A family of four needs almost €14,000 a year to have a decent life, but in reality the figure shoots up to €25,000 with today's costs, according to an anti-poverty foundation, which called for a revision to the cost-of-living adjustment system.

Caritas Malta made the call in its report 'The Minimum Essential Budget for a Decent Living', which focuses on how much money people need to live in Malta.

Its main recommendation was to revise the COLA mechanism, which raises wages based on the rate of inflation of the previous year. 

Researcher Suzanne Piscopo said: "We must set up a task force to put together a proposal to review the COLA mechanisms so that it reflects the true cost of living in our modern day age, and so that all citizens have a minimum income to live decently in Malta." 

How much does a basic standard of living cost?

The study set out the "minimum essential budget" for a "decent quality of life" for three different household types:

• It suggested that a family of four - two adults and two children - would need €13,946 a year.
• A single parent with two children would need €11,038;
• An elderly couple required €8,157.

Between 41% to 51% of this minimum essential budget would go towards food, which Caritas said was an increase on previous years.

The budget covers a 'basic basket' and is comprised of eight categories: food, clothing, personal care, health, household goods and maintenance, education and leisure, transport, and housing.

The 2020 report adds the cost of a laptop and smartphone, regular visits to doctors, and a wi-fi router to the minimum basket of goods. 

The report focuses on the minimum budget needed to live a simple decent quality of life

The minimum budget increased when other costs were taken into account such as owning a private car, eating out or covering commercial rent. 

Taking these costs into account, the minimum budget for a family of four increases to €25,003. For a single parent with two children, it rises to €21,974 and the budget for elderly couples goes up by €17,900.

How many families receive basic income?

The report said a family of two where one adult earns the minimum wage will reach the basic income. Those who are on the Tapering of Benefits Scheme will also make the minimum threshold.

However, homes with two adults and two children where the income consists of unemployment or social assistance will not meet the basic standard of living that the report sets out.

What are the recommendations?

The report includes over 50 recommendations, including revising the COLA mechanism.

Other recommendations include:

• raising the benchmark where a person is considered to be at risk of poverty;
• give low income earners a form of ‘digital cash’ to be spent on items like food, stationary or clothing;
• giving homeless people an ID card with a temporary address so they can apply for health and social benefits.