Not only pensions and subsidies will increase: what changes can Ukrainians expect in 2024?

Starting from the new year 2024, Ukrainians will face a number of important changes in the social sphere, and not only the indexation of pensions.

RBC-Ukraine writes about this.

Tariffs will remain at the same level, but at the end of the heating season the situation may change. There is currently a moratorium on some housing and communal services tariffs in Ukraine. The government prohibited increasing the cost of heating, hot water and gas services for the duration of martial law and for another six months after its lifting.

Cold water and electricity are not subject to the moratorium, but there are no plans to increase their prices yet.

According to the head of the Cabinet of Ministers Denis Shmygal, all tariffs will remain unchanged until the end of the heating season - at least until April 2024.

Heating and hot water

The cost of centralized heating and hot water services for the population is frozen by a moratorium of the Cabinet of Ministers. In regions, tariffs may differ depending on the heat supply company, but they remain at pre-war levels.

For example, in Kyiv the cost of heating is 1654.41 UAH per 1 Gcal, in Lviv – 1363.44 UAH, in Cherkassy – 1130.21 UAH, in Dnieper – 1741.32 UAH.

For hot water in the capital they pay 97.98 UAH/cubic meter, in Lviv – 95.26 UAH, in Kharkov – 93.22 UAH.

Gas supply and gas distribution

Another housing and communal services service that is subject to the moratorium is the distribution of natural gas. The price was fixed for the period of martial law by the relevant law.

The cost of gas supplies to household consumers who use blue fuel for heating their homes will also remain unchanged.

Clients of NJSC Neftegaz receive gas supply services at a fixed price of 7.96 UAH/cubic meter, which was established as an annual tariff before the start of the war. The company notes that gas prices in Ukraine will not rise during this heating season, although an increase in prices in the future was called inevitable.

Electricity

The electricity tariff for the population is 2.64 UAH/kWh. Information about the price increase from January 2024 appeared against the backdrop of the forecast of the head of NEURK, Konstantin Ushchapovsky, that electricity could cost 3 UAH/kWh.

However, the Ministry of Energy and NEURC denied this data, and Ushchapovsky noted that even if a decision is made to change the tariff before the end of the 2023/2024 heating season, it is inappropriate to increase the price.

Note that you can save on electricity by installing a two-zone meter, because the night tariff from 23:00 to 07:00 is 1.32 UAH/kWh.

Water

At the end of last year, Ukraine planned to increase tariffs for cold water by 30%, but the decision of the National Energy and Regulatory Commission was then postponed. The second attempt was in the summer, but after criticism from the authorities, the Commission’s resolution was also canceled.

Therefore, the cost of cold water supply and sanitation services for the population still remains at the level that was before February 24, 2022, but next year new attempts to revise the tariff cannot be ruled out.

Pensions will increase

In 2024, pensioners will receive payments several times. This is due to the increase in the cost of living and the minimum wage included in the state budget, as well as planned indexation.

January

The recalculation of pensions from January 1 is planned on the basis of an increase in the minimum wage. This applies to Ukrainians who have reached 65 years of age and have 30 or 35 years of experience, respectively, for women and men. The pension for such pensioners must be at least 40% of the minimum salary (7100 UAH).

The amount of the smallest payment for these persons from January 1, 2024 will increase from 2680 to 2840 hryvnia.

March

In March 2024, the annual indexation of pensions should take place. It can be carried out according to the new rules of the “points” system, which will balance the amount of payments to those who retired many years ago and recently.

Prime Minister Denis Shmigal noted that the new indexation procedure will allow the average pension to be increased to 6 thousand hryvnia in 2024.
In addition, in March there will be an increase in pensions due to an increase in the cost of living. Although it will change on January 1, 2024, the state budget law states that “the recalculation of pensions, bonuses, increases and other pension supplements, which is carried out taking into account the minimum subsistence level for disabled persons established by law on January 1, 2024, March 2024 along with the implementation of annual indexation of pensions.”

Thus, the minimum pension from March 2024 will be UAH 2,361 instead of UAH 2,093 (the cost of living for persons who have lost their ability to work).

In addition, additional payments for overtime work will increase - from 20.9 to 23.6 UAH for each additional year.

April

In April 2024, the minimum wage will be increased again (to 8,000 UAH), so for pensioners with full insurance coverage, guaranteed payments will increase again - to 3,200 UAH (40% of the minimum wage).

In addition, a planned recalculation will be made to working pensioners, taking into account the additional length of service they received after retirement.

Subsidies

Until the end of the heating season, Ukrainians will receive subsidies calculated in the fall of 2023.

Also in December, the government began a pilot project to provide subsidies for coal or firewood if a household does not have the opportunity to heat their home with gas.

In 2024, the subsidy amount should increase. Thus, the state budget includes UAH 49.9 billion. expenses for the payment of housing subsidies and benefits to citizens for housing and communal services, the purchase of solid and liquid heating oil and liquefied gas. This is a third more than in 2023. It is predicted that 3.2 million households will receive subsidies.

Let us remind you. that the Chairman of the Union of Consumers of Utilities of Ukraine Oleg Popenko has calculated the possible increase in current tariffs for electricity and services for the maintenance of apartment buildings in Ukraine from the beginning of 2024.