Abela announces €276m childcare agreement and family law reform

Prime Minister Robert Abela has announced a new €276 million agreement with childcare services providers to keep services free of charge.

Speaking on Sunday during a discussion on quality of life and family-related issues, Abela said the new childcare agreement - an increase of €34 million over the previous deal - would be signed in the coming days. The agreement is aimed at continuing to support families while encouraging greater participation in the labour market.

Abela also highlighted recent fiscal measures targeted at families, including a second round of tax cuts that came into force in January. Under the measure, parents of two children earning up to €60,000 will pay no income tax within three years, a move he said would leave families with more disposable income.

Family law reform

Responding to issues raised during the discussion, the prime minister announced that the government would be launching a holistic reform of the family law following a public consultation. He said the reform would also include investment in a dedicated building for family-related court cases.

On social media and children, Abela said discussions were intended to reassure parents that while children should benefit from technology, safeguards were necessary to protect their mental health and well-being.

He also referred to climate change, saying Malta was preparing for the increasing risks associated with extreme weather, including through investment in the disciplined forces.

Abela said the country’s economic position was allowing for the development and opening up of green and open spaces for families, including Manoel Island and White Rocks.

Before the discussion began, Abela confirmed that he had accepted the resignation of affordable housing minister Roderick Galdes, saying Galdes would be defending himself against allegations made against him and his family.

The discussion event held by the PL on Sunday.

Parliamentary secretary Andy Ellul will be taking on the social and affordable housing portfolio

The event also featured a discussion on a range of family-related topics, with contributions from experts, stakeholders and members of the public.

Correction January 26: A previous version incorrectly described the budget's income tax measure for parents.