The importance of cash assistance to respond quickly to Ukrainians’ needs

The conflict escalation, in March 2022, has increased people’s needs in conflict-affected areas, as well as those that were occupied and then liberated, such as Kharkiv and Sumy. Numerous buildings, including private homes and critical public infrastructures, are now destroyed. Income-generating opportunities are lagging too, with up to 50% of Ukrainians seeing their salary reduced according to the Central Bank of Ukraine.

Multi-purpose cash (MPC) assistance is a monthly payment that the people enrolled in a humanitarian aid programme receive to respond quickly to their most pressing needs. In emergencies, when people are forced to flee their homes, they leave with the bare essentials, losing their livelihoods. They may face long delays in obtaining the help they need. Providing displaced people with cash assistance enables them to fulfill their basic needs according to their priorities in a dignified manner, contributing to the local economy at the same time.

In Ukraine, ACTED has been providing cash assistance since 2018, primarily in Donetsk and Luhansk oblasts. Moreover, ACTED is co-leading the Cash Working Group which oversees the operational coordination and coherent use of MPC programmes.

Thanks to its expertise, ACTED quickly scaled up its existing MPC programme to provide flexible assistance to the diverse and multiple needs in the whole of Ukraine. Our team was able to rapidly adapt the original programme for cost-efficient operations, with a balanced in-person and remote registration system for beneficiaries in rural and hard-to-reach areas. ACTED also partnered with local authorities and partners to reach as many people as possible.

Meet Cash Coordinator Margarita Shabanova to learn more about ACTED’s cash assistance programme.

The best way to support internally displaced people is to provide them with MPC assistance. The quick armed conflict escalation on February 24th, 2022, forced millions of people to flee with a few pieces of luggage leaving their homes and jobs behind. Cash assistance offers multi-sectoral or sector-specific, efficient, and flexible support to help each beneficiary household covering their specific needs. For example, many need to make small repairs to their houses that have been damaged by the conflict. They need to restore insulation or replace windows blown up by blasts, while surviving the extremely harsh coming winter.

Cash assistance better prepares to winter and provides a quick response to small seasonal needs. Immediate cash assistance can also support meeting overall winterisation needs, such as supporting utility payments in the winter and supporting access to markets, while prices in Ukraine are increasing.

That is why drawing on ACTED’s extensive experience and technical capacity in cash programming in Ukraine, and in light of the inherent flexibility and dignity afforded by cash assistance, ACTED prioritises the provision of MPC wherever markets and banking systems are functional.

ACTED works closely with governments and partners to effectively provide cash assistance to conflict-affected populations.  Internally displaced people who moved out of conflict-affected areas and the population staying in conflict-affected areas are qualified to receive cash assistance. More precisely, among them are those the most vulnerable, including persons whose houses were destroyed, single parents, elderly people, pregnant or nursing women, families with three or more children, and with infants. Of top priority are also families with people with disabilities or in need of expensive medical treatment or care.

Moreover, ACTED provides rapid response to those who were affected by sudden shelling and missile strikes in Ukraine. For example, with the Kremenchuk mall attack, ACTED provided an immediate multi-purpose cash assistance to the attack’s victims. Throughout these instances ACTED works in close coordination with local civil society partners and local authorities, to receive the lists of potential beneficiaries and provide payment within 3 to 7 days after the event.

ACTED implements direct cash transfers through the most widely used and well-known financial service providers: the national bank (Oschadbank) and the national postservice (Ukrposhta) including through home delivery. Every time distribution happens, on average twice a week, people who are registered for cash assistance can redeem their cash at the local postal offices or banks using their identity document.

ACTED has been providing multi-purpose cash assistance in the amount of 2220 UAH (61 USD) per person/month in one-off payment, covering a period of three months. As of today, ACTED supported 164,491 conflict-affected people in 24 oblasts in Ukraine thanks to financial support from European Union, Bureau for Humanitarian Assistance (BHA) – USAID, the World Vision, the Crisis and Support Centre of the French Ministry for Europe and Foreign Affairs, CARE, Ukraine Humanitarian Fund, Ville de Paris, Alliance 2015, Helvetas (Swiss Solidarity) and Edmond de Rothschild Suisse.