Estonia to switch to need-based social benefits in 2028

TALLINN - Kristina Kallas, minister of education research and chair of the Estonia 200 party, announced on Tuesday that an agreement has been reached in the government that from 2028, social benefits will become need-based in Estonia. 

"A personalized and effective state has been a priority and the backbone of the policies of Estonia 200 from the start. An effective state is sustainable in the long term, less burdensome for taxpayers and businesses. Distributing subsidies to everyone in the same amounts is beyond the capacity of the state and taxpayers today and is in fact not necessary. Public finances are in a difficult situation, which makes it all the more necessary to critically assess which part of society actually needs social benefits," Kallas said.

"At present, we have to cut funding for extracurricular education. However, switching to need-based support would allow us to direct that money specifically into extracurricular education or other services aimed at children and families. Therefore, instead of blanket payouts, we could invest in a better future for children and families," she added.

She noted that technology is developing at a rapid pace, and this gives us the opportunity to use citizen data more precisely and offer personalized services.

"In the digital age, it is possible for the state to be there and supportive to citizens quickly and on a needs basis, without having to spend a lot of money and without having to build a large state apparatus for this. Retailers make us personalized offers based on our consumption history. If businesses can provide a personalized service, why shouldn't the state?" the party leader asked.