The students of the future will live on basic income

If we want the Student Union to have an actual impact on things, it must be present in the places where the social debate takes place. This can be done at SuomiAreena, a week-long event in Pori that brings together Finnish decision-makers, the media and those interested in politics. Two members of the AYY Board and two AYY employees will take part in the event.

The cross-party panel Social Security of Tomorrow – New, Old or Recycled? took an in-depth look into the problems of the social security system. However, the role of students in the possible reforms was neglected almost entirely. This question is of the utmost importance, however.

In addition to their studies, students are expected to work in their own field, establish startup companies and acquire social skills through volunteering. At present, the study grant alone is not enough for studying, but it is also difficult to make work and the students’ low income limits match. The general housing allowance, on the other hand, is dependent on the possible spouse’s income (or in the worst case scenario, the income of one’s roommate, who is considered as a spouse), which in practice creates a maintenance liability, which is poorly suited to the values of the 2010s. This is a difficult equation.

On top of this, the Finnish higher education system does not recognize part-time studying. 86 percent of higher education students consider themselves to be full-time students, whereas 14 percent consider themselves to be part-time students. We are not talking about students working as a cashier at the local store: 53 percent of students say that their work is related closely or quite closely to the content of their own degree programs.

One solution to the above-mentioned challenges would be a step-by-step transition to a basic income system.

AYY supports gratuitous basic income, which would also include means-tested parts. Even when implemented in a cost-neutral way, basic income would reduce bureaucracy and preserve the basic function of social security as a safety net. As a first step in the transition to the basic income model, social security should be made individual-based: housing allowance, social assistance and labor market subsidy should be personal and independent of the possible spouse’s income.

It is up to the new Government to overhaul the income system, and the perspective of the students must also be taken into account. It is not just about how many euros everyone will get. It is about whether Finland can bring up people that lead the economy and change the world also in the future. We can achieve this by improving student well-being.

Try out the Student Simulator and see what kind of challenges related to income students have to face.

Lauri Seppäläinen
Member of the Board

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