The cost of feeding a family of four shot up by €3,543 in four years, according to a new study commissioned by Caritas.

The cost of food for low-income families has risen by up to 50% over the past four years with families with children barely earning enough money to cover basic life expenses, the study found. 

Whereas in 2020, food cost a low-income family with two children €7,132, this shot up to €10,675 in 2024.

In the case of an elderly low-income couple, they spent €3,375 on food in 2020 which increased by 33% - to €4,488 this year.

This emerged in the study titled The Minimum Essential Budget for a Decent Living 2024 published by Caritas Malta on Wednesday.

The study, the fourth in its series, builds on three previous full studies carried out in 2012, 2016 and 2020. Two mini studies, that focused on food and health, were conducted in 2022 and 2023.

As with previous studies, the 2024 study looked at three categories of low-income households: two children and two adults, a single parent with two children, and an elderly couple. 

A basic and augmented package 

The study looked at their income – based on minimum wage, social benefits, bonuses and allowances. These were layered over  basic life expenses. It did this by creating a basic basket of goods that included: food, clothing, health items, housing and household maintenance-related items, transport, education and culture, and personal care.

The cost of the basic versus the augmented basket. Image: Caritas Malta

Certain items were added to the 2024 basic basket to reflect people’s needs. These included: pricing of a capsule wardrobe, one visit to a private doctor, capped heating and air conditioning use (gas cylinder use was decreased), and mobile phone monthly top-ups.  

Assumptions were made that included: that these families had no major health expenses, were eligible for food aid packages and energy benefits, resided in subsidised housing, mainly used public transport and benefited from free education.

Apart from the basic basket, the study looked at an augmented basket that, while still simple in terms of living, included certain choice-based expenses:  owning a car, commercial rent, occasionally eating out or ordering take-out, and pet care. 

Two adults and two children

The findings showed that low-income households made of two adults and two children need €19,153 for the basic basket. This increases to €33,177 for the augmented basket.

They spent €10,675 (56% of the basic basket) on food – the biggest expense across all categories. The second highest expense was on clothing (€2,148) followed by household goods and maintenance (€1,793).

What is costing low-income families the most? Image: Caritas Malta

In the best-case scenario, these families received a maximum €21,132 annual income which showed that they scraped through to afford the basic basket expenses.

The study showed that families with infants and toddlers were at a financial disadvantage as they faced one-off and recurrent expenses that amounted to over €1,800 a year. Expenses included baby clothes, food and milk, nappies and mothers’ supplements during and after pregnancy.  

Single parents and elderly couples

A single parent with two children needs €17, 013 a year to afford the basic basket and this shoots to €30,724 for the augmented basket. These families received a maximum income of €20,463 a year with one minimum wage, tapering benefits and other benefits bonuses and allowances. 

This showed that single parents could not afford little luxuries such as ordering food and owning a car. Single-parent families spent €7,948 on food (47%). This expense was followed by household maintenance and expenses (17%) and personal care (9%).

Food prices increased over the last four years. Image: Caritas Malta

Elderly low-income couples need €14,732 for the basic basket or €26,556 for the augmented basket. They spend the bulk of their money on food (€4,488) and household goods and maintenance (€4,516). The latter could be due to the fact that their homes need more maintenance.  

In the best scenarios, these couples receive €15,974 annual income to include one pension and other bonuses and allowances. This rose to  €21,116 if both received a pension.

Choices to be made

The report highlighted that low-income families could make choices that slashed their budgets when it came to the two major expenses – food and clothing.

The price of food varies depending on locality. Image: Caritas Malta

The cost of a seven-day menu varied for people residing in different localities. For example, a four-person family spent €171.81 a week in the southern eastern harbour. The cost of the same items was  €243 in the southern harbour.

Clothes shopping costs can be slashed by opting for second-hand shops. Image: Caritas Malta

Similarly, picking charity shops for clothes shopping made a huge difference in the final annual cost of clothing. In the case of a family with two children, the cost dropped from €1,916 a year from regular shops to €433 from second-hand shops.

The way forward

The study went on to make various recommendations that could support these struggling families. These included:

• Expand and improve the Cost of Living Allowance (COLA): Continue enhancing COLA on an annual basis to ensure it adjusts for inflation and the rising cost of living, providing sustained financial support for vulnerable groups and helping to maintain a decent standard of living.
• Raise the poverty benchmark: Advocate for increasing the at-risk-of-poverty benchmark from 60% to at least 70% of median Net Equivalent Income (NEI), ideally reaching 100%. 
• Promote financial literacy and awareness: Expand nationwide public awareness campaigns focused on financial literacy, budgeting, and responsible spending. Establish multi-generational home sharing programmes: Develop initiatives that connect the elderly with young people for home sharing. 
• Enhance affordable housing initiatives: Improve and expand affordable housing measures, including rent benefits and support for low-income earners. Adjust income thresholds to allow more families to access these benefits, alleviating the financial burden of housing costs.
• Introduce a homeless Identity Card in collaboration with NGOs: Create an official ID card for homeless individuals to access social and health services, replacing the need for fixed-address ID cards. This system, already in use within the FSWS, could be expanded to all NGOs serving the homeless population.
• Assist with overdue utility bills: Eliminate interest charges on overdue water and electricity bills for low-income households, and consider offering one-time bailouts for those in severe financial distress. This measure would prevent further financial hardship for vulnerable individuals.
• Enhance healthy food access: Improve healthy food access for chronic illness patients in low-income households by implementing a healthy food prescription programme. Vouchers given out by health professionals would encourage and facilitate the purchase of nutritious foods, aiding in the management and prevention of diet-related diseases. 
• Channel potential food waste from supermarkets, other food shops and restaurants to low-income households through surplus notification and/or collection and distribution.