Published 3 May 2018. Some rules have changed since; ask us for the current position.
The Government of Ukraine has announced changes to how utility bill subsidies are granted.
The Government adopted several amendments to the rules for compensating low-income households for utility bills. It presented them as a major step towards replacing in-kind assistance with cash payments, in other words full monetisation.
Under the Government's decision, housing subsidies (житлові субсидії) will be paid in cash. Recipients who save money by using utilities sensibly and carefully will be able to spend the savings on anything they need.
Monetisation of benefits has already proved its worth in the programme of direct targeted support for low-income households, but the programme still needs changes to close the gaps and fix the shortcomings that have come to light.
What you need to know
The conditions for granting subsidies have changed for households with rental income from property.
There have been cases where fairly well-off people who own cars and let out flats and houses qualified for a subsidy and claimed it, sometimes effectively passing the subsidy on to their tenants as a kind of bonus.
Following the changes, anyone who owns a car no more than five years old will not be eligible for a housing subsidy.
People who let out property, including flats, will also have to report the rental income in their declaration, in a newly added "new income" box.
How luxury flats and houses affect eligibility
Before the changes, subsidies were also granted to owners of luxury homes far larger than average. Some owners resorted to various tricks, such as registering a single elderly person at the address, who then received compensation for the excess floor space.
The amendments put an end to this. From 1 May this year, owners of flats larger than 120 square metres and houses larger than 200 square metres will not be eligible for a subsidy. Families who have adopted children and family-type children's homes are exempt from this rule.
Undeclared employment
Some people earn income abroad, do not declare it and still apply for subsidies. Under the amended rules, only unemployed people registered with the employment service will be eligible. For people who are not registered, social protection authorities will assume an income of three subsistence minimums, and a commission will decide on the subsidy taking into account the person's living and financial circumstances.
To encourage energy saving, from 1 May this year the rules also set consumption norms for heating: 4.5 cubic metres of gas per square metre of living space, and 30 kilowatt-hours of electricity.
Internally displaced persons will be able to apply for a subsidy without a lease agreement; an application and a completed declaration are enough.
This year the Government has kept the practice of rewarding buildings and households that save resources over the year, on the same terms as last year.
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