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Executive summary: Since 2022 in Ukraine, the indexation (adjustment) of subsidies for housing and communal services has been carried out mostly automatically – after each tariff change or a substantial change in a household’s income the Pension Fund of Ukraine recalculates the amount of support. There were no changes to the basic eligibility criteria for subsidies during the war (they were taken from the rules in force before 2022), but the application procedure has been significantly simplified: subsidies are automatically renewed for the new season, there is no need to re-submit an application, and the administrator became the Pension Fund. In recent years the government updated a number of regulations – introduced targeted support for internally displaced persons (rental subsidy under the new procedure), and refined income calculations for special categories (including prisoners and residents of occupied territories). The state budget for 2023–2026 envisaged roughly 37–49 billion UAH for subsidies (with a projected ~2.4–2.8 million recipients). The nearest prospect is a pension indexation in 2026 – this may cause some pensioners to lose subsidies (when household income rises, the need for assistance decreases). Practical recommendations: regularly update household income through Diia/PFU, monitor housing area savings to 48.87 m² per person, and for the government – maintain targeting and account for inflation when budgeting.

Overview of the current state of subsidy indexation

Subsidy indexation is not regulated by a separate law: it is rather a set of actions under the current Procedure for granting subsidies (approved by CMU Resolution No. 848/95 and supplemented with subsequent amendments) and by budgetary rules. According to press releases from the Ministry of Social Policy, the criteria (income, assets, area norm) have remained stable, but from 2023 the administrator of subsidies became the Pension Fund. Numerous government documents and statements emphasize automatic recalculation. For example, the deputy minister of social policy reported that after tariff increases the Pension Fund automatically adjusts the subsidy amount (so that a family does not pay more). Similarly, the Ministry’s press release states that when prices or tariffs change, there is no need to reapply – the recalculation is done without an application.

The table of eligibility criteria (“who is entitled”) has been somewhat expanded. Since spring 2025, rental subsidies for internally displaced persons have been introduced (CMU Resolution No. 1225 of 25.10.2024). In April 2023, Resolution No. 340 clarified that incomes of persons in captivity or abroad are not counted when assigning subsidies, and families without centralized heating may use the social electricity norm. Thus, the current state is automated recalculations following tariff and income changes, while income criteria and area limits remain in force (48.87 m² per person).

Chronology of changes 2022–2026

Mechanism of subsidy indexation

• Criteria and formula: a subsidy is calculated as the difference between actual utility costs and the household’s mandatory payment (15% of the household’s aggregate monthly income). Under the new rules, aggregate income includes salaries, pensions, benefits and other income for the previous six months; incomes of prisoners/kidnapped persons are not counted. There is no publicly available precise “indexation formula” – calculations are carried out by the PFU’s internal automated program.
• Frequency: benefits are assigned for the heating (October–April) and non-heating (May–September) seasons. Recalculations (without a new application) are carried out twice a year – in March and August – based on the household’s new income data. In addition, after any significant tariff increase for gas, heat or water, PFU automatically adjusts the subsidy amount again.
• Social norms: standard consumption norms are used when calculating a subsidy (housing area up to 48.87 m² per person, prepaid gas limits, etc.). In “war” zones where centralized heat or gas is absent, a social norm for electricity used for heating is applied (switch from gas to electric heating).
• Financing: subsidy amounts are allocated annually from the state budget – in recent years this has been about 40–50 billion UAH per year. Recalculation and payments are carried out by the Pension Fund using state funds.

Statistics of recipients and payments

According to government sources and agencies, the number of beneficiary households and subsidy expenditures changed as follows: in 2023 approximately 2.4 million families received subsidies (37.9 billion UAH was allocated in the state budget). In 2024–2025 the number was expected to grow to ~2.8 million with funding around 49.9–47.4 billion UAH. For example, in the 2024–2025 heating season subsidies were used by ~1.6 million households (over 12.5 billion UAH were paid in total). In the 2026 draft state budget about 42.3 billion UAH is earmarked for subsidies (enough for ~2.7 million families).

According to official Ministry of Social Policy data, the average subsidy amount at the beginning of 2023 was about 1,700–1,800 UAH per month. Exact figures for 2024–2026 are not yet available, but taking into account inflation and rising tariffs the assistance amount increases (the 2024 budget provided about 25% more funds compared to 2023). The approximate dynamics of the average payment are shown below:

 Based on government estimates: numbers and subsidy budgets.

Trend chart of average subsidy size 2022–2026 (approximate):

2022 | ██████████████████████████ 1500 UAH
2023 | ██████████████████████████████████ 1800 UAH
2024 | █████████████████████████████████████████ 2200 UAH
2025 | █████████████████████████████████████████████████ 2600 UAH
2026 | █████████████████████████████████████████████████████ 3000 UAH

Consequences for households and recommendations

• For households: monitor your incomes and household composition via the PFU/Diia personal accounts (they automatically pull data), so that changes result in a correct subsidy recalculation. If work, benefits or household members change, update the information – PFU will adjust payments without losing assistance. Pensioners should remember: after the planned pension indexation in 2026 some subsidy recipients may lose eligibility (increased income reduces need). Such families should economize on utilities or officially report income changes to avoid an immediate full loss of payments.
• For the Pension Fund and government: continue the practice of automatic recalculations (as done when tariffs change). It is recommended to ensure monthly verification of recipients, stop payments abroad or to occupied territories (this is also foreseen by the plan to improve the subsidy system). It is advisable to develop digital services: citizens are already invited to apply for subsidies through an automated system, but this transparency should be maintained.
• For policymakers: ensure indexation of minimum social standards (subsistence minimum), which directly affects subsidy calculations. Budget provisions should include funds for adjusting assistance for inflation and tariff spikes (to avoid underfunding after price increases). Also publish calculation mechanisms (formulas, coefficients) to reduce uncertainty. At the policy level it is important to emphasize targeting: according to the Prime Minister, those in need will be fully supported.