The Finnish government is preparing a reform of family benefits that could increase support for the first child and introduce an equal division of payments between parents. The initiative was announced on Friday by Minister of Social Security Sanni Grahn-Laasonen (NCP).
A working group will be set up this autumn to explore changes to child benefits and other family support schemes, covering both the current and upcoming government terms.
First-born children may receive higher benefit
One of the proposals under consideration is raising the child benefit for the first child. Currently, Finland’s social benefits agency Kela pays child benefits to families with children under 17, with the first child receiving the lowest monthly amount of 94.88 euros, increasing to 192.69 euros for the fifth and subsequent children.
Grahn-Laasonen noted that “the costs and need for purchases are greatest in families when they have their first child.” Many families make significant expenses for the first time, such as buying a stroller or moving to a larger home.
Kela’s new director general, Lasse Lehtonen, also suggested making child benefits more age-sensitive and linking the highest benefit to the first child. A previous report by the Ministry of Social Affairs and Health proposed that increasing the benefit for first-time parents could help lower the age of first-time mothers and potentially influence birth rates.
However, Grahn-Laasonen emphasised that research shows financial incentives generally have only minor or temporary effects on birth rates. “In countries where various financial incentives have been tried, the effects on birth rates have been minimal or short-lived,” she said.
Child benefit to be split between parents
Another significant change would be to divide the child benefit equally between both custodial parents. According to Grahn-Laasonen, this could facilitate child support arrangements and shared custody, particularly in separation cases.
“It has also come up in various expert statements, and it was discussed in connection with a study that focused on demanding separation situations and agreements on child support. It would certainly also promote equality,” she said.
The minister underlined that developing family benefits is essential to building a more child-friendly society, ensuring that all family types and situations are treated fairly.
