Finland's plans to reform child benefit
The Finnish government led by Prime Minister Petteri Oreo has proposed a child benefit reform under which parents would receive a flat rate of 100 euros per month for each child up to the age of 18 – regardless of how many children live in the household. Child benefit currently ranges between 95 to 192 euros, depending on the number of children, and is paid for children up to the age of 17.
Incentive effects remain unclear
Savon Sanomat emphasises the importance of child benefit as part of the welfare state:
“The current proposal is a compromise between the existing system and a model that favours first-time mothers. ... Yet, it remains unclear how the report is supposed to achieve its objectives in terms of incentives – the supplement for the first child would barely increase while the situation for large families could worsen. ... It's true that hardly anyone has children for financial reasons alone. However, this doesn't mean that financial support plays no role in the decision to start a family. Child benefit is a cornerstone of the welfare state in symbolic terms, too.”
Revision necessary
Hämeen Sanomat welcomes the debate:
“The main bone of contention regarding child benefit is whether wealthy families should also be entitled to it. ... Another hotly debated topic is whether state benefits can actually boost the birth rate. ... There is a clear need to review the system. Child benefit has not evolved along with our society. Today there are far more separated families in which children alternate between two households on a weekly basis. ... It is very good that this issue has now been examined and analysed.”
Money won't boost the birth rate
Child benefit has not led to an increase in the birth rate, says Delfi:
“Let's face the facts: people simply don't want children! Or rather, they don't want them in the current situation, which seems so uncertain. ... Everyday economic uncertainty is something far more tangible. Nor does it help when we see how irresponsibly the state manages our collective finances. ... The bid to 'buy' the birth rate as a state project has failed – all further funding for this purpose should be discontinued.”