Information package: Housing benefits
Kela pays housing benefits to many low-income households. The following is a brief overview of the current state of and recent developments in housing benefits. At the end, you will find links to more information on this topic from Kela, including statistics and studies on housing benefits.
The number of housing allowance recipients decreased in 2024
Kela paid a total of EUR 2,377 million in housing benefits in 2024. This was 1.6% less in real terms compared with the previous year. In 2024, the total expenditure on general housing allowance came to EUR 1,677 million. The expenditure on housing allowance for pensioners came to EUR 685 million.
A total of 381,991 households received general housing allowance at the end of 2024. The number of recipient households decreased by 5.6%, or by about 22,700 households, compared with the end of 2023.
In December 2024, a total of 600,043 persons were living in households that were paid general housing allowance. This corresponded to 13.9% of the population under the age of 65.
The number of unemployed households increased
At the end of 2024, unemployed households accounted for 37%, student households for 35% and employed households for 16% of all general housing allowance recipients. The number and percentage of unemployed households grew from the previous year. On the other hand, the number of student households and employed households decreased by 20%.
Of the households receiving general housing allowance, 72% were single-person households, 21% families with children, 5% couples and 2% other types of households.
Cuts were made to the general housing allowance in 2024
In 2024, several changes were made to the general housing allowance. The compensation percentage of the allowance decreased from 80% to 70%, and the maximum housing costs taken into account in Helsinki were brought down to the same level as the rest of the Helsinki Metropolitan Area. In addition, the basic deductible was increased and the deduction for earned income was removed.
Some households were paid less allowance in 2024 while others lost their right to general housing allowance completely. Due to the removal of the exempt amount and the changes made to the basic deductible, the cuts especially affected employed households. The number of employed households receiving general housing allowance decreased in 2024.
Since the beginning of 2025, persons living in owner-occupied housing have not been eligible for general housing allowance. Students will be transferred from the general housing allowance scheme to the student housing supplement scheme in August 2025.
Several legislative changes to housing benefits in the 2010s
The total expenditure on general housing allowance increased in the 2010s as a result of legislative changes. The general housing allowance scheme underwent a reform in 2015, causing an increase in the scheme expenditure. The legislative amendment made at that time simplified the scheme, expanded eligibility for the benefit and increased the number of recipients.
In 2017, spending on general housing allowance increased by 16.6% as most students were transferred from the student housing supplement to the general housing allowance scheme in August of that year. The spending continued to increase in 2018, when students were covered by the general housing allowance scheme throughout the year. Most students received higher benefits as a result of the transfer to the general housing allowance scheme. As a consequence, the increase in general housing allowance expenditure was greater than the amount previously spent on student housing supplement.
Kela provides the following housing benefits: general housing allowance, housing allowance for pensioners, student housing supplement and housing assistance for conscripts. Housing costs are also taken into account when reviewing an application for basic social assistance.
