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Home BUSINESSKela DG advocates for basic income programme
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Sun, 09 Oct, 2016 01:19:35 AM
FTimes- STT Report, Oct 9
 
The outgoing Director General of national social insurance institution-Kela, Liisa Hyssälä. File Photo Lehtikuva.
The outgoing director general of the national social insurance institution-Kela, Liisa Hyssälä on Saturday said a basic income programme can safeguard people’s wellbeing at a cheaper cost than the current support system.
 
“The old systems no longer work. The systems were developed during the Second World War," Hyssälä told the national broadcaster Yle in its morning breakfast programme.
 
Hyssälä pointed out that the support system was initiated at that time to meet temporary needs. 
 
The support system, however, has become permanent and now people perceive that as entitlement.
 
“It was not supposed to be as such. The [benefits] are inappropriately expensive,” said Hyssälä.
 
The Kela DG also remarked that the lawmakers do not always think about the consequences. For example, Hyssälä mentioned the general housing allowance the last reforms to which resulted in a 20 per cent increase in expenditures.
 
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