The additional COLA payment for vulnerable households will start being paid out by the end of this year, Finance Minister Clyde Caruana has announced in the Budget speech.

The payment, which Prime Minister Robert Abela said will benefit 95,000 families in Malta, will be issued in two payments, one this December and the second next May.

The amount that each family will receive will depend on the size of the family and their income, ranging from €100 to a maximum of €1,500 over the two payments.

On Sunday, Abela announced that the measure will be allocated to 95,000 families, more than double the previous year, when the measure was first introduced.

Brushing off the suggestion that this shows that the number of families in a vulnerable financial state has doubled, Caruana said that this increase is down to changes in how eligibility for the measure is calculated, following discussions with unions and social partners.

The measure will set the government back over €26m over the year.

COLA up to €12.81, to remain taxed

Meanwhile, the regular cost-of-living adjustment is set to increase to €12.81, almost a 30% increase over last year's figure.

However, the payments will still be taxed over the coming year, much to the dismay of several social partners who have been calling for tax on COLA to be scrapped.

€64 increase in stipends

Students’ stipends will increase by €64 over the next year, a pro-rata increase in line with COLA.

All students are set to receive this increase, unlike the stipend increases announced last month, which were targeted at students of specific courses.

Speaking about these increases during his budget speech, Caruana said that they reflect the government’s intention to fill gaps in the country’s labour market. These include primary school teachers and teachers of maths and sciences, he said.