Domestic
Tools
Typography
Income-based daycare fees and housing allowances give rise to a notable inactivity trap problem, argues the Confederation of Finnish Industries (EK).
Income-based daycare fees and housing allowances give rise to a notable inactivity trap problem, argues the Confederation of Finnish Industries (EK).

Daycare fees should be cut dramatically, states the Confederation of Finnish Industries (EK).

“Income-based daycare fees, together with housing allowances that decrease as income increases, give rise to a substantial inactivity trap problem,” it argues, adding that the cut in daycare fees could be funded by lowering housing allowances.

EK estimates that the large and growing number of job openings amid conditions of high unemployment is a definite indication of unhealthy competition.

“Especially low-paying jobs, but to a lesser extent also middle-paying jobs, have to compete against living on the dole – and are often the losers of the competition. This cannot stand. Working must be economically more profitable than living on the dole,” Ilkka Oksala, the head of working life issues at EK, states in a press release.

He estimates that daycare fees should not be determined based on the earnings of parents to the extent that they are today and that both maximum monthly fees and fees for the second child should be lowered.

The housing allowance scheme, in turn, should be revised to increasingly benefit recipients who are in paid employment.

“The negative impact of an increase in earned income on housing allowances must be mitigated while lowering the general level of allowances. In order to ensure social assistance is not used to compensate for the cut in housing allowances, the contributions of recipients towards housing expenses must be re-introduced as a feature of social assistance,” says Oksala.

Aleksi Teivainen – HT
Photo: Martti Kainulainen – Lehtikuva
Source: Uusi Suomi

Partners