Institutions providing free accommodation for IDPs will receive direct compensation from Pension Fund

Since the onset of the war, one of the most pressing issues for Ukrainians forced to leave their homes has been housing. To address this, the country has introduced several tools and programmes. One of these is the provision of free accommodation for internally displaced persons (IDPs) in facilities provided by military administrations and local authorities.

As of 1 January 2025, this programme was transferred from the Ministry of National Unity to the Ministry of Social Policy.

The Government has improved and significantly simplified this tool by introducing a series of changes, developed by the Ministry of Social Policy, to Cabinet of Ministers Resolution No. 261.

“Supporting internally displaced persons, particularly by providing housing, is a state priority. This decision has created a very simple and transparent mechanism for interaction between institutions hosting IDPs free of charge and the state. From now on, all information exchanges will be digital, without unnecessary reports or paperwork. The Pension Fund, which has a robust IT system, will administer the payments, and the issue of debts for utility services owed to these institutions will be resolved,” noted Oksana Zholnovych, Minister of Social Policy.

From now on:

• The process will be more efficient. The payment function is transferred to the Pension Fund. Payments will be made directly to the institutions hosting IDPs, rather than to the authorities managing these facilities.
• Digitisation of the process will prevent abuses, and payments will now be made monthly without delays.
• The ownership type of the institution will not matter, meaning a wider range of institutions and organisations will be eligible for compensation.
• Compensation will be provided for each IDP housed in an institution (based on social housing standards, utility service norms, and solid fuel provision norms), similar to the housing subsidy programme. This means that payment receipts, invoices, or reports previously required will no longer be needed.
• Institutions will be able to apply for compensation to the Pension Fund starting from July 2025. Payments will be made monthly by the 10th of each month (including arrears for May and June).
• For the period from January to April 2025, funding will follow a transitional mechanism: institutions must submit information on arrears to social protection authorities, after which a one-off payment from the state budget will clear the debts.