World Bank approves USD 880 million SPIRIT project to transform Ukraine’s social protection system

World Bank’s Board of Executive Directors has approved the new SPIRIT (Social Protection for Inclusion, Resilience, Innovation and Transformation) project worth a total of USD 880 million, aimed at modernising Ukraine’s social protection system, supporting vulnerable groups and strengthening community resilience.

The project will be implemented by the Ministry of Social Policy, Family and Unity of Ukraine and will cover more than one million people, including low-income families, families with children, persons with disabilities, older people and caregivers. The financing package includes an USD 860 million World Bank loan and USD 20 million in grant co-financing from the United Kingdom and Germany through the Ukraine Relief, Recovery, Reconstruction and Reform Trust Fund (URTF).

SPIRIT forms part of broader international support for Ukraine and will help advance reforms required for Ukraine’s European integration in the areas of social policy, disability support and labour market inclusion.

The project envisages three key reforms. The first is the creation of a unified Basic Social Assistance system to replace fragmented support programmes. This will introduce a “single window” approach for beneficiaries and combine financial support with social services and employment through an integrated case-management system.

The second reform concerns financing for social services. Public funding will follow the principle of “money follows the person” through the procurement of services from public, community and private social service providers.

The third reform focuses on modernising support for persons with disabilities. This involves moving from a medical model of disability assessment to a person-centred approach that evaluates actual needs and expands access to rehabilitation, assistive devices and employment support.

Minister of Social Policy, Family and Unity of Ukraine Denys Uliutin said the approval of the project was an important signal of international trust and support for Ukraine.

“SPIRIT is, above all, an investment in people, communities and Ukraine’s future. The World Bank’s decision on the SPIRIT project reflects trust in Ukraine, support for our reforms and a shared vision of what a modern social support system should look like: digital, targeted, accessible and people-centred. Thanks to this project, we will be able to strengthen support for vulnerable people, reinforce community capacity and invest in human capital even during wartime. This is an important signal that international partners see Ukraine’s social resilience as part of our shared security and future recovery,” the Minister said.

Bob Saum, Regional Country Director for Eastern Europe at the World Bank, noted that Ukraine continues to suffer severe humanitarian and economic losses. According to him, vulnerable households, especially those whose sources of income have been significantly affected, require adequate support to mitigate the impact of the crisis, meet basic needs and prevent them from falling into poverty. The project supports reforms aimed at reducing poverty, improving access to social assistance and ensuring that support reaches those who need it most, even in times of crisis.

The Ministry of Social Policy, Family and Unity of Ukraine expressed gratitude to the World Bank and international partners for their trust, support and joint efforts to restore Ukraine’s human capital.