Backlash to Finland's fight against homelessness

Finnland faces a setback in its long-standing battle against homelessness, according to recent reports. The country, once regarded as a model for tackling the issue, now sees a rise in the number of homeless individuals. This shift has been attributed to the conservative government’s decision to cut social benefits and reduce investment in social housing projects. The situation is illustrated through the story of Velho Senkel, a 67-year-old man who has lived in his small two-room apartment since several years ago. His life took a turn for the worse after his wife passed away, leading to job loss and financial instability. With no means to pay rent, he was eventually evicted and spent ten days on the streets before receiving assistance. Now residing in a housing complex with 76 units, he lives under the care of social workers who assist him with applications and bureaucratic procedures. The approach known as “Housing First” has played a crucial role in Finland's previous success in reducing homelessness. This principle prioritizes providing stable housing as the immediate solution for individuals facing homelessness or at risk of becoming so. It contrasts with earlier practices that focused on treating mental health issues or substance abuse before addressing housing needs. Since 2008, Finland has consistently applied this strategy, aiming to replace temporary shelters with permanent housing. The results were notable: between 2012 and 2023, the number of homeless individuals dropped from approximately 8,000 to around 3,400. However, recent developments suggest that this progress is beginning to reverse. Juha Kahila, representing the homelessness aid organization Y-Säätiö, points to the current government's actions as a contributing factor. The administration has significantly reduced social welfare payments, a move described as drastic since the 1990s. Funding for key support organizations has also been cut, exacerbating the challenges faced by vulnerable populations. The government justifies these cuts by citing the need to save money amid economic stagnation. Trade with Russia, a major neighbor, has nearly ceased, leading to one of Europe’s highest unemployment rates. As a result, the effects of budget reductions are becoming increasingly visible. Marko Lahtela, head of a housing facility in Helsinki, notes that more people are turning to food distribution centers, which have become scarcer. He emphasizes that the reduction in social aid forces individuals to rely more heavily on such services, moving Finland further away from its goal of eliminating homelessness by 2027. While Velho Senkel acknowledges the importance of the support he receives, he expresses concern over the broader implications. He credits the Housing First model with helping him regain stability but stresses that even successful strategies require sustained funding, especially during economic downturns. Finland’s experience underscores that while innovative approaches can make a difference, they must be supported by consistent financial commitment to achieve lasting change.