urgent primary healthcare services cannot generally exceed 14 days. From 1 January 2025, the maximum waiting time would be extended to 3 months.  
  • At present, the maximum waiting time for oral and dental care is 4 months. The waiting time will be further reduced to 3 months as of 1 November 2024. However, as of 1 January 2025, the maximum waiting time for oral and dental care in non-urgent primary health care would be extended to 6 months.  

The following change would have an impact on waiting times for people under 23:  

  • From 1 May 2025, short-term psychotherapy or psychosocial therapy on the basis of psychotherapy provided by primary care would have to be started within 28 days of establishing the need for such treatment, unless there is a medical, treatment-related or other reason preventing treatment.  

Kela is responsible for the provision of student healthcare services for higher education students. The Finnish Student Health Service (Finnish abbreviation YTHS) delivers student health services throughout Finland.  

The changes to waiting times would enter into force on 1 January 2025.

The new therapy guarantee would enter into force on 1 May 2025. 

We will provide more information on any changes and their timing once Parliament has reviewed the government proposal.

These changes are still government proposals that have not yet been reviewed by Parliament. You do not have to do anything.

Read more

Government proposes to allow longer waiting times for non-urgent access to primary healthcare (press release in Finnish or Swedish on the website of the Ministry of Social Affairs and Health)

Government proposes maximum waiting time for access to therapy for children and young people (Ministry of Social Affairs and Health)

Age limits for Kela benefits and rehabilitation 

The Government has proposed that the minimum age for receiving several Kela benefits should be increased from 16 to 18 years of age. In addition, the Government proposes that vocational rehabilitation for young persons should be targeted more specifically at young people at risk of social exclusion. The Government further proposes changes to the grounds for granting rehabilitation allowance and rehabilitation allowance for young persons and to the conditions for paying these benefits.

The Government has proposed that the minimum age for receiving several Kela benefits should be increased from 16 to 18 years. The change would apply to the age limits for disability pension and rehabilitation subsidy, rehabilitation allowances and sickness allowances from Kela. Changes are also proposed to the age limits for disability allowances and to payment of unemployment benefit to a minor.

The following changes would apply to young people born in 2009 or later:

  • The minimum age limit for national pension and guarantee pension would be increased from 16 to 18 years of age. This means that 18 would be the earliest possible age for receiving a rehabilitation subsidy or disability pension paid out in the form of national pension, and any supplementary guarantee pension. The same would apply to care allowance for pensioners
  • The minimum age limit for sickness allowance and partial sickness allowance would be increased from 16 to 18 years of age. 
  • The minimum age limit for rehabilitation allowance, partial rehabilitation allowance and rehabilitation allowance for young persons would be increased from 16 to 18 years of age. 

These changes would apply to young people born in 2009 or later. This means that if you were born before 1 January 2009, you may apply for these benefits and receive them even if you are under 18.  

The following change would apply to young people born in 2008 or later:

  • 17-year-olds who have suspended their compulsory education would no longer be entitled to unemployment benefit. At present, it is possible to be granted unemployment benefit at the age of 17 if you have completed compulsory education or had to suspend your compulsory education because of a long-term illness. 

This change would apply to young people born in 2008 or later.

The following change would apply to young people receiving disability allowances:

  • As of the beginning of 2027, disability allowances would be paid to recipients under the age of 18 in the form of disability allowance for children. A recipient who is over the age of 18 would either receive disability allowance for adults or care allowance for pensioners, depending on whether they receive a pension or not. The minimum age for care allowance for pensioners would be increased to 18 years of age, from 16 at present.

Most of the changes would enter into force on 1 January 2025.  

The changes concerning disability allowance would enter into force on 1 January 2027. The payment of disability allowances granted prior to the change would continue until the disability allowance ends or until a review of the disability allowance becomes necessary due to changes in the customer’s circumstances. 

We will provide more information on any changes and their timing once Parliament has reviewed the government proposal.

These changes are still government proposals that have not yet been reviewed by Parliament. The changes would not apply to those receiving benefits at present, but to future recipients. You do not have to do anything about these changes and you do not need to contact Kela.

The Government proposes that vocational rehabilitation for young persons should be more specifically targeted at young persons who are not in school or work or who are generally at risk of social exclusion. Attention would focus on a young person’s current service needs and on the specific services that could meet those needs. Vocational rehabilitation for young persons could be an option in cases where a young person is in need of rehabilitation and vocational rehabilitation for young persons can provide the service needed. In such a case, the young person would also need to be capable of participating in rehabilitation. 

The target group of vocational rehabilitation for young persons would remain unchanged: young people aged 16–29 whose functional capacity has substantially deteriorated and who do not have the ability or motivation to independently plan their own future, set goals for themselves or take steps to find work. As before, rehabilitation would be granted without a formal diagnosis of illness or disability. The services included in vocational rehabilitation for young persons will remain unchanged, too: vocational rehabilitation assessment, training try-outs, Nuotti coaching, work try-outs and job coaching.

In addition, the Government is proposing the following changes in the rehabilitation allowance paid during participation in vocational rehabilitation for young persons:

  • Participation in Nuotti coaching would no longer make participants eligible for rehabilitation allowance.
  • Rehabilitation allowance paid for waiting periods in vocational rehabilitation for young persons would generally be paid for a maximum of three months per calendar year. Previously, it has been possible to receive rehabilitation allowance for waiting periods without a maximum time limit. 
  • A further change is that student financial aid would no longer be granted to persons who receive rehabilitation allowance for the same period. This change would apply to all rehabilitation allowances. 

It has also been proposed that the minimum age limit for rehabilitation allowance should be raised. Read more about the plans for raising the age limit for rehabilitation allowance in an earlier section of this article.

A change has been proposed in the calculation formula for sickness allowance, which would also affect the amount of rehabilitation allowance. Read more about the planned change to the way sickness allowance is calculated.

According to the proposal, the changes to vocational rehabilitation for young persons and the rehabilitation allowance paid during such rehabilitation would enter into force on 1 January 2025.

The change concerning simultaneous student financial aid and rehabilitation allowance would enter into force on 1 August 2025. The change would apply to young people who enter rehabilitation on 1 August 2025 or later.

We will provide more information on any changes and their timing once Parliament has reviewed the Government proposal.

These changes are still Government proposals that have not yet been reviewed by Parliament.

If you have been granted vocational rehabilitation for young people before 1 January 2025, the change in the law will not have any effect on the decision you have received and you do not have to do anything.

If you have been granted rehabilitation allowance before 1 January 2025, the change in the law will not have any effect on the decision you have received and you do not have to do anything. The changes will affect any new decision on rehabilitation allowance that you receive, specifically if you receive a new decision on continued vocational rehabilitation for young persons and the decision is made on or after 1 January 2025.

At present, rehabilitation allowance for young persons is available to young people under the age of 20 during studies or other rehabilitation intervention whose purpose is to help the client move into work.

The Government is proposing the following changes to rehabilitation allowance for young persons:

  • Means testing would be required before rehabilitation allowance for young persons can be paid for waiting periods. 
  • Earnings and income from self-employment during the same period as rehabilitation allowance for young persons would be partially adjusted according to the rehabilitation allowance where they exceed the income limit (EUR 800 per month). 

It has also been proposed that the minimum age limit for rehabilitation allowance for young persons should be raised. Read more about plans for raising the age limit for rehabilitation allowance in an earlier section of this article.

A change has been proposed in the calculation formula for sickness allowance, which would also affect the amount of rehabilitation allowance for young persons. Read more about the planned change to the way sickness allowance is calculated.

The changes would enter into force on 1 January 2025.

We will provide more information on any changes and their timing once Parliament has reviewed the Government proposal.

These changes are still Government proposals that have not yet been reviewed by Parliament.

If you have been granted rehabilitation allowance for young persons before 1 January 2025, Kela will review your decision during January 2025 if necessary. Before the decision is reviewed, we will send you a letter with information about any future changes. You do not have to do anything now, and you do not need to contact Kela.

Read more

Government proposes that the minimum age for receiving several Kela benefits should be increased from 16 to 18 years (press release in Finnish and Swedish, website of the Ministry of Social Affairs and Health)

Government proposes changes to vocational rehabilitation for young people and to rehabilitation allowance (press release in Finnish and Swedish, website of the Ministry of Social Affairs and Health)

Rehabilitation subsidy and disability pension

Guarantee pension

Disability 

Unemployment

Who can claim sickness allowance?

Vocational rehabilitation for young persons

Rehabilitation allowance for young persons

Rehabilitation allowance 

Follow changes to social security benefits

Read more

 

Last modified 4/10/2024