State aid few can access: what’s wrong with the “eYasla” program

State aid few can access: what’s wrong with the “eYasla” program

Photo: ZN

In Ukraine, childcare for children under three is traditionally seen as a private family responsibility. With a shortage of nursery places and expensive nanny services, one parent often has to stay home. However, childcare is also a matter of public policy — especially during wartime and demographic decline, when the state loses both taxpayers and workforce participation.

This is the challenge the “eYasla” program, launched in January 2026, was meant to address. The government offers monthly support to parents of children aged 1–3 who return to full-time work, allowing them to choose how to spend it — on a nanny, private daycare, or other childcare services.

The benefit amounts to ₴8,000 per month (₴12,000 for children with disabilities), with ₴29 billion allocated in the 2026 state budget. Yet, three months after launch, only about 1,370 recipients are receiving payments — compared to more than 46,000 families receiving standard childcare benefits.

Why uptake is so low

1. Overloaded system and queues
The Pension Fund of Ukraine administers the program but is already overwhelmed after taking over dozens of social benefits. As a result, parents face long queues just to apply.

Although applications can now be submitted through administrative service centers, the lack of full integration with Diia remains a major bottleneck.

2. Limited access to funds
Payments are made only through a special account at Oschadbank. Parents must wait for the account to be opened and then visit a branch in person to receive a card — adding another layer of bureaucracy.

3. Strict usage rules
Funds are strictly targeted and can only be spent on officially registered childcare providers with specific business activity codes.

👉 In reality:

  • most nannies work informally and do not meet these criteria
  • registering as an entrepreneur increases costs and complexity
  • in small towns, finding a compliant provider is often impossible

4. Exclusion of self-employed parents
Parents registered as entrepreneurs (FOPs) are not eligible, even though they pay taxes. The program requires formal full-time employment as a hired worker.

5. Practical barriers to spending the money
Even families who receive funds often cannot use them:

  • money must be spent within 90 days, or it is returned
  • many public kindergartens are not registered in the system
  • payments are limited (e.g., often only covering food)
  • technical issues (e.g., lack of payment terminals) block transactions

6. Financial gap remains
₴8,000 per month helps but does not fully cover childcare costs, especially in large cities.

Bottom line

While the concept of “eYasla” is progressive — supporting working parents and boosting economic participation — its rigid rules, administrative burden, and mismatch with real-life conditions significantly limit its effectiveness.

In practice, the program risks becoming a formal policy success but a practically inaccessible tool for many families — highlighting the gap between policy design and implementation.

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