Many worried people make phone calls to Kela about benefits cut

The Social Insurance Institution-Kela got many phone calls from the people who are worried about their benefits cut from the next month, said Kela in a press release on Monday.

The telephone queries started following an announcement made by Kela on March 18, which said that cuts in general housing allowances and unemployment benefits will impact about 500,000 of its clients.

According to Petteri Taponen, head of Kela’s customer service unit, many customers have telephoned Kela’s customer service with concerns over their benefits.

Kela clarified that the cuts in social security coming into effect on 1 April 2024 will affect general housing allowances and unemployment benefits. The housing allowances for pensioners will not be affected by the impending cuts in social security benefits. There will also be no reductions in child benefits.

“Kela’s customer service is getting many phonecalls from pensioners concerned about their housing allowances. Many of the callers receive the housing allowance for pensioners, which will not be changed in any way,” Taponen said, adding that there have also been misunderstandings.

The labour market subsidies, basic unemployment allowances and commuting and relocation allowances paid by Kela have included supplemental child increases. These specific types of increases will end on 1 April 2024. This will impact unemployed persons with dependent children under 18. However, child benefits and child increases linked to pensions will remain unaffected by the cuts.

“Some customers have mistakenly gotten the impression that child benefits or maintenance payments will cease entirely. We reassure them that this is not the case,” Taponen said.