The Central Association of Finnish Pensioners' (EKL) warning about the consequences of cuts in social security benefits seems to have fallen on deaf ears as the cuts remain a part of the budget proposal unveiled by the Ministry of Finance on Thursday.
Particularly disappointing was the decision to reduce index-based benefits to generate cost savings of roughly 195 million euros, according to EKL.
- Orpo unveils budget proposal, promises new tax concessions (12 August, 2016)
- 10,000 Finns could soon themselves below the poverty line (05 August, 2016)
“We are of the opinion that the decision is unfair,” it states. “It is about to affect almost 30 social security benefits, including national pensions, guarantee pensions, child home care allowances, disability benefits and housing allowances. It would be advisable to consider how the savings could be targeted at people who are not in the most disadvantaged position.”
EKL warned previously that thousands of citizens could end up living below the poverty line due to the cuts in social security benefits.
The budget proposal also brought some welcome news to pensioners. “EKL commends the proposal for lowering the taxation of labour by 415 million euros and granting a comparable tax concession to pensioners,” the interest group says in a press release.
Aleksi Teivainen – HT
Photo: Petteri Paalasmaa – Lehtikuva
Source: Uusi Suomi