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Finland’s government proposals may widen income gap: THL

Finland’s government proposals may widen income gap: THL

HELSINKI: Government programme proposals would further increase the differences in income and undermine basic social security, assessed the adequacy of basic security assessment team of the Health and Welfare (THL).

THL’s Social Politics’ Research Professor Pasi Moisio said in a journal that the proposals would in many respects negate earlier strengthening in basic security made by the previous governments during 2011-2015. Significant improvements in these years were a guaranteed pension reform, as well as unemployment, housing and social assistance increases.

“At the same time the basic level was finally realistically corrected to what it was before the 90’s recession,” Moisio wrote in the journal. In his opinion, the most significant fundamental threat now is the freezing of index increases and social assistance submissions. If inflation accelerates, of the various benefits, only social assistance would stay in line with price changes.