KELA informs – Changes to student benefits in 2024
This details the changes that Parliament has approved during its autumn session. A number of further changes have been planned for 2024, but they will not be submitted to parliamentary review until spring 2024. They include the abolishment of the adult education allowance in August.
Changes to student financial aid and new due dates for the healthcare fee
The government guarantees for student loans will go up. Students aged 18 or over who are in higher education or at the upper secondary level can take out up to EUR 850 per month in student loan funds. For upper secondary level students under 18, the maximum student loan amount is EUR 400 per month.
Study grants will not be index adjusted; i.e., their rates will remain the same. For example, an 18-year-old student living alone will qualify for a study grant of EUR 279.38 per month.
However, the provider supplement to the study grant will go up by EUR 30. A EUR 10 increase was applied to the provider supplements throughout 2023, so the effective increase in 2024 will be EUR 20. The new monthly amount of the provider supplement will be EUR 141.63.
More information is found in this press release.
The due dates for the healthcare fee for higher education students will change. The due date for the spring term is 15 March for students who register as attending by 31 January. The new due date for the autumn term will be 15 November, applicable to students who register as attending by 30 September. The healthcare fee will remain the same as in 2023, i.e. EUR 36.80 per term.
General housing allowance reduced
A number of changes will be made to the general housing allowance, which will reduce its amount in 2024. Most of the changes will come into effect on 1 April 2024.
The basic deductible for the general housing allowance will be increased from 42% to 50%. It will be equal to 50% of income exceeding the minimum income limit for the allowance.
The compensation percentage of the general housing allowance is reduced from the current 80% to 70% of the difference between the acceptable housing costs and the basic deductible. After this change, the housing allowance will cover a smaller portion of a household’s housing costs.
The EUR 300 deduction under the general housing allowance scheme for earned income will no longer be available. The abolishment of the earned income deduction will reduce the housing allowance of households whose members have wage or salary income, self-employment income or farm income.
The maximum housing costs taken into account in Helsinki will be reduced. The municipality categories 1 and 2 for determining the maximum housing costs will be merged, with the result that the maximum housing costs will be determined according to the current municipality category 2. Previously, the only municipality in category 1 was Helsinki, which will now join the rest of the Greater Helsinki area municipalities in category 2.
The changes will affect housing allowance reviews and awards starting from 1 April 2024.
More information is found in this press release.
Increases to heating costs covered by the general housing allowance will expire at the end of 2023
Due to inflation and higher electricity costs, additional increases were introduced at the beginning of 2023 to general housing allowances. These increases will expire at the end of 2023. The increases affect the amount of recognised heating costs under the general housing allowance scheme. They will expire on 31 December 2023.
In 2024, an amount of EUR 46 per month can be taken into account as separate heating costs for the general housing allowance in a single-person household (compared with EUR 66 per month in 2023).
If the household includes more than one person, EUR 16 per month is added for each additional person (compared with EUR 22 per month in 2023).
The recognised maintenance costs for single-family homes will also change in 2024. For example, in 2023, the amount of maintenance costs taken into account for the general housing allowance for a one-person household will be EUR 107 per month (compared with EUR 155 per month in 2023).
General housing allowance will no longer be available for owner-occupied homes in 2025
Starting 1 January 2025, general housing allowance will no longer available for housing costs in an owner-occupied home. December 2024 will be the last month for which general housing allowance is available for owner-occupied homes.
The change does not apply to right-of-occupancy or part-ownership homes. However, in the case of right-of-occupancy homes, interest payments on housing loans will no longer be recognised as housing costs. The change will take effect on 1 January 2025.