Social assistance 2007
Among all recipients of social assistance, the number of recipients increased only in the 60–64 age group on the previous year. While the increase is in excess of 10 per cent, the 60–64 age group accounts for only 2.9 per cent of all recipients of social assistance. In the other age groups, the number of recipients decreased.
The number of recipients decreased the most in the 20–24 age group, by approximately 10 per cent. An analysis of adult recipients by ten-year age groups shows that the 20–29 age group was greatest (21.4%) in both absolute and relative terms.
The statistics show that 70.7 per cent of the households receiving social assistance were single-person households. In turn, an analysis by type of household shows that the decrease in the number of two-parent families with children was above average. Social assistance was paid to 23.3 per cent of all singleparent households in the country. This proportion has followed a decreasing trend since 2002. Calculated by the socioeconomic status of persons applying for social assistance, about one in three households are bluecollar households. The number of households receiving social assistance increased only among pensioners (3.6%).
Households were receiving primary social assistance for an average of 5.8 months. Households receiving assistance for a short period of time, i.e. for a maximum of three months, accounted for 41 per cent of all recipient households. Households receiving assistance on a long-term basis, i.e. for 10 to 12 months, accounted for 26.4 per cent of all recipient households. Although the overall number of recipient households decreased, the number of households receiving assistance on a long-term basis showed a marked increase (3%) on the previous year. Households receiving primary social assistance on a long-term basis accounted for a larger proportion in urban municipalities (28.7%) than in rural municipalities (17.9 %).
In 2007, households were receiving the basic amount of social assistance for an average of 5.8 months, the supplementary benefit for 2.6 months, preventive social assistance for 1.7 months and rehabilitative work benefits for 4.5 months.
Social assistance was paid to 61,354 new households, which was 3 per cent down on the previous year. Individuals in these households totalled 93,433, also 3 per cent less than in the previous year. The number of new recipients rose 9 per cent in the 60–64 age group, but their proportion of all recipients was still only 3.2 per cent. New recipients accounted for 27.3 per cent of all recipients.
On average, recipient households totalled 104,117 per month. The number was highest in June and lowest in December.
Cross-sectional data on sources of income and principal economic activity are collected for November from all municipalities that use software applications in the data collection. The most frequent income sources for November were housing allowance and basic unemployment security benefits (labour market support/basic unemployment allowance). Of the households receiving assistance in November, two in three had housing allowance, about 40 per cent labour market support/basic unemployment allowance, less than 20 per cent family allowance and 15 per cent pension among their sources of income. A total of 8.2 per cent of the working-age population aged 15–74 in households receiving social assistance in November were in employment, compared with 62.6 per cent for the total working-age population (according to Labour Statistics). The rate of unemployment among the working-age population (percentage of the unemployed in work force) in the whole country was 6.8 per cent, compared with 86.4 per cent among social assistance recipients. Recipients of disability pension and chronically ill people accounted for 12.4 per cent of all recipients of social assistance, which is one percentage point up on the previous year.
Figure 2. Households according to duration of primary social assistance, percentage 1990–2007
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Expenditure on social assistance
The number of households and persons receiving social assistance has been in decline for ten years now. By contrast, gross expenditure on social assistance, annual fluctuations notwithstanding, has remained largely unchanged throughout the 2000s. In 2007, gross expenditure on social assistance amounted to 476.1 million euros. This was 7 per cent up on the previous year. Data on gross expenditure have been derived from Preliminary Statistics on Social Assistance, which provide summed-up municipal data. At the turn of the years 2005/2006, changes took place in the procedures for collecting data on gross expenditure on social assistance (cf. Quality Report on Social Assistance). As a result, it is difficult to make accurate comparisons with statistics collected before 2006.
An average of 2156 euros was paid in primary social assistance per household during the year. On average, primary social assistance per month totalled 373 euros per household and 238 euros per individual. An average of 463 euros was paid in preventive social assistance per household during the year. In relation to the 2007 price level, average primary social assistance paid to households increased 10.2 per cent and preventive social assistance 4.6 per cent on the previous year. Within the programme of rehabilitative work experience, households received on average 345 euros in premium grants and 268 euros in travel allowance during the year.
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Content of the Statistical Summary and the data collection process
The Statistical Summary provides information on the receipt of social assistance in 2007, including the composition of recipient households, duration of assistance, average amounts paid and cross-sectional data on household income sources and household members’ economic activities, based on the classification of Labour Statistics. The statistical data draw on data collected from Finnish municipalities by the National Research and Development Centre for Welfare and Health (STAKES). The statistical unit in the data is a household.
Cross-sectional data were collected only from municipalities that use software applications in the data collection. In 2007, such municipalities totalled 340. Clearly more than 95 per cent of recipient households lived in these municipalities. In 2007, Pyhtää was the only municipality unable to submit client-level data on social assistance. In addition, one municipality was wholly unable to implement and two had great difficulties in implementing the division of social assistance into a basic amount and a supplementary benefit, as set forth in the legislation from 2005. Two municipalities did not pay any social assistance at all. The tables compiled on social assistance contain both time-series and year-specific data. The data are broken down by municipality, region and province. In the statistics, the municipalities (totalling 416) were also divided into urban municipalities (64), semi-urban municipalities (74) and rural municipalities (278).
Each household and individual is registered in the data only once. Further, each client is registered only for the municipality with the greatest number of months when the recipient was registered as a client during the year. This is related to the national compilation of statistics and may cause slight differences in relation to the statistical figures published by the municipalities themselves.
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Concepts and definitions
Social assistance. According to section 1 of the Act on Social Assistance (1412/97), social assistance is last-resort financial assistance paid under social welfare to a household from municipal funds when no ordinary sources of income or other cash benefits are available or when they are not sufficient to ensure the person or family at least the minimum living needed for a life of human dignity.
Primary social assistance. A legislative amendment (1218/2005) redefined the composition of social assistance (referred to as primary social assistance in the text above) by dividing it into a basic amount and a supplementary benefit.
Basic amount of social assistance. According to section 7 a of the Act on Social Assistance, the basic amount of social assistance is a calculated amount of daily living expenses of different population groups, corresponding to a minimum level of consumption. Recipients need not report on the use of the basic amount.
Supplementary benefit of social assistance. According to section 7 c of the Act on Social Assistance, a supplementary benefit can be granted on the basis of the claimant’s special needs or circumstances when the basic amount is not sufficient to ensure minimum subsistence. The need for the supplemen-tary benefit has to be assessed on a case-by-case basis.
Preventive social assistance. According to section 13 of the Act on Social Assistance, municipalities can grant preventive social assistance and decide on the eligibility criteria. Preventive social assistance can be granted for purposes that promote the recipient's independent living. Preventive social assistance is generally paid on a short-time basis.
Assistance paid to persons participating in the rehabilitative work experience programme. According to section 10 a of the Act on Social Assistance, a premium grant is payable to a social assistance recipient for each day he or she participates in the rehabilitative work experience programme. In addition, a travel allowance is payable as social assistance for travel costs incurred when participating in the programme.
Duration of social assistance. The number of months during which assistance is received during a calendar year.
Amount of social assistance. The amount of money paid in social assistance to an individual household during the year, as gross expenditure reported by municipalities.
Household. A single person or co-resident family members. Cohabitation is equated with marriage. Social assistance recipients aged 18 or over constitute a separate single-person household even in cases where they live with their parents. Even recipients aged under 18 constitute a separate household if they have a family of their own or are economically independent of their parents and do not live with them.
Reference person. The person primarily responsible for the economic support of the household.
New household. A household that was not receiving social assistance during the previous year. Up to 2004, new households were defined using the personal identifiers of reference persons. After that the personal identifiers of both reference persons and their spouses have been used.
Type of household.
1. single man
2. single woman
3. single man with children (i.e., a man with one or more co-residing children under 18 who have no family of their own)
4. single woman with children (i.e., a woman with one or more co-residing children under 18 who have no family of their own)
5. married/cohabiting couples without children
6. married/cohabiting couples with children (i.e., married/cohabiting couples with one or more co-residing children under 18 who have no family of their own)
Socio-economic status. Based on the classification of socio-economic status devised by Statistics Finland in 1989 for Population Statistics. The socio-economic status is determined based on the household’s reference person.
Source of income. Different income sources of households in receipt of social assistance in November on the basis of the classification used by STAKES and the classification of the Social Insurance Institution concerning general housing allowance (clients in municipalities using software applications in data collection).
Economic activity. Principal economic activity of households in receipt of social assistance in November (clients in municipalities using software applications in data collection) according to the classification of Labour Statistics.
Municipality grouping. Statistics Finland groups municipalities into urban, semi-urban and rural municipalities.
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