All about grants: how to use and who will take a discount in 2017

In Ukraine, this heating season will receive a grant of seven million families – nearly half of Ukrainians. As a result of gradual increase of tariffs for communal the state every year spends on subsidies more and more. While experts and officials have noted that the payment system must be reformed to tighten control and to change the procedure of payment. In the future, the subsidies Ukrainians will be able to earn, however, and now the amount of the payment can be significantly reduced. In 2017, after the revision and minimal salary standards, will have to pay more. The website “Segodnia” found that waiting for subsidianes and how to pay for the communal less.

How does the subsidy: how much to pay and why the amounts are different

In the budget for 2017 for grants pledged a record sum of 51 billion hryvnia. However, the number of Ukrainians who received subsidies increased in 21 times. In 2014 a grant has issued 450 thousand people, and in 2017, according to estimates of the Cabinet, “a discount on a communal flat” will receive 9 million households (two million people will issue a grant in 2017). While the country was 15 million households, nearly 60% of Ukrainians pay utility bills through the state.

The subsidy is assigned to a social norm of consumption and depends on only two factors: family income and number of people. On the basis of income, the social security authorities expect an obligatory payment (the amount you need to pay for the communal, and the rest will cover the state), and the number of people depends on the rate of consumption.

Photo: archive

For example, a family of three that lives in the house of 73 square meters and heats it up using gas, according to the standard, should spend: 150 kWh of light, 13.2 cubic meter of gas for cooking and 401 cubic meter for heating, 7.2 per cubic meter of cold water and 4.8 cubic meter of hot. It is this scope of services and receive the subsidy. If you spend more – for the rest will have to pay full price.

If total family income is 6 thousand UAH, the amount of the required payment amount to 582 of the hryvnia. The subsidy is stable, while the amount of the required payment may be reduced. If instead of 400 cubic meters of gas, which are calculated on the grant, spend 150, the money allocated to pay another 250 cubic meters will go to the next month. The savings may not “cover” a compulsory payment, noted in the Ministry.

What will change in 2017: monetization and the new rules

In 2017, according to a source “Segodnya” in the Cabinet, the standards of consumption of plan to reduce. First and foremost we are talking about gas consumption. Presumably, instead of 5.5 cubic meters of gas for heating one square meter of housing plan to allocate 4 cubic meter. The new rules can enter into force in may 2017. Thus, the government will allocate a subsidy for the smaller volume of gas. Ukrainians will have to reduce their consumption, or for “extra” to pay for the full cost.

Zamglavy, Department of “Naftogaza” Alex, Habacuc sure the standards too high. According to the calculations of “Naftogaz”, the real Ukrainians use 4 cubic meters. Note, for several years in Ukraine the rate of gas consumption was reduced twice – from 11 to 5.5 cubic meters per square meter. Earlier in the apartment of 30 square meters subsidy “covers” 330 cubic meters of gas, after declining standards – only 165 cubic meters.

However, the main innovation, which is scheduled for 2017 – the monetization of subsidies. “The monetization of subsidies discussed in the Cabinet. The Prime Minister, the World Bank and the working group of the Cabinet. The government thinks about it. Finally the realization that monetization is necessary, there”, – said the representative of the Ministry of Finance, the head of the office of reforms Yana Bugrimova.

“The monetization of subsidies discussed in the Cabinet. The Prime Minister, the World Bank and the working group of the Cabinet. The government thinks about it,” says Jan Bogrim.

The Cabinet believe that if the money for grants to give to Ukrainians “on hand”, will be an incentive for savings – the less spent on bills, the more money is left. If now the “saved” funds be transferred to the following month, coming in 2017, the money can give “hands on”. Now the government is considering two main monetization models. The first is to pay money Teplokommunenergo (CTV), which will offset the subsidies, the second is to transfer the money allocated for subsidies directly to consumers. The second model also has several variants. On the card can list all the money, and the Ukrainians will be able to spend them at its discretion, or the card will list only the savings, if the grantee used the resources provided by a social norm.

“In my personal opinion, I would go step by step, because this change carries risks. We don’t know how people will behave if we, the card will give all the money, and no usage restrictions. I’m not sure in this case does not fall payment discipline. The ultimate goal is to give money to people. Must be prepared by the technical solution: what card and on what basis. Perhaps you need to start with the monetization of residues, then we avoid the risks of non-payment. Then you need to go full monetization,” says Yana Bugrimova.

Experts also agree that you need to implement a system of verification of recipients of social benefits, to look for not only “dead souls” and those who made a purchase in the amount of 50 thousand UAH, but those who hide their real income. “Not doing this, go to monetization is a multiplication problem. The motivation for fraud will increase,” – said the representative of “Naftogaza” Alex, Habacuc.

This year the savings from the subsidy Ukrainians have taken

August 23 this year, the government adopted resolution No. 534, which States that the money saved will not go in payment for heat this winter, and will be returned to the state. It concerns not only gas, but electricity and heat generation (if the room is not heated by gas and has an electric boiler or Central heating).

Photo: archive

A few months ago, the government said the money allocated for the subsidy to return to the state is not necessary. “If people didn’t use all the normal resources on the family savings subsidies remain in the accounts of the family and can be used in the coming months, including to repay a mandatory portion of payment”, – said Minister of social policy Andrei Reva in July of this year.

However, as a result, the funds for saved cubic meters of gas and Gcal of heat will return to the state. On accounts of Ukrainians and leave only money to pay for 100 cubic meters of gas, that is, 680 hryvnia.

As a result, those Ukrainians who overpaid for heating or by issuing the subsidy, reduced its consumption – lost some savings. In 2017, the Ukrainians subsidies, who receive minimum wage, have to pay for communal services in two times more than minimum salary from January 1, will increase from 1600 to 3200 hryvnia. This, according to the Ministry of Finance estimates, will save the state $ 5 billion hryvnia.

The subsidy can and does pick up if:

  • within 12 months the purchase was made or paid service in the amount of 50 thousand UAH
  • grantee hides extra income

In the total income when calculating the subsidy also takes into account income from agricultural activities, rental housing, rental income from Bank deposits or securities.

In order to “calculate” unscrupulous grant recipients the Ministry of Finance conducts extensive verification. So, in parallel with the increase in tariffs officials plan to implement a program for energy conservation and to check whether all subsidiary do have the right to assistance from the state.

By the way, Deputy Prime Minister Gennady Zubko said that the subsidy “temporary assistance”. In order to save some “for life”, it is necessary to conduct energy efficiency measures.