The government plans to increase tariffs by 20%: what will happen to utilities in 2026.

According to inkorr.com:  

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 by 20%, while funding for housing and utility subsidies will decrease by 7.2%.

Problems for citizens

It is clear that next year Ukrainians will face difficult conditions. Social policy expert Andriy Pavlovskyi notes that the increase in utility tariffs and the reduction of state subsidies will complicate the situation for millions of people.

Compared to 2025, expenditures on subsidies for housing and utility services will decrease by 7.2% to 42 billion UAH. Meanwhile, tariffs are significantly increasing: 'gas +15%, electricity +20%,' says the expert in the publication.

According to the specialist, this combination of factors will create significant difficulties for many families, especially those with low incomes. People will have to pay more for utilities but will receive less assistance from the state.

Potential consequences

Pavlovskyi notes that the official government forecasts may not correspond to reality. 'Considering the devaluation of the hryvnia, rising raw material and logistics prices, the significant increase in utility tariffs projected by the National Bank, real inflation may be much higher, reaching 15-20%,' warns the expert.

This scenario could lead to high inflation, negatively impacting the financial situation of the population and increasing pressure on the budgets of Ukrainian families.

Social expenditures in the 2026 budget will nominally increase by only 2.6% to 467 billion UAH. However, considering inflation, this actually means a reduction in real terms.

The expert notes that the reduction in social spending may indicate that the government will not be able to fulfill its promised increase in social standards, threatening the economic situation of Ukrainian families.

Therefore, significant increases in utility tariffs and cuts in subsidies may greatly affect the lives of millions of Ukrainians. In such a situation, low-income families will find themselves under particular pressure, as they will have to look for ways to cover costs that will rise while state support decreases. This highlights the importance of monitoring the situation and the possible need for adjustments to social policy in the country.