The country’s social welfare net has been constructed over the years aimed at catering for the basic needs of citizens – food, housing, healthcare and education. It seeks to ensure that no one falls by the wayside and that every individual gains access to indispensable resources. This net not only improves the quality of life for vulnerable persons but also sustains their inherent dignity.
One of the primary goals of having a social welfare net is to diminish inequality and promote social justice, recognising that individuals have different starting points and different potentials and that systemic barriers can hinder their ability to flourish.
This government believes that social welfare programmes play a crucial role in protecting vulnerable populations, including children, the elderly, people with disabilities and those facing economic hardships. These programmes therefore provide financial assistance, healthcare, counselling and other essential services to those who are most in need.
The social welfare system also makes a robust contribution to economic stability and productivity. Through providing a safety net, social programmes also prevent extreme poverty and reduce the strain on individuals during times of economic downturn (such as we had during the COVID pandemic or in inflationary periods). This stability, in turn, enables people to pursue education, acquire skills and find employment, at the same time enabling individuals to escape the cycle of poverty and achieve their full potential.
All these goals have been addressed in the strongest manner possible in Budget 2025, where we are proud to be delivering an unprecedented number of improvements to the social welfare net for this year.
This ministry started rolling out in earnest the budget’s package of 45 measures towards the end of 2024 and, by the beginning of this month, had already rolled out 24, or 53 per cent, of these measures, thus clearly demonstrating that we are striving for a society where no one is left behind and where compassion and justice prevail.
Contributory and non-contributory pensioners are among the biggest beneficiaries. Besides an across-the-board increase in pensions, where applicable pensions have been further enhanced through an ongoing process to gradually adjust retirement pensions of persons born before 1962 and the structure of widowhood pensions.
Expenditure on pensions and social benefits this year will reach a staggering record of €1.6 billion- Michael Falzon
Families with children have once again been a focal point of this year’s budget, with improved benefits for over 63,000 families with children under 16. Similarly benefiting are physically disabled children and fostered children, plus the payment of an increased birth bonus for families welcoming a third child or more.
Working parents are now entitled to higher rates of the ‘In-work Benefit’, this through a measure which disregards not only paid social security contributions but also the income tax incurred by a household. Later in the year, parents of children in post-secondary education will receive yet further support through the payment of a special allowance.
Furthermore, low-income single parents and married couples are drawing better supplementary payments, while individuals, mostly women, who had failed to pay less than 10 years’ worth of national insurance contributions to qualify for a full pension are now being paid enhanced bonus rates, pegged to the actual number of paid contributions.
Elderly persons and families with children are also among the prime beneficiaries of the additional cost-of-living benefit now being given for the third year running, aimed at cushioning inflationary pressures on prices. Payments, the first of which were paid in December, will this year top €50 million.
The government values deeply the work done by family members who take care of old-aged relatives at home. To this end, we have widened the criteria for eligibility to carers’ allowances, additionally providing for those who look after more than one senior citizen at their home, by giving them an additional 50 per cent benefit. Furthermore, senior citizens aged 75+ and who receive the supplementary assistance, which allowance also improved in this budget, are now automatically receiving the pink card and entitled to more free medicines.
Yet again, by raising the capital assets limit relating to non-contributory benefits, more low-income persons may now become entitled to such benefits or else still retain them if their assets slightly increase.
It is impossible to list all the improvements here. Suffice to say, however, that the expenditure on pensions and social benefits this year will reach a staggering record of €1.6 billion. We do this due to our unwavering belief that embracing a robust social welfare system is not only a matter of moral obligation but also an investment in a brighter and more prosperous future for all.
Michael FalzonMichael Falzon is Minister for Social Policy and Children’s Rights.