The Government proposal to Parliament for the 2025 state budget was published today. The National Union of University Students in Finland (SYL) is particularly concerned about the transfer of students from the scope of general housing allowance to receiving a housing supplement as part of student financial aid, which will create a great gap in the livelihood of students and, at worst, cut up to EUR 170 a month from them. On the other hand, the budget provides much needed relief for the funding of the Finnish Student Health Service (FSHS).
SYL sees that the housing supplement is not a suitable form of support in student housing, as the government proposal contains clear oversights. The level of housing supplement is insufficient and does not cover housing costs. In addition, the students’ summer livelihoods are at risk, as the housing supplement is tied to study attainments. General housing allowance is a year-round benefit. With the reform, students will be left without housing allowance in the summer, even though the rent must also be paid for months when they are not studying.
‘As a result, students will fall even deeper into debt, and students’ opportunities to study full time will be further endangered unless this decision is re-considered,’ says Akseli Tiitta, President of SYL.
Indeed, SYL sees that housing allowance must be made a year-round benefit. Alternatively, the number of months when students can receive financial aid should be increased by at least six months, and the student loan should not be considered income during months outside studies.
The funding for the FSHS has been insufficient this year and has not matched the increase in student numbers, costs and service needs. As early as at the beginning of the year, SYL expressed concern about the adequacy of the funding provided to the FSHS this year and also raised the issue in its statement on the Government discussion this spring.
According to the information published today, the situation of the FSHS will somewhat improve next year. Among other things, the budget proposal for 2025 corrects the estimate of the number of students to be significantly higher that currently as this number is essential in FSHS funding decisions. The number of students is estimated to be 307,000 higher education students registered as present next year, which is 26,000 more than in this year’s budget.
‘The estimate of the number of students will be increased by almost 10 per cent next year. This reflects the harsh reality of the undersized budget that the FSHS has had to operate with this year,’ Tiitta points out.
The central government funding will increase by EUR 4.2 million next year, mostly thanks to the increased student number estimate. In fact, an increase of more than double of the current year’s total was proposed for central government contributions for 2025. The total funding allocated to the FSHS in the budget increased to EUR 94,170,000 in the proposal, which is 4.27 million more than this year.
The changes to the budget predict an exceptional decrease in the healthcare fee for higher education students. When the number of students in the FSHS budget is adjusted closer to the actual number, the increasing number of payers will decrease the fee paid per student. The annual health care fee for higher education students could be reduced to approximately EUR 70.55 based on the information in the budget proposal, which would be over EUR 3 less than this year.
However, a separate Government decree on the health care fee for higher education students will be issued later this autumn, in which the grounds for the total fee will be specified.
The Government proposal to Parliament for the state budget 2025 is available in its entirety at budjetti.vm.fi.
More information:
Akseli Tiitta
President, SYL
+358 (0)44 906 5004
akseli.tiitta@syl.fi
