Inflation in UAE: Government disburses allowances to 47,300 low-income Emirati families

New social support programme includes food, electricity, water, and fuel subsidies

Ismail Sebugwaawo

Published: Sun 7 Aug 2022, 7:42 PM

Last updated: Mon 8 Aug 2022, 11:20 AM

The UAE government has disbursed inflation allowances to 47,300 low-income Emirati families to help them cater for the increasing prices of food, fuel, electricity and water.

The Ministry of Community Development announced on Sunday as part of its latest developments in the disbursement of inflation allowances to Emirati families as part of the government's new social support programme.

Inflation allowances are a government subsidy disbursed to Emirati families with low incomes to face the rise and inflation occurring worldwide in fuel prices, basic foodstuffs, electricity and water.

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The programme includes three types of allowances: food, electricity and water, and fuel subsidies.

Early last month, UAE President, His Highness Sheikh Mohamed bin Zayed Al Nahyan directed the restructuring of the social support programme for low-income citizens, doubling the initiative's budget from Dh14 billion to Dh28 billion.

The fund introduced new allocations for housing, university education, and unemployed citizens over the age of 45. The programme also introduced subsidies for fuel, food, water and electricity.

Authorities said the allocation of these allowances stems from the leadership's keenness to provide citizens of limited income throughout the country with decent livelihoods.

The ministry has pointed out that since mid-July, it started approving the disbursement of the fuel allowance for eligible people with low incomes, while it began disbursing the food subsidy allowance from August 5, and will be followed by the electricity and water allowance.

“These funds will benefit low-income families across the UAE, who are entitled to inflation allowances,” said the ministry’s statement.

Fuel subsidy

The programme provides a monthly subsidy of 85 per cent of the fuel price increase over Dh2.1 per litre. The head of the family receives a monthly subsidy of 300 litres, while the working wife receives a subsidy of an additional 200 litres. Meanwhile, the head of the family receives a subsidy of 400 litres if the wife does not receive support. The family presents the Emirates ID at any Adnoc fuel station in the UAE, where the value of the bonus due can be used during the course of the month.

Food supplement allowance

As part of this initiative, the government bears 75 per cent of food price inflation, as a commitment to provide the necessary assistance to Emirati families to enable them to meet their living requirements and provide them with a decent life.

The ministry confirmed that all beneficiaries of inflation allowances registered in the fuel allowance are automatically registered in the food allowance, and text messages are sent to them confirming their registration by creating an account linked to their Emirates IDs. The families can benefit from the value of the allowance due on throughout the month, by visiting one of the approximately 100 Lulu Hypermarkets outlets across the UAE and present their Emirates IDs during payment.

Electricity and water allowance

The social welfare programme provides a monthly subsidy of 50 per cent for electricity consumption less than 4,000 kilowatts, and monthly subsidy for water at a value of 50 per cent for water consumption less than 26,000 gallons.

The ministry said that during the coming period, the beneficiaries of the inflation allowances will be automatically registered to receive the monthly subsidy for the consumption of electricity and water.

The ministry explained that the mechanism for applying for social assistance and inquiries related to support, are all available through the ministry's website (www.mocd.gov.ae), and the smart application, and registration is done using the digital identity or the Emirates ID.

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