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Home BUSINESSGovt programme to widen income gap: THL
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Sun, 02 Aug, 2015 01:57:57 AM
FTimes-STT Report, Aug 2
 
File Photo AFP-Lehtikuva.
Government programme proposals would further increase the differences in income and undermine basic social security, assessed the adequacy of basic security assessment team of the Health and Welfare (THL).
 
THL’s Social Politics’ Research Professor Pasi Moisio said in a journal that the proposals would in many respects negate earlier strengthening in basic security made by the previous governments during 2011-2015.
 
Significant improvements in these years were a guaranteed pension reform, as well as unemployment, housing and social assistance increases. 
 
“At the same time the basic level was finally realistically corrected to what it was before the 90’s recession,” Moisio wrote in the journal.
 
In his opinion, the most significant fundamental threat now is the freezing of index increases and social assistance submissions. 
 
If inflation accelerates, of the various benefits, only social assistance would stay in line with price changes.
 
“There is a risk of distortion, so that social assistance might rise higher than unemployment benefit. They are currently, in net terms, at the same level already,” Moisio pondered.
 
According to Moisio, the government does not recognise the dramatic gap between low and high earners.
 
In the long term, the growth in inequalities of income will accelerate marginalisation and make it difficult for those in low income employment.
 
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