The withering welfare state
18 July 2025
Finland’s famous social welfare model is crumbling. Since taking office in 2023, the right-wing government has imposed strict cuts on social security spending – to the point where an image of our far-right finance minister mockingly holding up a pair of scissors to symbolise the budget cuts has come to represent the current Finnish government.
The government is making these cuts mostly to fulfil its election promise to decrease national debt, arguing that the previous government’s spending was "irresponsible", and that Finland simply cannot afford to sustain its welfare state. However, over the past two years Finland’s debt has increased, partially because of the government’s tax cuts. To tackle this, the government has borrowed money from its public pension fund; an unsustainable move that only temporarily makes it look like debt did not increase.
The austere reality is showing: a recent report by Amnesty International showed that for the first time in over a decade, homelessness is on the rise in Finland. Finland’s "Housing First" model decreased homelessness by 80% between 1980 and 2023 by providing homeless people with unconditional housing instead of temporary shelters. While the country was on track to eradicate homelessness completely, the current government's social security cuts now threaten that progress.
The cuts are also likely to increase inequality in other areas, like health. Another recent study found Finland ranks among Europe’s worst for the financial burden on cancer patients. One in five Finnish cancer patients reported occasionally skipping treatment because of costs. Finnish cancer patients also reported the second-highest income loss after diagnosis: 63% of patients reported that their income decreased, and 16% said their income fell by more than €1200 a month. According to Marika Skyttä, director of health at the Finnish Cancer Society, the welfare cuts have made it even more difficult for already vulnerable people to cover out-of-pocket expenses for treatments as well as indirect costs like travel costs.
 | Niina Leppilahti |
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