Kela Expects Benefit Payments to Reach €18.1 Billion in 2026

Finland's social insurance agency, Kela, expects welfare benefit spending to increase significantly this year, reaching an estimated €18.1 billion.

According to new figures, Kela paid out a record €17.5 billion in benefits during 2025, up 1.1 percent from the previous year. The agency says rising costs for unemployment support, student benefits, social assistance and sickness-related payments will push spending even higher in 2026.

One of the biggest changes last year was in housing support. Spending on the general housing allowance fell sharply after students were moved to a different support system. As a result, student benefit payments increased considerably.

Kela also reported that spending on basic social assistance exceeded €1 billion for the first time, while unemployment benefit costs continued to rise.

Looking ahead, the agency expects unemployment support to be one of the fastest-growing areas of spending, with payments projected to reach €2.4 billion in 2026.

Despite overall welfare costs increasing, housing allowance spending is expected to continue declining due to recent policy changes.

Kela says demand for social support remains high as more people rely on unemployment, student and health-related benefits.