Elderly welcome budget proposals but concerned over those at risk of poverty

The National Council for the Elderly expressed its general satisfaction over Budget 2013 and said that in the current financial crisis, the budget gave hope to economic growth and the creation of jobs.

It however expressed its concern over the risk of a father increase of people at risk of poverty.

Referring to the tax band which has been widened for a swathe of middle- to upper-middle class voters who will pay a reduced 32% tax on incomes ranging from €19,501 to €60,000, the council said that this provide opportunities and financial assistance to those who earn more than €20,000, whereas those earning below this figure are not entitled to such concession. 

"These measures can be considered as a miscarriage of solidarity and social justice. This is not the way how wealth should be distributed in order to reach the needs of vulnerable people in our society," the elderly said.

It has been forecasted that the European Union will only achieve half of its initial 20 million people for the reduction target.

"The measure of our budget proves that this forecast is correct and Malta's objective to reduce the number of 6,560 people at risk of poverty is in jeopardy."

The council lauded positive measures such as the increase in children's allowance and other family benefits.

"From the older people perspective the measures put in place enhance the standard of living and quality of life of those earning between €20,000 and €60,000 whether they are employed or self-employed," the council said.

On the other hand, the lower middle class, workers and those who earned less than €20,000 - an amount which is less then the average wage - continue to slide down towards the risk-of-poverty threshold. 

"It also means that the rich are getting richer and the poor are getting poorer," the council added.