Current mechanisms of social assistance for low-income families in Ukraine. Recommendations on improvement of the system of social assistance for consumers of housing and communal services

A system of cross-subsidization is in place, where higher tariffs are charged to other categories of consumers to support low-income households. Additionally, a system of benefits is granted for payment of housing and communal services to certain categories of consumers, including children of war and veterans of war. These benefits are delivered to over 22% of Ukraine's population, with children of war and veterans of war being the largest categories of recipients. However, the current system of benefits is of low targeting accuracy, with 90.2% of recipients being wealthy individuals based on a living wage criteria. Benefits do not provide adequate protection for low-income households, with only 46% to 54% of households receiving benefits for reimbursement of their expenditures for housing and communal services. The benefits are also not linked to the poverty rate of potential recipients, which further exacerbates the issue. The system of benefits granted for payment of housing and communal services is governed by 58 laws and 120 other regulations. There are approximately 140 kinds of benefits, compensations, and guarantees in Ukraine. The most common benefits are those granted for payment of housing and communal services, a payment for the use of fuel, and reimbursement of urban transportation costs. The program of housing subsidies ensures targeted housing assistance delivered for partial reimbursement of costs of housing and communal services, liquefied gas, and solid fuel to households with low incomes. However, even with small increases in prices for energy carriers in Ukraine, low-income households practically do not "feel" increased bills for consumed services due to the program of subsidies. The number of recipients of subsidies has been steadily decreasing over the years, from 7,312,620 in 1997 to 1,424,592 in 2008. The cost of subsidies delivered to the population has also decreased, from 1,356,557,100 UAH in 1997 to 715,224,600 UAH in 2008. The average monthly income of households - recipients of subsidies - per person has also been decreasing, from 1,400 UAH in 2000 to 1,200 UAH in 2009. The distribution of recipients of subsidies among different social groups is also noteworthy. In Vinnytsia, for example, 46.2% of all households are recipients of subsidies, while in Ivano-Frankivsk, 46.4% of households are recipients of subsidies. The average monthly income of households - recipients of subsidies - per person varies significantly across different regions, ranging from 1,200 UAH in Vinnytsia to 1,800 UAH in Korosten.