Ambaean custom chiefs in Luganville on Santo have welcomed the initiative as the best medicine for their people who have exhausted their financial resources during their time off island.
They said their people would definitely need financial support to live again on Ambae.
Many of the 10,000 people evacuated after the Manaro volcano erupted, have been pushing to return home, now the government has lifted the state of emergency.
Some have commercial businesses, including shops, which they locked up before they were evacuated.
Oxfam's Cash Transfer Programme is for evacuees on Santo and Maewo.
It aims to help provide people with financial assistance so they can purchase local goods from local markets to meet their needs.