More should have been done in the Budget to secure a dignified standard of living for those facing economic hardships, the church's Justice and Peace Commission said on Thursday.

It welcomed the social measures announced in the Budget Speech on Monday but stressed the need for ongoing improvements to address the broader social needs of vulnerable groups — especially the elderly, homeless, and migrant workers — who face significant barriers daily.

While acknowledging the government’s pledge to achieve“quality”, the commission argued that this goal required more than monetary support; it needed policies that foster the integral development of every person, nurturing a truly inclusive, resilient community and a fairer economy for all.

The commission noted that the budget prioritised immediate support for workers and families with measures such as increased cost-of-living adjustments, children’s allowances and tax relief.

"These aim to alleviate some of the financial strain on households facing rising costs. However, they do not address the root causes of economic vulnerability that leave many families financially insecure," it said. 

"Untaxed minimum wages help low-income workers retain more earnings but do not create pathways for economic mobility. Similarly, adjustments to tax bands and temporary relief measures do little to establish a robust social safety net."

While zero VAT on essential sanitary products, announced in the Budget, was a positive step, given Malta’s rising cost of living, more comprehensive assistance was essential, such as affordable food and housing.

"While pension increases are welcomed, retirees may still struggle to secure a dignified standard of living without significant measures to counteract inflation."

Quality education and healthcare

The commission said investments in education and healthcare underscored their importance for social equity. Higher teacher salaries, improved school infrastructure and expanded community health services were promising.

Yet, insufficient educational resources and training for teachers limited efforts to meet students’ diverse needs. Investments in high-tech skills — such as AI, data science, and engineering — reflected forward-looking economic goals, but without clear pathways from education to employment these efforts may not equip youth for workforce demands.

Collaboration between educational institutions and industries, coupled with targeted programmes for underrepresented groups, would ensure young people have the skills and opportunities needed for success.

On healthcare, the commission said the budget’s allocations — including a new Acute Psychiatric Centre and expanded mental health resources — were commendable. However, mental health concerns in workplaces remained unaddressed.

A holistic approach to workforce well-being should include fair wages and safe working conditions in high-stress sectors. Such policies were crucial for community stability, and the commission called for a more comprehensive strategy that prioritises worker well-being to foster dignity and stability.

Addressing Malta's affordable housing crisis

The commission said the government’s initiatives like ‘Rent to Assist’ were critical for supporting low-income families. However there was a need for an evaluation system to ensure these schemes were effective and adaptable to changing needs.

Expanding initiatives further would better address the ongoing housing crisis and provide stable access, especially for marginalised groups. Prioritising these communities would help build an inclusive housing landscape that promotes social cohesion and stability.

The commission also called for a unified approach to environmental and urban planning.

"The budget’s green incentives reflect a commitment to sustainability, but they often focus on individual choices, rather than broader environmental transformation," it said.

Inclusive growth, workforce resilience and migrant empowerment

Malta’s commitment to equitable workforce opportunities, like the Equal Pay for Work of Equal Value initiative, was a step forward, the commission said, but there was a need for a broader strategy addressing the unique challenges faced by migrant workers, ensuring fair wages and job security. Additionally, the potential inflationary effects of implementing equal pay must be carefully considered.

"While the Malta Budget 2025 addresses key social, economic and environmental issues, many measures only provide incremental relief. Short-term assistance must be paired with strategies targeting root inequalities. Continued investment in social infrastructure, secure housing and workforce fairness is essential for fostering a future where every individual can reach their full potential," the commission said. 

 

 

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