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Information about cuts to students’ income

News — 23.4.2024

During the last weeks’ frame negotiations, the government decided to make cuts to students’ income. The largest cut directly affecting students is the shift from general housing allowance to a form of housing supplement.

  1. From general housing allowance to housing supplement

    To save money, students are being moved from the general housing allowance to a form of housing supplement. This means that when the change takes effect, you as a student will no longer receive the general housing allowance. The new housing supplement will likely be linked to the student allowance. The size of the new housing supplement is still being looked into, but it will likely decrease from the current level. Details are still unclear. The matter is further discussed in the working group for the total reform of student allowance at the Ministry of Education and Culture. The Student Union will inform as soon as more details become available. The change will take effect on August 1st 2025.

  2. Tax increases – Value Added Tax (VAT)

    The Orpo government has also chosen to increase certain taxes. The increase that affects students the most is an increase in the VAT. Goods and services with a 24% VAT will be raised to 25.5%. This means that most everyday services will become slightly more expensive, such as barber visits and fuel. The VAT on medicines and groceries will not be increased for now. The change is planned to take effect no later than September 1st 2024.

  3. Increases in healthcare fees

    Some fees within public healthcare will be increased. This applies to the healthcare services of wellbeing services counties. If you have prescription medication, the deductible for medications will be increased from €50 to €70 per year. At the same time, fees for doctor visits will also be raised. The extent of the increased fees is still unclear. The fees will be raised during the autumn of 2024.

The government’s decisions will hit students hard. The Student Union will keep you updated on the decisions being made. The Student Union is also working together with other student unions and the National Union of University Students in Finland to try to prevent the total dismantling of students’ basic security.