How is housing allowance changing April 2024? Read these frequently asked questions to find out.
How is the general housing allowance changing and when?
Cuts to the general housing allowance came into effect from the start of April 2024. The changes apply to everyone eligible for general housing allowance, including students. They do not, however, apply to pensioners.
If you started receiving general housing allowance on or before 1 April 2024, your allowance will be reduced immediately. However, if you began receiving the allowance before this date, it will remain unchanged until your household applies for a review. A review is required if there are changes in your circumstances, such as moving to a new house, changes in household composition, or income alterations.
Find out more about changes to the general housing allowance on the Kela website.
How much will my general housing allowance be reduced?
You can estimate the amount with Kela's calculator for general housing allowance.
I will have less money to spend. How can I reduce my housing expenses?
Saving tip #1: save on space, not on comfort
If you're looking to cut down on housing costs in the long run, consider moving to a more affordable apartment. Though this often means downsizing, you can opt for a place where your living area extends into the communal spaces of the building. This can make even the most compact home feel more spacious. With a shared sauna and a gym for everyone in the building, there's no need to cram everything into your own living space. You might even find communal areas for working or studying, meaning you won't need a home office.
Your living room could also include the local café, the library around the corner, or the walking trails in the nearby woods. Where do you enjoy hanging out the most?
Moving to a smaller home often means having to cut down on the amount of stuff you own. But parting with things can be surprisingly liberating when you discover you can get by with less. You don't have to own everything: for instance, you can borrow tools from a neighbour. It's also a good idea to check out the lending services in local libraries and other organisations. Plus, selling items you no longer need can be a great way to make some extra cash.
Saving tip #2: curb your travel expenses
You can make considerable savings on travel expenses by choosing an apartment within walking or cycling distance of your school, job, and the grocery store. If you live in the Greater Helsinki area and need a lot of public transport, keep in mind that the travel zones have a direct impact on the ticket prices.
If you drive infrequently, you could even give up your own car and book a shared car from your apartment complex instead.
Saving tip #3: cut back on electricity and water
When you compare the prices of different rental apartments, remember to check whether the rent includes electricity, water, or internet access. Once you add these up, you'll see which one really works out the cheapest.
If your water bills are based on consumption, it's easy to save money by using less water. See our tips to find out how.
If you pay for your electricity yourself, compare the prices of fixed-price and dynamic pricing. And finally, read our useful tips for saving both energy and money.
