Budget 2026: Student stipends to be increased by 15%

Clyde Caruana said government will channel an extra €6 million in young people's pockets

Students across Malta and Gozo are set to receive a 15 per cent increase in their stipends, an investment that will see an extra €6 million channelled directly into the pockets of young people, Clyde Caruana announced in Monday's budget speech.

He said the uplift goes to show government prioritises the welfare of young people.

“This government will remain focused on protecting and prioritising our students and youth,” Caruana said in parliament. “We recognise that there are certain challenges that students face, and we have listened to them.”

The increase is one of this year's main measures in the education sector.

It is intended to help students meet rising living costs and ease financial pressures while they continue their full-time studies at post-secondary and tertiary levels.

Stipends were last increased in the 2024 budget, when all students got a €64 increase, which was specifically implemented to reflect the Cost of Living Adjustment (COLA) for that year.

Additionally that year, higher stipends were introduced for specific prescribed courses, such as those in teaching and mathematics, to address sector shortages.

Before that, stipends had increased by 10% in 2022.

Gozitans to get even more

On Sunday Times of Malta revealed Gozitan students who study in Malta will get even more - they will see their monthly grant increase to €280 to help with travel and accommodation costs associated with commuting between the islands.

Currently, Gozitan students receive a sum of €500 every three months (€166.60 a month) to help with the financial burdens. With this measure, those eligible will see an increase of more than €100 a month.

Some 1,000 Gozitans study in Malta full time and the measure is expected to cost €5 million.

Occasionally controversial

Stipends, a unique feature of Malta's free higher education, were introduced in 1987 and have been a subject of occasional controversy ever since.

Most recently last month, university professor Andrew Azzopardi called for university stipends to be replaced with targeted grants and scholarships.

The radio host and former dean of the social wellbeing faculty argued that stipends, originally intended to remove financial barriers to higher education, are largely redundant and should be re-evaluated.

Instead, students should be given a one-time grant at the beginning of the academic year and a ring-fenced grant, similar to those available to academics, for study-related expenses such as books, software, equipment or educational travel, he said.

But government quickly pushed back, saying it would only strengthen them.

In a reaction, the Prime Minister said stipends "are there to stay" and any idea to scrap them is "bizarre".

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