The Palestinian Authority (PA) recognises the role played by social protection as a key insti¬tution of the future Palestinian State. This is reflected in the PA National Development Plan and the related Social Protection Sector Strategy. In 2010, a unified cash transfer payment scheme (CTP) was launched with the objective to alleviate poverty. The CTP scheme is administered by the Ministry of Social Affairs. At present the CTP scheme covers ap-proximately 95,000 households in the West Bank and Gaza. The impact of the new reformed CTP in terms of poverty reduction or income distribution is not adequately understood at present. A more detailed analysis of the CTP, including impact on poverty reduction, needs to be undertaken as a basis of the further development of the so¬cial assistance system. The European Union has been providing fiscal support to ensure the regular payment of social allowances to poorest Palestinians in the framework of the CTP under the "PEGASE programme of support to Vulnerable Palestinian Families". The objective of the assignment is to assess the social impact of the Cash Transfer Pro¬gramme in in the West Bank and Gaza, in the framework of the PEGASE programme of support to Vulnerable Palestinian Families. AETS experts will within this framework assess the poverty reduction impact of the CTP; evaluate the impact of the CTP on the well-being of recipient households; map-out the social and demographic profile of the beneficiary households of CTP; assess the coverage of needy population of CTP and estimate the inclusion and exclu¬sion error in the scheme; identify problems and development needs concerning the targeting and administration of the CTP scheme (including payment mechanism and fiscal aspects); make recommendations concerning the improvement and further development of the CTP scheme to fulfill the objectives of the social protection sector strategy; make recommendations to the EUREP regarding its support to the CTP trough the PEGASE programme of support to VPF, with a medium term perspective.