Children’s allowances are to rise while the threshold for working parents to qualify for an in-work benefit allowance is being relaxed, Finance Minister Edward Scicluna said during his Budget 2021 speech on Monday.

Households with an income of under €25,300 a year will see their children’s allowance rise by €70 per child, with the allowance rising from €450 to €500 for families which earn above that threshold.

The threshold for eligibility for an in-work benefit is being raised, from a maximum income of €18,200 per year to €23,000 per year for single parents and from €26,000 to €35,000 for couples.

As a result, an additional 4,500 will benefit.

The in-work benefit is intended for couples and single parents who are employed and have children younger than 23 who still live with them. Single parents receive up to  €1,350 yearly per child while couples receive up to €1,300 yearly per child.

Adoption, fostering, carers

The government will also be incentivising parents to adopt a child locally, with any such adoptions being eligible for a €1,000 grant.

Foster parents will see their care allowance rise by €10 every week.

Parents of children with disabilities aged over 16 who had to stop work to care for them will receive a grant of €300.

The minister said those who turn 16 will be granted free internet for a year.