There are fewer applications and recipients for subsistence benefits this year. However, more money is being spent because the cost of living has increased. Local governments will receive an additional 1.1 million euros for benefit payments.
This year, 20.6 million euros have been spent on subsistence benefits. This is 1% less than last year. Applications are down by 7%, but each application costs 6% more. The 2026 budget allocates 42.5 million euros for benefits. Last year, it was 36.7 million.
Andrus Jõgi, a ministry advisor, says the money will go to local governments that are short of funds. At the beginning of the year, local governments received 30 million euros. Now additional funds are needed.
Costs have risen, even though there are fewer applicants. Inflation has made heating and electricity more expensive. The subsistence level has also increased. This means benefit costs are rising.
Local governments will receive varying additional amounts. Some will get 1,000 euros, others up to 115,000 euros. Smaller municipalities need more help because each new applicant affects them more.
Kati Nõlvak, the head of the ministry, says the subsistence level will rise in 2027. The adult subsistence level is 231 euros, and for a child, it is 277 euros. Next year, 36.5 million euros will be allocated for benefits. This is less than now, but not all the money will be spent.