on 1 October, subsidies for the new heating season will start to be allocated and will be valid until 30 April. The calculation is based on the duration of the heating season – from 16 October to 15 April. Read the article by Komersant Ukrainskyi
to find out what changes are expected, whether the subsidy will be re-assigned automatically and who can receive it in 2024.
Who needs to reapply for subsidies
If a subsidy has already been received, it will be automatically reassigned in the following seasons, except for certain categories that must reapply.
Every year, those who receive subsidies for liquefied gas, solid or liquid heating oil must apply in person. Also, payments will not be automatically extended to families with no income or with an income below the minimum wage of UAH 8,000. Exceptions apply to students, registered unemployed, pensioners and other socially vulnerable groups.
Subsidies are also automatically reassigned if the unified social tax paid for a person is not lower than the minimum amount during the quarter, i.e. UAH 5,280. The subsidies are also available to internally displaced persons and those who rent housing.
There are three ways to apply for a subsidy
Inperson – at the territorial service centre of the Pension Fund, the executive committee of the local council or the ASC.
Bypost – by sending a letter with documents to the Pension Fund authority. The application form and declaration can be found in the annexes to Resolution No. 848.
Online – through the PFU e-services portal (qualified electronic signature required) or on the Diia portal/application in the Services section, selecting “Application for subsidy”.
To apply for a subsidy, you need to fill out two main documents: an application and a declaration of income and expenses for two quarters. If the subsidy is accrued before the start of the heating season, the data for the first and second quarters are taken into account. During the season – for the last two quarters before the month of application. If you need a subsidy for liquefied gas or heating oil, you need data for the previous calendar year.
In addition to the basic documents, additional documents may be required: a certificate of IDP registration, a lease agreement, certificates of residence without a residence permit, income information, and a document confirming the use of liquid or solid fuel. It should be noted that the list of documents is not exhaustive.
Who is eligible for a subsidy:
- anyone registered in the dwelling;
- a tenant of a dwelling;
- an internally displaced person who actually lives in an apartment or house;
- a guardian or trustee of a minor or incapacitated person;
- an individual developer of housing that has already been put into operation, but for which utility bills are already being charged.
Why you may be denied a subsidy
Housing area. The subsidy is not intended for apartments over 130 sq m and houses over 230 sq m, except for family-type children’s homes, foster families and large families. If there are two or more separate accounts for housing that meet the floor space requirements, no one can be denied.
Availability of a vehicle. Owning a car manufactured less than five years ago (except for mopeds and trailers) or more than one car manufactured less than 15 years ago will result in the loss of the subsidy. However, cars that were manufactured independently or purchased on favourable terms are not an obstacle to receiving a subsidy if the owners are single parents, parents with many children or families with persons with disabilities.
Income or lack thereof. If the cost of housing and communal services is less than 15% of the average monthly income per person in the family, no subsidy is provided. Also, adult family members with no income or less than the minimum income (UAH 8,000 per month) are not eligible for a subsidy. Exceptions apply to students, the registered unemployed, pensioners, those receiving birth benefits or persons with disabilities. The subsidy is possible if the minimum unified social contribution (UAH 1760 per month) is paid for an adult with an income below the minimum.
Staying abroad. If an adult family member stays abroad for more than 60 days, this becomes an obstacle to receiving the subsidy. However, the days spent abroad during martial law and two months after its end are not taken into account.
A one-time expenditure of more than UAH 50,000 during the year before the subsidy is granted or reassigned may be grounds for refusal. This applies to purchases of land, housing, real estate, construction materials, or payment for services other than educational and medical services. However, if a new home was purchased after the sale of the only one owned within six months, the subsidy cannot be cancelled.
Debts. If you have utility bills for three months or more in excess of UAH 680 (40 tax-free minimums), you must either pay off the debt or arrange a restructuring. In addition, if household members have alimony arrears of more than three months and the debtor is included in the Unified Register of Debtors, the subsidy is not granted. However, if the debt is paid by court order or the debtor is declared missing, the subsidy will be granted.
Excessive payments. If the subsidy was previously provided in a larger amount than required and the recipient has not returned the overpayment, it will not be prolonged or granted.
Ownership of multiple properties. If one of the family members owns more than one property, the subsidy may not be granted. At the same time, dormitory accommodation is not taken into account, as well as inherited housing that is not rented out, or property received by an orphan or child deprived of parental care.
Having significant deposits or purchases of foreign currency may be grounds for refusal to grant a subsidy. If any household member has a deposit or domestic government bonds worth more than UAH 100,000, or has purchased foreign currency or precious metals worth a total of UAH 50,000 during the year, the subsidy will not be granted or cancelled.
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What is not an obstacle to receiving subsidies
Housing in the occupied territories and on the contact line.
Joint ownership, if the property is owned on the basis of joint or partial ownership.
Rural areas. Housing located in rural areas does not prevent you from receiving a subsidy.
Destroyed or uninhabitable housing that has become uninhabitable due to the war.
Where to check the subsidy allocation
There are two main ways to check whether you have been granted a subsidy. Firstly, you can apply in person to the territorial office of the Pension Fund, as it is now responsible for these payments. Secondly, online information can be found on the Pension Fund’s e-services web portal. To do this, you need to open a personal account using a qualified electronic signature, which can be obtained from Diia or Privat24. Information about subsidies can be found in the section “My messages”, in the tab “Individual messages”.
As for the services, standards and amount of the subsidy, they depend on various factors, such as family composition, income and utility costs. The subsidy is calculated individually and can cover the costs of heating, gas, electricity and other utilities.
The subsidy is provided to cover the following types of housing and communal services:
- Management of an apartment building.
- Supply and distribution of gas and electricity.
- Supply of heat and hot water.
- Centralised water supply and sewerage.
- Subscriber service costs, liquefied gas and solid or liquid heating oil.
The standards that determine the limits of the subsidy are set out in Government Resolution No. 409
Electricity: Depending on the conditions, consumption varies from 70 to 250 kWh per month; for residents of Kharkiv region, higher social norms are currently in place.
Gas: 3.3-10.5 cubic metres per person per month, depending on the availability of hot water.
Heating: 0.0383 Gcal per 1 sq. m or 4 cubic metres of gas per square metre.
Cold water: 2-3.6 cubic metres per person per month.
Hot water: 1.6 cubic metres per person per month.
Centralised water disposal: 3.6 cubic metres per person per month.
Subsidies for the management of an apartment building and other services are allocated within the social housing standard: 13.65 sq m per person plus 35.22 sq m per household.
How the subsidy amount is determined
The amount of the subsidy is determined as the difference between the utility bill within the standards and the mandatory payment of the household, which is calculated according to a certain formula.
The mandatory payment is determined by multiplying two indicators:
The average monthly income of all household members for two quarters divided by the number of months in a quarter (6 months). The income is calculated in UAH.
Share of payment for services, or the mandatory percentage of payment for housing and communal services. It is calculated by dividing the family income ratio by the basic income ratio and multiplying by 15%.
The household income coefficient is the ratio of the average monthly income per family member to the subsistence level as of 1 January of the year (UAH 2,920).
The basic income coefficient is 2 subsistence minimums.
Thus, the share of the payment is determined as a percentage. Since utility costs vary, each subsidy recipient pays an individual mandatory payment that depends on their income and the number of family members, so the amount of the subsidy can vary significantly.
During the subsidy period, the subsidy may be automatically recalculated without the need to apply if there are changes in the following aspects
- prices and tariffs for housing and communal services;
- the amount of the mandatory contribution;
- housing and communal services providers, or if they do not provide services for more than 30 days;
- housing or social standards;
- income of household members, if the Pension Fund receives updated information.
Author: Alyona Kaplina