Image: Yle

There are more than 20,000 households in Finland with no taxable income, says the Social Insurance Institution (Kela). These are dependent on public support for rent, food and other living expenses.

The number of zero-income households has more than doubled in the past decade. In 2003, there were just some 8,000 such households, whereas at the beginning of this year there were 20,757 in this nation of 5.4 million.

According to Pertti Honkanen, a Senior Researcher at Kela, the main reason for this sharp rise was legislation that took effect in 2006. It stipulated that labour market supports can be cut off from individuals who disregard the orders of employment authorities – by refusing to take part in training programmes, for instance.

“These sanctions often have undesirable results that add to marginalisation,” he observes. “Someone who does not get unemployment benefits is usually excluded from all employment and training services.”

Honkanen says that the ranks of the income-less are particularly swelling due to the cancellation of unemployment benefits to young people who have not been trained for any job – or do not seek any training.

More long-term indigence

Kela says that long-term indigence is a growing phenomenon. Two-thirds of those currently listed as lacking any income had the same status five years ago.

Although these people receive housing subsidies and income support, they remain below the poverty line, Honkanen points out.

Reversing the growth of the population without income would require targeted employment and training schemes, he adds.

Though most income-less households consist of single people, there are also a rising number of families with children who are entirely dependent on public welfare.