Many students will have their housing allowance reduced following annual review of the general housing allowance

Kela reviews the general housing allowance at least once a year even if there have been no changes to the household’s circumstances. For many students, this annual review is carried out in August or September. Due to the recent cuts to the general housing allowance, this time the review will lead to a reduction in the amount of housing allowance.

The general housing allowance is reviewed at least once a year. The purpose of this annual review is to make sure that the allowance is paid out at the correct amount.  
 
The recipient of housing allowance must apply for an annual review of the allowance when it has been one year since it was awarded or last reviewed. Many students last received a decision on their housing allowance in August or September 2023. 
 
Kela will send the customer a letter and instructions about the annual review of the housing allowance about two months before the review is scheduled to take place. Customers who have opted out of receiving paper mail will receive the letter only in OmaKela. The application for an annual review must be submitted to Kela before the review is scheduled to take place. If the customer fails to apply for an annual review in time, payment of the housing allowance is discontinued. 
  
The customer can apply for an annual review in OmaKela or by completing the form AT 1e and submitting it to Kela. 

The general housing allowance will decrease for all recipients

 Parliament has approved cuts to the general housing allowance and these cuts came into effect on 1 April 2024. The associated legislative changes will reduce the general housing allowance of all recipients. This includes students.  

The following changes to the general housing allowance came into effect on 1 April 2024: 

• The compensation percentage of the general housing allowance was reduced from the current 80 per cent to 70 per cent of the difference between the acceptable housing costs and the basic deductible. 
• The basic deductible for the general housing allowance went up from 42 percent to 50 percent. 
• There is no longer a EUR 300 deduction for earned income under the general housing allowance scheme.  
• The maximum housing costs taken into account in Helsinki were reduced. 

“Kela estimates that the general housing allowance of individual students will be reduced by approximately 100 euros per month on average”, says Mirja Peltonen, Senior Coordinator at Kela. 
 
As part of its discussions on spending limits, the Government has proposed that students would no longer be eligible for general housing allowance starting from 1 August 2025. Instead, they would receive a housing supplement for students. Kela will provide further information to the public as the legislative process moves forward. 

An interim review may be necessary if a household’s circumstances change

If a customer or a person belonging to the same household as the customer experiences a change in circumstances, the housing allowance must be reviewed before the annual review is scheduled to take place. This is called an interim review. 
 
The customer must apply for an interim review if for example the combined income of the household increases by at least EUR 400 per month or if the housing costs decrease by at least EUR 50 per month. The customer can also apply for an interim review if the combined income decreases by at least EUR 200 per month or the housing costs increase by at least EUR 50 per month.  
 
Before filing an application for an interim review, the customer can call Kela's customer service number 020 634 2550 to find out if a review of the housing allowance is necessary.

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