General

To help Emirati households cope with growing living costs, the UAE introduced an inflation allowance scheme. Originally launched in 2022, the programme was restructured in 2025 to protect lower and middle income families from the impact of rising expenses in fuel, food, and utilities.
What is the allowance?
 The scheme provides monthly support to UAE families whose combined household income is below AED 25,000 per month. The financial aid covers major cost areas: food, electricity and water, and fuel. In some cases, additional components may be added by cabinet decision. 
Who qualifies?
 Eligibility criteria include:

1. The primary beneficiary (or their spouse) must be employed, or retired, and must be covered by social insurance or pension funds. 
2. The primary beneficiary should be aged 21 or older. 
3. All children included in the benefit must be under 21. 

There are also exemptions:

1. Senior citizens aged 60 or above.
2. Widowed or divorced women aged 45 or older.
3. Widowed or divorced women under 45 who are custodial parents of children under 21. 

How much support is provided?
 The benefits are tiered depending on need and cost levels:

• Fuel allowance depends on fuel price per litre:
     • AED 300 if petrol (95) costs between AED 2.10 to 2.85/litre
     • AED 600 if between AED 2.86 to 3.60/litre
     • AED 900 if above AED 3.61/litre 
• Food allowance is AED 500 for the primary beneficiary, plus AED 500 if there is an Emirati wife, and AED 250 per child under 21 (up to four children). Special rules apply to orphans and children of prisoners. 
• Electricity & water allowance is AED 400 per month or actual monthly consumption (whichever is lower) for a single residential unit. 

How assistance is delivered:

• Fuel and food allowances are credited monthly via the Emirates ID.
• Electricity and water support is given as a deduction from the monthly utility bill. 
   Unused allowance amounts cannot be carried over to subsequent months.

Application process:

 Families interested in applying must go through the Ministry of Community Empowerment. Steps include registering via UAE Pass/digital ID, submitting required documents like Emirates IDs, salary certificates, rental or property contracts, custody documents if relevant, etc. Processing can take up to 10 working days.
Budget & duration:

 The scheme has been extended through 2025 with a budget of AED 3.5 billion, and it will be updated periodically to match changing inflation, living cost pressures, and national priorities. 

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