Money instead of institutions: Ukraine launches experiment on direct payments for vulnerable IDPs

In August 2026, Ukraine will launch a large-scale experimental project that could radically change the approach to financing social services for internally displaced persons (IDPs). The Cabinet of Ministers has approved a new mechanism under which budget funds will be transferred not to the accounts of institutions or orphanages, but directly to special accounts of the aid recipients themselves. This decision aims to increase transparency of spending and expand choices for vulnerable categories of citizens.

Who will receive direct payments and how it works

According to the Cabinet of Ministers' resolution, the new mechanism concerns two specific categories of displaced persons: the elderly and people with disabilities who require institutional care or supported living. The essence of the innovation lies in the transition from financing "institutions" to financing "needs". The Fund for Social Protection of Persons with Disabilities will take on the function of monthly transferring funds to the special accounts of recipients.

It is important to note that the funds will have a special usage regime, which should prevent their expenditure on purposes unrelated to social services. The project is coordinated by the Ministry of Social Policy, Family and Unity. Key players in the financial and social sectors are involved in the implementation of the initiative, including the National Social Service and the banking sector, in particular PrivatBank.

Guarantees for those who already receive assistance

Authorities emphasize that the reform will not affect those who are already in the social service system. For citizens for whom the decision to provide social services was made earlier, the procedure will not change. They will continue to receive assistance in the previous format, without the need to undergo re-assessment or bureaucratic procedures. The experiment concerns only those who will in the future apply for institutional care or supported living.

Context: changes in IDP support in 2026

The launch of this project takes place against the backdrop of other significant changes in the system of support for displaced persons. In August 2026, living allowances are made according to the established schedule, however, citizens are recommended to update their data in the registry in a timely manner. In addition, changes regarding housing vouchers came into force on August 1: some IDPs lost the right to receive them in the classic form, but a new mechanism for using the voucher as a down payment when obtaining a mortgage has appeared.

Despite the adoption of a new law on displaced persons, existing IDP status certificates remain valid until a certain date, and there is no need to change them yet. Also, displaced persons have received the opportunity to use a tax deduction for housing rent by submitting the corresponding declaration and supporting documents.