Kela recovered EUR 117 million in benefits in 2023
Published 18/4/2024
In 2023, Kela recovered EUR 117 million in benefits that had been overpaid or paid to customers not entitled to benefit payments. At the end of the year, Kela still had recoverable benefits totalling more than EUR 137 million.
Kela has a statutory obligation to recover benefits that have been overpaid or paid to customers not entitled to benefit payments. Overpayment may happen if, for example, a customer fails to report changes in their circumstances in time and their benefit is overpaid as a result of that. In addition to benefits, Kela recovers child support debts and student loan debts repaid under the government loan guarantee scheme.
If Kela recovers benefits from a customer, the customer will receive a decision stating the amount to be recovered, the due date for payment and the payment details. The customer can make an agreement with Kela to pay back the overpayment in instalments. In certain situations, Kela can set off the overpaid benefit against, i.e. deduct it from, some other benefit that the customer receives, excluding basic social assistance. If the debt has not been repaid by the due date, Kela will send two separate payment reminders to the customer. Unpaid debt will eventually be referred to the enforcement authority for collection.
In 2023, Kela recovered a total of EUR 117 million in benefits. In terms of the amount recovered, the top 3 benefits were general housing allowance, housing allowance for pensioners and financial aid for students. In 2023, the total amount of recovered housing allowances was approximately EUR 41 million and the total amount of recovered financial aid for students approximately EUR 44 million. The recovery of financial aid for students also includes financial aid recovered as a result of an annual income check.
On 31 December 2023, the total amount of recoverable benefits was more than EUR 137 million.
Small increase in recovery of benefits compared to previous years
On 31 December 2023, the total amount of recoverable benefits was more than EUR 137 million. The euro amount of recoverable benefits was nearly EUR 10 million higher in 2023 than in 2022. The euro amount of recovered benefits also increased by EUR 3 million. In 2023, the amount of successfully recovered housing allowances and unemployment benefits was smaller than in the previous year, but the amount of successfully recovered financial aid for students increased by more than EUR 3 million.
Over the past five years, the recovery rate of Kela’s recoverable benefits has increased steadily.
