Additional COLA to be distributed this week

The Department of Social Security is set to disburse an additional payment, part of the COLA mechanism, to vulnerable groups as part of a promised measure from last year’s Budget.

In a statement on Thursday, the Ministry for Social Policy and Children’s Rights said that the payment will be transferred towards the end of the week.

An initial payment was transferred to 37,000 vulnerable families in December last year. The amount received is based on the family’s means and the number of children in the family unit.

This mechanism is a permanent addition to the COLA, and will remain in place after inflation returns to normal levels.

Minister Michael Falzon said that this payment reflects government’s ability to keep to its word on electoral promises.

This additional payment was announced during last year’s Budget. The benefit will be paid every year, and will be revised upwards whenever the inflation rate surpasses 2% and when inflation across any three of five main sectors – food, housing, utilities, household maintenance and health – tops the average of the previous five years.

The government will be spending €2.7 million on this second payment alone. Since last December, the government invested €19.4 million in additional aid to address inflation.