Social Policy Minister Outlines Nine ‘Myths’ about Subsidies

Social Policy Minister Andriy Reva stated at Friday’s Parliamentary meeting that the majority of MPs were eligible to get subsidies for utility bills considering their incomes in 2015.

He called on MPs to stop speculation around subsidies and denied nine widely-shared ‘myths’ about them.

Myth 1. The whole amount of subsidies should be reimbursed in future, and subsidies can hinder the sale of an apartment, a house or receiving inheritance.

"There was no single case of it during past 20 years," Reva said, "a subsidy is a non-repayable government benefit, it has nothing to do with real estate title".

Myth 2. Residents have to consume all gas, water and other utilities provided under the subsidy, otherwise they won’t receive it in future.

"Burning all the gas covered by a subsidy is as senseless as it is inexpedient," Reva highlighted. If a household did not consume all the resources within the subsidy, the saved money can be used to pay the non-subsidized part of the utility bill or be transferred to the next months.

Myth 3. Receiving a subsidy is a lot of work, while its benefit can be paltry.

The Minister reminded that only two documents were necessary to receive a subsidy, while the application may be submitted electronically.

Myth 4. Subsidies are not provided to the unemployed of active working age.

If the residents have no income, a subsidy for them is calculated based on double living wage.

Myth 5. Subsidies are not given to households with outstanding utility bills.

This provision was lifted in 2011.

Myth 6. In case of mistakes in income declarations, fines will apply and subsidies will be cancelled.

"No fines exist for mistakes in declarations. Sanctions are possible only if the declarant intentionally held some important information back," Reva claimed.

Myth 7. A subsidy may be cancelled if residents buy foreign currency.

A household is not eligible for a subsidy if it bought anything worth over ₴50 thousand ($2 thousand) during the past 12 months. Buying foreign currency does not entail removing the subsidy.

Myth 8. The Finance Ministry verifies the incomes of subsidy recipients through banks.

It’s not true that subsidies will be cancelled for households with over ₴50 thousand on their savings accounts or other incomes.

Myth 9. A subsidy is not allocated to pensioners whose adult children are registered as residing with them while they reside in other places.

The decision of a subsidy commission is based on documents proving that such adult children reside in another place, no matter whether they are registered at their parents’ home.

Source: Valentyna Romanenko, Ukrayinska Pravda