The Government of the UAE has disbursed 47,300 low-income Emirati family’s allowances as inflation support recently to combat the increasing prices of water, food, electricity, and fuel. The announcement was recently made by The Ministry of Community Development in the region as a part of the Government’s new program for social support in the area.
Kavan Choksi– an overview of this new social welfare support government program
Business and finance expert Kavan Choksi states this social support program is like a government subsidy to low-income Emirati families to afford the rising costs of essential commodities due to the increase in inflation across the world. This program has three necessary allowances fuel subsidies, electricity and water, and food.
The Ministry of Community Development of UAE recently approved the disbursement of the allowance for fuel for families for low-income families in the middle of July 2022. On the 5th of August this year, it started to disburse the budget for food subsidy, followed by the electricity and the water allowance.
Prior to the above developments, the Government of the UAE announced that it was going to restructure the programmer for social welfare, increasing it to double its size to AED 28 billion. These reforms have a provision for AED 5 million now for the yearly allocation for social support, compared to its previous amount of AED 2.7 billion.
Features of the fuel allowance
The Ministry of Community Development, the value of the allowance every month is based on the social status of every family, and it changes with the cost of the fuel. Families can obtain their assistance throughout the entire month after showing their Emirates ID at an ADNOC distribution station that has several locations across the UAE.
Subsidy for food
The allowance for food subsidy is given to families as per the rates of inflation. And it changes as per the rates of inflation in the prices of staple food in the region. Like the fuel subsidy, it is distributed as per the socio-economic status of every family.
How does the inflation allowance support program work?
Ministry sources reveal that all of the beneficiaries of these inflation allowances registered for the fuel subsidy are likewise registered for the food subsidy automatically. The messages via text are delivered to the recipients to confirm the registration.
An account in their name is created and connected to their Emirate ID. When they visit any of the hundred Lulu Hypermarkets in the UAE and for payment need to show the Emirates ID. Every eligible family can reap the advantages of this inflation support allowance programmed all through the whole month.
According to the Ministry of Community Development in the UAE stated that in order to receive the monthly allowance regularly, the beneficiaries of every eligible family will be registered automatically for the consumption of water and electricity in the future.
Business and finance expert Kavan Choksi sums up by saying that people can complete the registration process to enjoy the benefits of the inflation support program digitally via the website of the ministry or the mobile app for social support inquiries or assistance.