Caritas welcomes Budget social measures but warns minimum wage still low

Caritas said Malta’s minimum wage still is insufficient to cover the basic costs needed for a decent life, despite the adjustment in tax bands announced in Budget 2025.

Caritas called once again for a revision in the eligibility criteria for the rent subsidy, which is restricted to a maximum income of €25,149 in net wages. “This means that families exceeding this threshold are not eligible for the subsidy, although in several cases their net income remains insufficient to cover the needs for a decent life,” Caritas said in their reaction to Budget 2025.

And while a two-year social security tax credit for individuals who have completed a rehabilitation programme was an innovative and positive step forward, Caritas hoped for wider opportunities linked to temporary housing for people who have completed a rehabilitation programme, served a prison sentence or left other institutions and lack sufficient means. “This measure would help address the ongoing homelessness issue and support a more effective reintegration system.”

Caritas welcomed increases in pensions, but said additional measures were needed to address the needs of elderly couples who depend on a single pension, saying it was clear from studies it had carried out these people struggle to meet the basic needs for a decent life.

“Budget 2025 introduces several positive initiatives to enhance social well-being and inclusion. We strongly welcome improvements in social support, two years of social security credits for those completing drug rehab programmes, better family allowances, increases for workers and tax revisions, particularly the increase in children’s allowance and pensions, and support for adoptive and foster families, increases disability pensions, and additional COLA for low-income families.

“All these measures directly affect the most vulnerable in order to support their difficulties,” Caritas said.

The charity also welcomed the vouchers for the purchase of books for school-children, free gym access for 18-20 year-olds, and the increased financial allocation to improve mental health care, as well as th €500 tax credit for enterprises donating to NGOs in social, animal health or environmental fields, combined with food waste schemes. “These measures show a vision for community empowerment,” Caritas said.

Caritas however said it was essential that government, authorities, constituted bodies, civil society and voluntary organisations work to “curb any abuse arising from blind greed for the money that destroys humans and the environment they live in.”