Ukraine to receive USD 880 million from World Bank to upgrade social protection system

The World Bank Board of Executive Directors has approved a new SPIRIT (Social Protection for Inclusion, Resilience, Innovation and Transformation) project worth a total of USD 880 million, aimed at modernizing Ukraine's social protection system, supporting vulnerable groups, and strengthening community resilience.

This was announced by the Ministry of Social Policy, Family and Unity, Ukrainian News Agency reports.

The project will be implemented by the Ministry of Social Policy and will cover more than 1 million people, including low-income families, families with children, people with disabilities, the elderly, and caregivers.

The project financing includes a World Bank loan of USD 860 million and grant co-financing from the United Kingdom and Germany of USD 20 million through the Ukraine Support, Recovery, Reconstruction and Reform Trust Fund (URTF).

SPIRIT is part of the broader international support to Ukraine and will contribute to the advancement of reforms necessary for Ukraine's European integration in the areas of social policy, support for persons with disabilities and integration into the labor market.

The project envisages the implementation of three key reforms:

Creation of a unified system of Basic Social Assistance instead of fragmented support programs. This will ensure the principle of a "single window" for beneficiaries and combine financial support with social services and employment through an integrated case management system. Reform of social services financing. State funds will be directed according to the principle of "money follows the person" through the procurement of services from state, public and private social service providers. Modernization of the system of support for persons with disabilities. This involves a transition from a medical model of disability determination to a person-centered approach that assesses the real needs of a person and expands access to rehabilitation, assistive devices and employment support. As Ukrainian News Agency earlier reported, in April, the World Bank downgraded Ukraine's GDP growth forecast from 1.8% to 1.2% in 2026.