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Home BUSINESSKela starts basic income support next year
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Fri, 05 Feb, 2016 12:02:51 AM
FTimes – STT Report, Feb 5
 
File Photo Lehtikuva.
Basic income support will come from Kela from the beginning of next year, when the basic income approval and payments will be transferred to it from the municipalities.
 
According to Kela, the transfer creates for the customer a “one-stop shop.” Kela will determine the rights for social assistance and deliver applications for supplementary and preventative support to the municipalities.
 
More than 90 per cent of social assistance recipients are expected to receive Kela benefits.
 
The change was sought so that customers seeking basic income support are treated as fairly as possible, regardless of their place of residence.
 
The transfer of basic social assistance administration to Kela was also motivated by savings in operating costs. The transfer could save the municipalities a total of about 69 million euros a year.
 
Also, student financial aid decisions at universities will end in the next two years.
 
Kela has terminated the agreements in which the majority of universities decide their own student financial aid solutions. 
 
Kela justifies its decision with the need to simplify the benefits system and to better define its processes.
 
The decision does not affect student financial aid services this year.
 
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