Cabinet resolution #114 of February 4, 2025 

Decision-maker: the Cabinet of Ministers 

Status: in effect from February 5, 2025, and until January 1, 2026 

Who is affected: parents and guardians of newborns, the Ministry of Social Policy, the State Children’s Service, and banks 

Summary: 

  • the state is switching from the issuance of a physical “baby package” to a monetary payment that can be spent in selected stores via accounts in designated banks 
  • the amount of the monetary payment amounts to three subsistence minimums for children under six years set by law on the date the child is born (currently, it is 7,689.00 UAH) 
  • the State Children’s Service must: 
    • explain to banks how the monetary payment will work instead of the “baby package” 
    • sign agreements with banks willing to participate in this program 
    • by the end of 2025, conclude agreements with stores willing to participate in the program and compile their list 
  • until the system is fully operational, payments will go via the state-owned PrivatBank 
  • to receive the monetary payment, an application for monetary compensation must be submitted no later than 12 months from the day the child is born: 
    • in paper form either in person or by mail to the local social protection office or Administrative Services Center 
    • in electronic form by sending an email or via the E-Maliatko [E-Baby] portal. 

What is right: 

  • parents will have the opportunity to choose the necessary goods for their child based on individual needs 
  • the state will save the funds on purchasing and logistics of delivering ready-made packages 
  • local businesses participating in the program will benefit from transition. 

Why this is important: the flexibility of using assistance upon the birth of a child is an important step, but on its own, it will not solve the problem with demographics. Real incentives for childbirth require a broader strategy that considers various aspects of family life. The experience of European countries demonstrates that a stable birth rate can be facilitated only via a competent combination of fiscal incentives with developed social policy and favorable conditions for balancing work and raising a child. Monetary payments alone can help address certain economic difficulties, but without additional reforms, they will not resolve issues of uncertainty about the future. 

Increasing assistance is part of the solution, but sure results are possible only if the state implements a comprehensive policy that considers all aspects of family welfare. 

Background information: at the beginning of October 2024, the Cabinet approved the Demographic Development Strategy developed by the Ministry of Social Policy. 

Additional information: 

  • Ok, So What? podcast, exclusive episode: Demographic strategy is not about having children