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International review of approaches to tackling child poverty: Finland

A historical review of evidence on Finland's approach to tackling child poverty, drawing out the key lessons for Scotland.


Sources

1 Eurostat (2025) At-risk-of-poverty rate by poverty threshold, age and sex and Scottish Government poverty and child poverty data 2023/24, single-year estimate for children living in relative poverty in Scotland (below 60% of UK median income before housing costs)

2 Eurostat (2025) At-risk-of-poverty rate by poverty threshold, age and sex and Scottish Government poverty and child poverty data 2023/24, single-year estimate for children living in relative poverty in Scotland (below 60% of UK median income before housing costs)

3 Eurostat (2024) Key figures on European living conditions: 2024 edition, page 14

4 Ministry of Social Affairs and Health (2013) Child and family policy in Finland

5 Ministry of Social Affairs and Health (2013) Child and family policy in Finland

6 European Anti-Poverty Network (2023) Poverty Watch report Finland 2023

7 European Commission (2022) National Action Plan of Finland European Child Guarantee

8 European Parliament Fact Sheet on the European Union: The fight against poverty, social exclusion and discrimination

9 IMF Finland Dataset, World Economic Outlook October 2024

10 Solsten, E. and Meditz, S. (1988) Finland: a country study, Federal Research Division, Library of Congress and speech by Erkki Liikanen, Governor of the Bank of Finland, 7 May 2015, titled ‘Major structural change in the Finnish economy’

11 World Bank World GDP per capita (current US$) (NY.GDP.PCAP.CD)

12 Ilmakunnas, I. (2014) Societal change and poverty in Finland 1971-2011: The roles of distribution of market income, redistribution and demographic change, Research on Finnish Society Vol 7 (p.37-49)

13 Solsten, E. and Meditz, S. (1988) Finland: a country study, Federal Research Division, Library of Congress and speech by Erkki Liikanen, Governor of the Bank of Finland, 7 May 2015, titled ‘Major structural change in the Finnish economy’

14 Speech by Erkki Liikanen, Governor of the Bank of Finland, 7 May 2015, titled ‘Major structural change in the Finnish economy’

15 Speech by Erkki Liikanen, Governor of the Bank of Finland, 7 May 2015, titled ‘Major structural change in the Finnish economy’

16 Ilmakunnas, I. (2014) Societal change and poverty in Finland 1971-2011: The roles of distribution of market income, redistribution and demographic change, Research on Finnish Society Vol 7 (p.37-49) and Kautto (2003) Welfare in Finland in the 1990s, Scand J Public Health 2003; 31:1-4

17 Härtull C., Saarela, J. and Cederström, A. (2017) Income poverty in households with children: Finland 1987-2011, Finnish Journal of Social Research Vol. 10(1), pp. 43-59 (page 44)

18 World Bank World Development Indicators (SP.POP.TOTL)

19 World Bank World Development Indicator, population ages 0-14 (% of total population) (SP.POP.0014.TO.ZS) and Scotland Census results, 2022, Rounded population estimates

20 World Bank World Development Indicator, age dependency ration, young (% of working population) (SP.POP.DPND.YG)

21 World Bank World Development Indicators, population ages 0-14 as % of population (SP.POP.0014.TO.ZS), population ages 15-64 as % of population (SP.POP.1564.TO.ZS), population ages 65 and above as % of population (SP.POP.65UP.TO.ZS), and age dependency ration, young as % of working population (SP.POP.DPND.YG)

22 Eurostat (2025) at-risk-of-poverty rate 2024 for children aged less than 18 years, using 60% of median equivalised income after social transfers threshold

23 Eurostat (2025) at-risk-of-poverty rate (ilc_li02) 2024 for adults (18 years and over), using 60% of median equivalised income after social transfers threshold as percentage of population and Eurostat (2024) Key figures on European living conditions: 2024 edition, page 14

24 Statistics Finland official poverty statistics (table 016), At-risk-of-poverty rate based on disposable cash income (excl. capital gains) at 60% of median equalised income as percentage of total population

25 Riihelä et al. (2007) Economic poverty in Finland 1971-2004, Valtion taloudellinen tutkimuskeskus, Government Institute for Economic Research, Helsinki, see page 9 and figure 5

26 Eurostat (2025) at-risk-of-poverty rate for children aged less than 18 years, using 60% of median equivalised income after social transfers threshold

27 Eurostat defines material deprivation as the inability to afford some items considered by most people to be desirable or even necessary to lead an adequate life. It measures those unable to afford at least three of nine items..

28 Eurostat (2025) material and social deprivation rate (ilc_mdsd07), 2023 and 2024, for children aged less than 18 years

29 Scottish Government Child poverty summary 2025, low income and material deprivation 2023/24

30 Eurostat (2025) at-risk-of-poverty rate for children aged less than 18 years, using 60% of median equivalised income before (ilc_li09) and after social transfers threshold (ilc_li02), 2024 figures used for Finland and 2018 for the UK.

31 Obućina, O. and Ilmakunnas, I. (2020) Immigrant Child Poverty in an Emerging Country of Destination: the Evidence from Finland

32 Eurostat (2025) at-risk-of-poverty rate 2024 by household type (ilc_li03), using 60% of median equivalised income after social transfers threshold, for ‘single person with dependent child’ households and ‘two or more adults with dependent children’ households

33 OECD Data Explorer Income distribution database

34 Scottish Government Poverty and child poverty data 2021-24, three year-averages data tables, table 54 Income inequality measures, Gini coefficient (before housing costs) 2021-24

35 OECD Data Explorer Income distribution database, Palma ratio (disposable income) 2022 for Finland and Scottish Government Poverty and child poverty data 2021-24, three year-averages data tables, table 54 Income inequality measures, Palma ratio before housing costs 2021-24

36 State Treasury of Finland, Labour Market Reforms webpage, employment rate January 2025, accessed 10/03/25, Scottish Government Labour Market Trends: February 2025 publication and Eurostat (2025) in work at-risk-of-poverty rate (ilc_iw01) 2024 for Finland

37 Eurostat (2025) in work at-risk-of-poverty rate (ilc_iw01) 2018 for the UK

38 World Bank World Development Indicator, unemployment total as % of total labour force (modeled ILO estimate) (SL.UEM.TOTL.ZS)

39 Scottish Government Labour Market Trends: February 2025 publication

40 Finland data is from OECD family database, LMF1.1 A Children in households by employment status, 2018 figures,% of children in ‘jobless- all adults not working’ households and Scotland comparisons from Office of National Statistics, Children living in long-term workless households in the UK: 2023

41 Eurofound webpage, Finland: Minimum wage country profile, accessed 10/03/25.

42 Finland data is from OECD family database LMF1.1 A Children in households by employment status, 2018 figures, % of children in ‘working – all adults working’ households and Scotland comparisons from Office of National Statistics, Children in households by combined economic activity status of household members: Table K, October to December 2024, percentage of children living in working households

43 OECD family database, LMF2.3 Patterns of employment and the distribution of working hours for single parents, table A ‘Employment status of single parents’ most recent data available for 2021, % of single parents with at least one child working full-time and working part-time

44 OECD family database, LMF2.3 Patterns of employment and the distribution of working hours for single parents, table A ‘Employment status of single parents’ most recent data available for 2021, % of single parents with at least one child working full-time and working part-time

45 OECD family database, LMF2.2 Patterns of employment and the distribution of working hours for couples with children, table A ‘Patterns of employment in couples with children’, % of couple households with at least one child aged 0-14 where both partners work full-time, most recent data available for Finland 2021 and for UK 2019

46 Statistics Finland, Families by type (table 12c3), 2023, including ‘mother and children’ and ‘father and children’ households as a percentage of all households with children and Scottish Government (2024), Tackling child poverty priority families overview

47 Finland data is from OECD family database, LMF1.6 Gender differences in employment outcomes, 2021 figures

48 Finland data is from OECD family database, LMF1.6 Gender differences in employment outcomes, tabs PT_Men and PT_Women, Women’s and men’s part-time employment as a proportion of total women’s or men’s employment, 2021 figures

49 Finland data is from OECD family database, LMF1.5 (Gender pay gaps for full-time workers and earnings by educational attainment), Chart LMF1.5.A, Gender gap in median earnings of full-time employees, 2023 or latest, and LMF1.6 (Gender differences in employment outcomes), tab Managers_Women, Women’s share of managerial employment, 2021

50 UK data is from OECD family database, LMF1.5 (Gender pay gaps for full-time workers and earnings by educational attainment), Chart LMF1.5.A, Gender gap in median earnings of full-time employees, 2023 or latest, and LMF1.6 (Gender differences in employment outcomes), tab Managers_Women, Women’s share of managerial employment, 2021

51 Scottish Government (2025) Annual survey of hours and earnings: 2024, gender pay gap for median full-time hourly earnings (excluding overtime) in Scotland is 2.2% and 7% for the UK

52 Constitute webpage ‘Finland 1999 (rev. 2011)’

53 Harrikari, T. (2011) The Making of the First Child Welfare and Juvenile Crime Acts in Finland 1897-1943, Social Work and Society International Online Journal

54 Ministry of Social Affairs and Health (2013) Child and family policy in Finland and Welfare provision in Finland in the 19th and early 20th centuries

55 Harrikari, T. (2011) The Making of the First Child Welfare and Juvenile Crime Acts in Finland 1897-1943, Social Work and Society International Online Journal

56 Jalava, J. (2007) Tackling child poverty and promoting the social inclusion of children: a study of national policies, European Commission, Peer Review and Assessment in Social Inclusion

57 Forssén, K., Jaakola, AM., Ritakallio, VM. (2008) Family Policies in Finland, in: Ostner, I., Schmitt, C. (eds) Family Policies in the Context of Family Change, VS Verlag für Sozialwissenschaften

58 Hiilamo, H. (2004) Changing family policy in Sweden and Finland during the 1990s, Social Policy Administration Vol 38(1):21-40

59 Saari, J. and Kangas, O. (2007) Nine: Finland: towards more proactive policies, The Europeanisation of social protection, Bristol, UK: Policy Press and Solsten, E. and Meditz, S. (1988) Finland: a country study, Federal Research Division, Library of Congress

60 Korppi-Tommola, A. (2006) Women’s role in Finnish democracy building: The Finnish experience, Ministry for Foreign Affairs of Finland, Development Policy Information Unit

61 Hiilamo, H. (2004) Changing family policy in Sweden and Finland during the 1990s, Social Policy Administration Vol 38(1):21-40

62 Forssén, K. And Harkovita, M. (1999) Work incentives in single-parent families, in Fighting Poverty, Routledge

63 Ministry of Social Affairs and Health (2013) Child and family policy in Finland and OECD (2003) Female Labour Force Participation: Past Trends and Main Determinants in OECD Countries, OECD Economics Department Working Papers No. 376

64 Ilmakunnas, I. (2014) Societal change and poverty in Finland 1971-2011: The roles of distribution of market income, redistribution and demographic change, Research on Finnish Society Vol 7 (p.37-49)

65 World Bank World GDP per capita (current US$) (NY.GDP.PCAP.CD) and GDP per capita growth (annual %) (NY.GDP.PCAP.KD.ZG)

66 European Commission (1996) Labour market studies: Finland

67 Solsten, E. and Meditz, S. (1988) Finland: a country study, Federal Research Division, Library of Congress

68 Solsten, E. and Meditz, S. (1988) Finland: a country study, Federal Research Division, Library of Congress, page120

69 Gustafsson, B., Uusitalo, H. (1990) The welfare state and poverty in Finland and Sweden from the mid-1960s to the mid-1980s, Review of Income and Wealth Series 36, Number 3

70 Ministry of Social Affairs and Health (2006) Finland’s family policy, (in this document child benefit is referred to as child allowance)

71 Hiilamo, H. (2004) Changing family policy in Sweden and Finland during the 1990s, Social Policy Administration Vol 38(1):21-40

72 Korppi-Tommola, A. (2006) Women’s role in Finnish democracy building: The Finnish experience, Ministry for Foreign Affairs of Finland, Development Policy Information Unit

73 Ministry of Social Affairs and Health webpage ‘History: From Grand Duchy to welfare state’, accessed 11/03/25

74 Doling, J. (1990) Housing Finance in Finland

75 The Social Policy Archive for SHARE (SPLASH) webpage ‘Family Policies Finland’

76 European Commission (1996) Labour market studies: Finland

77 European Commission (1996) Labour market studies: Finland and Jalava, J. (2007) Tackling child poverty and promoting the social inclusion of children: a study of national policies, European Commission, Peer Review and Assessment in Social Inclusion

78 Solsten, E. and Meditz, S. (1988) Finland: a country study, Federal Research Division, Library of Congress and Korppi-Tommola, A. (2006) Women’s role in Finnish democracy building: The Finnish experience, Ministry for Foreign Affairs of Finland, Development Policy Information Unit

79 The Social Policy Archive for SHARE (SPLASH) webpage ‘Family Policies Finland’, accessed 11/03/25

80 The Social Policy Archive for SHARE (SPLASH) webpage ‘Family Policies Finland’, accessed 11/03/25

81 European Parliament Directorate General for Internal Policies (2013) Quality in early childhood education and care: Annex report country & case studies

82 Morning, A. and Lammi-Taskula, J. (2020) Parental Leave Reforms in Finland 1977–2019 from a Diversity Perspective, in Social Inclusion, 2021, vol 9:2, pages 338-349

83 The Social Policy Archive for SHARE (SPLASH) webpage ‘Family Policies Finland’, accessed 11/03/25

84 The Social Policy Archive for SHARE (SPLASH) webpage ‘Family Policies Finland’, accessed 11/03/25

85 Ministry of Social Affairs and Health (2013) Child and family policy in Finland

86 Solsten, E. and Meditz, S. (1988) Finland: a country study, Federal Research Division, Library of Congress

87 Ministry of Social Affairs and Health webpage ‘History: From Grand Duchy to welfare state’, accessed 11/03/25

88 Statistics Finland official poverty statistics (table 016), At-risk-of-poverty rate based on disposable cash income (excl. capital gains) at 60% of median equalised income as percentage of total population

89 Riihelä et al. (2007) Economic poverty in Finland 1971-2004, Valtion taloudellinen tutkimuskeskus, Government Institute for Economic Research, Helsinki

90 Kautto (2003) Welfare in Finland in the 1990s, Scand J Public Health 2003; 31:1-4

91 Ilmakunnas, I. (2014) Societal change and poverty in Finland 1971-2011: The roles of distribution of market income, redistribution and demographic change, Research on Finnish Society Vol 7 (p.37-49)

92 Haataja (2005) Outcomes of the Two 1990s Family Policy Reforms at the Turn of the 2000s in Finland, Government Institute for Economic Research (VATT)

93 Forssén, K. (1998) Child Poverty and Family Poverty in OECD Countries, LIS Working Paper Series, No. 178, Luxembourg Income Study (LIS), Luxembourg

94 European Commission (1996) Labour market studies: Finland

95 Speech by Erkki Liikanen, Governor of the Bank of Finland, 7 May 2015, titled ‘Major structural change in the Finnish economy’, Ilmakunnas, I. (2014) Societal change and poverty in Finland 1971-2011: The roles of distribution of market income, redistribution and demographic change, Research on Finnish Society Vol 7 (p.37-49) and Kautto (2003) Welfare in Finland in the 1990s, Scand J Public Health 2003; 31:1-4

96 Haataja (2005) Outcomes of the Two 1990s Family Policy Reforms at the Turn of the 2000s in Finland, Government Institute for Economic Research (VATT)

97 Haataja (2005) Outcomes of the Two 1990s Family Policy Reforms at the Turn of the 2000s in Finland, Government Institute for Economic Research (VATT)

98 European Commission (1996) Labour market studies: Finland

99 Haataja (2005) Outcomes of the Two 1990s Family Policy Reforms at the Turn of the 2000s in Finland, Government Institute for Economic Research (VATT)

100 Ministry of Social Affairs and Health webpage ‘History: From Grand Duchy to welfare state’, accessed 11/03/25 and Nyby et al. (2017) The role of discourse in family policy reform – the case of Finland, Critical Social Policy, 38(3), 567-588

101 Nyby et al. (2017) The role of discourse in family policy reform – the case of Finland, Critical Social Policy, 38(3), 567-588

102 Nyby et al. (2017) The role of discourse in family policy reform – the case of Finland, Critical Social Policy, 38(3), 567-588

103 Ministry of Social Affairs and Health (1999) Poverty and social exclusion in Finland in the 1990s

104 Ministry of Social Affairs and Health (2006) Finland’s family policy

105 The Social Policy Archive for SHARE (SPLASH) webpage ‘Family Policies Finland’,page 3, accessed 11/03/25 and Friedrich Ebert Stiftung Cash for Childcare

106 Härkönen J, Jalovaara M, Lappalainen E, Miettinen A. (2023) Double Disadvantage in a Nordic Welfare State: A Demographic Analysis of the Single-Parent Employment Gap in Finland, 1987-2018, European Journal of Population 39(1):2

107 Sipilä, J. and Korpinen, J. (1998) Cash versus child care services in Finland, Social Policy and Administration, Vol 32(3):263-277 and Haataja (2005) Outcomes of the Two 1990s Family Policy Reforms at the Turn of the 2000s in Finland, Government Institute for Economic Research (VATT)

108 Ilmakunnas, I. (2014) Societal change and poverty in Finland 1971-2011: The roles of distribution of market income, redistribution and demographic change, Research on Finnish Society Vol 7 (p.37-49)

109 Nyby et al. (2017) The role of discourse in family policy reform – the case of Finland, Critical Social Policy, 38(3), 567-588

110 TYJ webpage ‘New terms for earnings-related unemployment benefit’, accessed 11/03/25 and Koko (The unemployment fund for highly educated) webpage ‘Changes to the unemployment security system 2024-24’, accessed 11/03/25

111 Council of Europe European Social Charter report (2024) Comments submitted by the Central Union for Child Welfare, Finnish League for Human Rights, Finnish Society for Social Rights, Mannerheim League for Child Welfare, and SOSTE Finnish Federation for Social Affairs and Health concerning the Ad hoc report on the cost-of-living crisis submitted by the Government of Finland

112 Kela webpage ‘General housing allowance will no longer be available for owner-occupied homes starting 1 January 2025’, accessed 11/03/25

113 Härkönen J, Jalovaara M, Lappalainen E, Miettinen A. (2023) Double Disadvantage in a Nordic Welfare State: A Demographic Analysis of the Single-Parent Employment Gap in Finland, 1987-2018, European Journal of Population 39(1):2

114 Härkönen J, Jalovaara M, Lappalainen E, Miettinen A. (2023) Double Disadvantage in a Nordic Welfare State: A Demographic Analysis of the Single-Parent Employment Gap in Finland, 1987-2018, European Journal of Population 39(1):2

115 Finnwards webpage ‘Labour Union Membership in Finland in 2021’, accessed 11/03/25

116 Härkönen J, Jalovaara M, Lappalainen E, Miettinen A. (2023) Double Disadvantage in a Nordic Welfare State: A Demographic Analysis of the Single-Parent Employment Gap in Finland, 1987-2018, European Journal of Population 39(1):2

117 European Anti-Poverty Network (2023) Poverty watch report Finland 2023

118 Child Strategy webpage ‘Finland that respects the rights of the child’, accessed 11/03/25

119 OECD (2024) Taxing wages - Finland and OECD (2024) Taxing wages – the United Kingdom

120 OECD (2024) Taxing wages - Finland and OECD (2024) Taxing wages – the United Kingdom

121 IFS (2023) Country Studies: Inequalities in Europe and North America, Inequality in Finland: 1987-2021

122 Kela webpage ‘Child benefit’, How much is the child benefit?, accessed 11/03/25 and HMRC webpage ‘Guidance: Tax credits, Child Benefit and Guardian’s Allowance – rates and allowances’, accessed 11/03/25 and Social Security Scotland webpage ‘Overview of the Scottish Child Payment’, accessed 11/03/25

123 Kela webpage ‘How do income and assets affect general housing allowance?’, accessed 11/03/25

124 Kela (2024) Kela Statistical Yearbook 2023: Official Statistics of Finland, Social Protection 2024

125 Kela (2024) Kela Statistical Yearbook 2023: Official Statistics of Finland, Social Protection 2024

126 Kela (2024) Kela Statistical Yearbook 2023: Official Statistics of Finland, Social Protection 2024

127 Kela webpage ‘Basic amount of social assistance’, A basic amount is calculated for each recipient, accessed 11/03/25, GOV.UK webpage ‘Universal Credit: What you’ll get’, accessed 11/03/25 and Turn2us webpage ‘Universal Credit (UC) - Additional Elements of Universal Credit (UC)’, accessed 11/03/25

128 Kela (2024) Kela Statistical Yearbook 2023: Official Statistics of Finland, Social Protection 2024

129 Kela webpage ‘Child maintenance allowance’, accessed 11/03/25

130 TYJ webpage ‘Join an unemployment fund, when you move to Finland’, accessed 11/03/25, Terveydenhuoltoalan webpage ‘Amount of allowance’, accessed 11/03/25 and TYJ webpage ‘Terms and duration’, accessed 11/03/25

131 Kela webpage ‘Sickness allowance’, accessed 11/03/25

132 Kela webpage ‘How daily allowances are calculated’, accessed 11/03/25

133 European Commission (2024) Finland: Early childhood education and care

134 Kela webpage ‘History of the maternity grant’, accessed 11/03/25 and Ministry of Social Affairs and Health (2013) Child and family policy in Finland

135 Kela webpage ‘Child home care allowance’, accessed 11/03/25

136 Ministry of Social Affairs and Health (2013) Child and family policy in Finland

137 Kautto, M. (2010) The Nordic Countries, The Oxford Handbook of the Welfare State

138 Mikkonen (2013) The politics of poverty in Finland, Social Alternatives Vol 32(1)

139 Eurostat (2025) at-risk-of-poverty rate for children aged less than 18 years, using 60% of median equivalised income before (ilc_li09) and after social transfers threshold (ilc_li02), 2024 figures used for Finland.

140 The before-transfers rate of child poverty for the UK is 41.1% compared to 23.5% after-transfers. Both countries' transfers achieve a similar percentage point reduction in child poverty after-transfers (18 and 17.6 percentage points in Finland and the UK respectively).

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