Fewer Estonians on subsistence benefits, but costs keep rising
Fewer people are applying for Estonia's subsistence benefits this year, but the rising cost of living and a higher income threshold are keeping spending on the aid high.
The Ministry of Regional Affairs and Agriculture plans to provide 46 local governments with an additional €1.1 million to cover benefit payments through the end of the year.
Local governments spent €20.6 million on subsistence benefits in the first seven months of 2026, down 1 percent from the same period last year. Applications fell 7 percent in July, but the average monthly cost per application rose 6 percent.
Andrus Jõgi, an adviser at the ministry's Local Government Policy Department, said the increase reflects both inflation and the higher subsistence threshold introduced this year.
"On one hand, costs have risen because of inflation, such as heating and electricity costs," he said. "On the other hand, the subsistence threshold has also increased."
The additional funding will vary widely, from an extra €1,000 for some municipalities to €115,000 for the largest recipient. Smaller local governments generally need more help because even a small change in the number of applicants can significantly affect their budgets.
Kati Nõlvak, head of economic well-being policy at the Ministry of Social Affairs, said the subsistence threshold is also set to rise in line with the consumer price index (CPI) next year, under an agreement reached last year.
"Last year it was agreed that that figure should be €231 [a month] per adult and €277 per child," she added.
The 2026 state budget allocated €42.5 million to reimburse local governments for subsistence benefits, up from €36.7 million last year.
Next year's planned allocation is €36.5 million, but Nõlvak said the lower figure does not necessarily signal a major drop in spending. Not all of this year's allocation is expected to be used.
"You have to look at what's behind the numbers," she explained, noting that several legislative changes taking effect this year had prompted the ministry to budget a higher amount for the benefit.
"Even this year, we won't be spending all of the more than €40 million that was allocated," she added.
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Editor: Aili Vahtla
