The reform of social welfare services will transform employment support – What will happen to the most vulnerable?

The reform of social welfare legislation will bring significant changes both to service structures and to practical social work. The discontinuation of rehabilitative work activities and the introduction of a new service supporting working-age people’s functional capacity and inclusion into the Social Welfare Act will change the legal nature of services and the division of responsibilities between authorities.

The objectives of the reform are clear: to enable social welfare services to focus on their core functions, clarify responsibilities, increase service flexibility, and achieve cost savings. The reform affects approximately 35,000 clients and multiple public authorities.

Simultaneous reforms risk further weakening the position of unemployed people

The reform is not taking place in isolation. In spring 2026, social security reforms will tighten conditions particularly through changes to social assistance, stricter unemployment benefit sanctions, and the introduction of a new general benefit scheme. For unemployed people, these changes collectively mean increased conditionality. Stricter obligations and sanctions linked to social assistance increase pressure to seek and accept work or participate in employment-promoting measures. The overall employment situation further complicates matters considerably.

The combined effects of these reforms will hit low-income working-age people the hardest: cuts will increase poverty risks, and there is a danger that especially people outside employment will experience a significant deterioration in their situation.

Changes in the legal nature of services

A new service called support for working-age people’s functional capacity and inclusion has been proposed to replace previous social welfare services promoting employment. The new service would depend on available funding, meaning that authorities would no longer be obligated to provide the service equally to everyone in the same way as the current rehabilitative work activities. This may result in reduced service provision when wellbeing services counties face financial constraints.

The new service would no longer be a mandatory service tied to eligibility conditions for unemployment benefits. Voluntary participation may strengthen clients’ right to self-determination. However, there is also a risk that some clients may remain outside services either by choice or because of unclear guidance.

The possible discontinuation of rehabilitative work activities will also affect NGOs and third-sector organizations that have provided services through outsourced contracts. There is a risk that service provision may cease altogether. If expertise disappears from the market before the new service becomes established, a gap may emerge that cannot quickly be filled.

Preconditions for a successful reform

The success of the reform requires active and strong national support for implementation, guidance, and training.

Clear guidelines are needed regarding the division of responsibilities between social welfare services and employment authorities. Training is also necessary on the objectives, target groups, and content-related boundaries of the new service, as well as consistent policies for client situations during the transition phase. Without a shared understanding of the purpose of the legislation, practices may diverge between regions.

The effectiveness and implementation of services must also be systematically monitored. Monitoring should measure changes in work ability and functional capacity, experiences of social inclusion, and continuity of service pathways. Employment outcomes alone do not indicate success.

Client understanding is the key

There remains a need to develop rehabilitative, work-oriented services for people who have been unemployed for a long time and for people with partial work ability. Although the current rehabilitative work activity system has included many shortcomings, dismantling it without adequate replacement services may place many people in unreasonable situations. Falling through the cracks or being left without a pathway forward may weaken both life circumstances and work ability.

In the Laatua työkyvyn ja työllistymisen tukeen (“Quality Support for Work Ability and Employment”) project in the Wellbeing Services County of Pirkanmaa, professionals work with clients who would not progress toward employment without the support of social welfare professionals. Experiences from the project demonstrate that clients require intensive, close, and supportive guidance to advance their rehabilitation.

Such an approach requires professionals to commit to building relationships, while also demonstrating flexibility and persistence. However, the highly positive feedback from clients shows that this model helps clients move forward and empowers them.

When reforming social welfare services, it is essential to ensure that client understanding forms the basis of service delivery and that resources are directed toward working methods shown by research and practical experience to be the most effective. Effective methods benefit clients through improved quality of life, enhanced functional and work ability, and stronger experiences of social inclusion. Intensive support models that operate within networks and clients’ everyday environments, utilize multidisciplinary expertise, and provide close ongoing support are examples of high-quality social welfare practice.