Report - UNDP Russia

2. Benefits and subsidies, to assisthousing utility payments by households.In 2007 compensation of the differencebetween real housing utility costs and pricespaid by households amounted to 12% of thetotal real cost of housing utilities or 36% of allbudget funds allocated for the sector. Thiscompensation represents subsidization of allhouseholds regardless of their incomes, butmostly benefits households, which enjoy betterliving conditions (i.e. wealthier households).However, compensation of the differencebetween real housing utility costs and pricespaid by households has been declining inrecent years and has ceased to be the mainsubsidization instrument. The biggest share offinancial support for housing utilities is now inthe form of direct assistance to individuals whomeet certain criteria (various categories ofdisability, etc.) to help them meet their housingutility bills. In 2007 such assistance represented15.3% of all housing utility costs (46.4% of allbudget funds allocated for housing utilities).Other direct assistance, specifically to poorhouseholds, was only 5.7% of housing utilitycosts (17.3% of all budget expenditures onhousing utilities).It is worth giving a brief account ofhow direct assistance for payment of housingutilities operates in Russia. The country hashad a programme of housing subsidies since1994. According to the initial regulations,subsidies are provided to households whosejustifiable housing bills exceed 22% ofaggregate household income. The number ofrecipients rose to a peak of 15.2% in 2003,suggesting that every seventh householdrequired social support. Research intoTable 3.7Main parameters of social programmes related to housing utilities2000 2001 2002 2003 2004 2005 2006 2007Families receivinghousing utility subsidies,thousands3212.4 3963.4 5251.3 7092.6 6801.5 6063.6 5457.7 4560.9% of all families 7.7 9.1 11.4 15.2 13.7 11.9 10.6 8.8Average monthly subsidiesper family, rubles80 124 237 361 435 550 675 641Number of people inhouseholds with memberswho receive housing utilitybenefits, thousands46015.1 48810.7 49795.1 44011.7 43913.3 37615.6 39513.3 38846.4Number of people,receiving housingutility benefits,thousands [sub-setof previous line]29914 28151.5 29156.4 27860.3 30171.5 29416Average monthlybenefit supportper recipient,rubles32 47 67 98 126 178 216 259Source: Calculations based on Rosstat data, Central Statistics Database, http://www.gks.ru/dbscripts/Cbsd/64 National Human Development Report in the Russian Federation 2009