VN TEAS project examines the effects of income support funding on the activities of municipalities

The aim of this ongoing VN TEAS research project is to collect information on how financial responsibility for basic income support is reflected in the operations of the municipalities and how the financing model guides the operations and decision-making of the municipalities. The project also assesses the opportunities for municipalities to influence the use and expenditure of income support and whether the municipality’s financial contribution to the cost of basic income support has acted as an incentive for municipalities to reduce and prevent the need for income support.

The study also aims to make recommendations on how the financial system could be developed in a more effective direction and how the basic income support financing system could be developed as part of future social and health care and social security reforms. NHG (Nordic Healthcare Group) acts as the main project contractor with MDI as a subcontractor. The work will be completed by the end of March 2021.

Income support is financial support for social welfare that serves as a last safety net for people and families, ensuring an adequate income for a dignified life. Prior to 2006, municipalities were fully responsible for income support expenditure. In 2006, income support was restructured and the state took over responsibility for half of the expenditure on basic income support. Since 2017, the granting of basic income support has been, technically, the responsibility of Kela.