The government is planning a significant increase in utility tariffs in the 2026 budget while simultaneously reducing subsidies for the population. According to forecasts, gas prices will rise by 15%, and electricity prices will increase by 20%, while financing for housing and utility subsidies will be reduced by 7.2%.
Ukrainians will likely enter the next year with unpleasant news. Social policy expert Andriy Pavlovskiy predicts a difficult situation for millions of citizens due to the rise in utility tariffs and the reduction of government subsidies.
Compared to 2025, expenditure on subsidies for housing and utility payments will decrease by 7.2% - to 42 billion hryvnias. At the same time, tariffs are significantly increasing: 'gas +15%, electricity +20%,' the expert notes in the publication.
According to the specialist, this combination of circumstances will create significant difficulties for many families, especially those with low incomes. People will have to pay more for housing and utility services while receiving less support from the state.
Pavlovskiy emphasizes that the government’s official forecasts may not match reality. 'Considering the devaluation of the hryvnia, the rise in raw material and logistics prices, the significant rise in utility tariffs predicted by the National Bank, the actual inflation may be much higher and reach 15-20%,' the expert warns.
This scenario could lead to high inflation, worsening the financial situation of the population and increasing pressure on the family budget of Ukrainian citizens.
Social expenditures in the 2026 budget nominally increase by only 2.6% - to 467 billion hryvnias. However, considering inflation, this effectively means their reduction in real terms.
According to the expert, the reduction of social expenditures in practice means that the government may fail to ensure the promised increase in social standards for the population, posing a threat to the economic situation of Ukrainian families.