The UAE has strengthened its inflation allowance scheme, a monthly financial support programme designed to help Emirati families cope with rising living costs. First introduced in 2022, the initiative was restructured earlier this year to extend broader social protection to households most affected by inflation.
According to the latest government resolution, the allowance applies to families with a combined monthly income below Dh25,000. The scheme helps cover fuel, food, electricity, and water bills, with additional components subject to Cabinet approval.
Eligibility Requirements
Applicants must meet specific conditions to qualify. The primary beneficiary—or their spouse—must either be employed and registered with social insurance or pension funds, or be retired. The applicant must also be at least 21 years old. Eligible children must be under 21.
Certain exemptions allow broader access. Senior citizens aged 60 and above automatically qualify, as do widows and divorced women aged 45 and above. Divorced or widowed women under 45 with custody of children under 21 are also covered.
Details of Financial Support
The allowance is structured across three key areas:
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Fuel support (when petrol price 95 exceeds Dh2.1 per litre): Dh300 if the price is between Dh2.1 and 2.85, Dh600 if between Dh2.86 and 3.6, and Dh900 if Dh3.61 or higher.
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Food allowance: Dh500 for the primary beneficiary, an additional Dh500 for one Emirati wife, and Dh250 per child under 21 (up to four children). Special provisions exist for orphans and children of prisoners.
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Electricity and water: Dh400 per month, or the actual consumption cost—whichever is lower—applied to one residential unit.
Payments for fuel and food are credited monthly to the beneficiary’s Emirates ID card, while electricity and water subsidies are deducted directly from bills. Unused balances cannot be carried over to the next month.
Application Process
Families can apply through the Ministry of Community Empowerment using UAE Pass, the country’s digital ID system. Applicants must upload key documents including Emirates ID, salary certificates, housing documents, and proof of custody for divorced applicants. Processing takes up to 10 working days.
Programme Budget and Aims
The inflation allowance has been extended through 2025 with a budget allocation of Dh3.5 billion. Officials say the scheme will be periodically updated to reflect inflation, household needs, and national priorities.
By default, the father is considered the family’s primary beneficiary, though ineligible fathers may pass this role to the mother, and in some cases to the eldest sibling.
The initiative forms part of the UAE’s broader social support framework, designed to ease the financial burden on lower and middle-income Emirati families. By cushioning the impact of rising fuel, food, and utility costs, the government aims to enhance economic stability and strengthen its social safety net.
